10 March 2015 External T.I. 2014-0552351E5 - Medical expenses

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Principal Issues: 1. Is the cost of a snow blower eligible for the medical expense tax credit when the purchaser has a disability tax certificate?
2. Is the cost of hiring a maintenance service for snow removal and lawn maintenance for an individual who qualifies for the Disability Tax Credit eligible for the METC?

Position: 1. No 2. No

Reasons: 1. Legislation 2. Previous positions

XXXXXXXXXX
2014-055235
George A. Robertson, CPA, CMA

March 10, 2015

Dear XXXXXXXXXX:

Re: Medical Expense Tax Credit

This is in response to your correspondence to the Sudbury Tax Centre that was directed to us regarding the eligibility of specific expenditures for the medical expense tax credit ("METC"). You asked if either the cost of purchasing a snow blower or the cost of hiring a maintenance service for snow removal and lawn maintenance for an individual who qualifies for the disability tax credit is eligible for the METC.

This technical interpretation provides general comments about the provisions of the Income Tax Act ("Act") and related legislation (where referenced). It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R6, Advance Income Tax Rulings and Technical Interpretations.

Medical expenses that are eligible for the METC are limited to those described in subsection 118.2(2) of the Act. If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2) of the Act, or if the conditions under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the METC, even though the expenditure may have been incurred for medical reasons. Only devices or equipment specifically listed in the Act or in the Income Tax Regulations qualify for the METC. The cost of a snow blower is not listed in either subparagraphs 118.2(2)(i) or 118.2(2)(m) of the Act and section 5700 of the Regulations (which list specific prescribed devices and equipment). Therefore, the cost of a snow blower does not qualify for the METC.

There is also no specific provision that would allow maintenance expenditures such as snow removal or lawn maintenance as a medical expense other than when included in costs of a nursing home (or similar care) or when performed by an attendant as part of attendant care provided. Although it is not clear whether you require attendant care, the following information regarding attendant care may be useful to you.

Subparagraph 118.2(2)(b.1) of the Act allows a limited claim for amounts paid as remuneration for attendant care for a person with a disability if certain criteria are met. Paragraphs 1.31 to 1.43 of Income Tax Folio S1-F1-C1: Medical Expense Tax Credit, available on the Canada Revenue Agency website at www.cra-arc.gc.ca, explain the provisions of the Act that allow attendant care as a medical expense. Specifically, paragraph 1.32 of Folio S1-F1-C1 describes the CRA's views on attendant care and states, in part

"Attendant care is care provided by an attendant who performs those personal tasks which a patient is unable to do for him or herself. Depending on the situation, such tasks could include meal preparation, maid and cleaning services, transportation, and personal services such as banking and shopping. Attendant care would also include providing companionship to a patient. However, if a person is employed as a single service provider, such as a provider of only maid and cleaning services, or a provider of only transportation services, the provision of such service would not be viewed as attendant care..."

When a disabled individual contracts for a specific service as opposed to attendant care, the primary purpose of the expenditure is the procurement of that particular service rather than the personal care of the disabled individual. In our view, the costs paid for clearing snow or cutting grass would not be considered an eligible medical expense for the purpose of the METC.

In a telephone conversation, you also asked if the cost of a trip (travel costs) for a person to accompany an individual who qualifies for the disability tax credit on either a vacation or a business trip would qualify for the METC. Generally, certain transportation and travel expenses incurred by a patient for both the patient and an attendant are eligible for the METC when a patient must travel to obtain medical services and specific criteria are met. These criteria are explained in paragraphs 1.64 to 1.72 of Folio S1-F1-C1. Based on the telephone conversation, it appears that the travel is not to receive medical services and therefore the cost of the trip will not be eligible for the METC.

We trust that these comments will be of assistance.

Yours truly,

Pamela Burnley, CPA, CA
Tax Credits and Ministerial Issues
Business and Employment Division
Income Tax Rulings Directorate