Income Tax Severed Letters - 2022-09-28

Technical Interpretation - External

29 June 2022 External T.I. 2022-0923441E5 - Virtual medical services

Unedited CRA Tags
ITA: subsections 118.2(2); 118.4(2); paragraph 118.4(2)(a), and subsection 400(2) of the IT Regulation 5700.
Summary Under
Tax Topics - Income Tax Act - Section 118.4 - Subsection 118.4(2) - Paragraph 118.4(2)(a)
whether a virtual medical service is rendered at the location of the health professional or of the patient requires a review of the provincial licensing requirements
Summary Under
Tax Topics - Income Tax Regulations - Regulation 105 - Subsection 105(1)
question of fact whether virtual medical services are rendered at the location of the provider or of the patient

Principal Issues: METC - The meaning of the the phrase “the jurisdiction in which the service is rendered” in paragraph 118.4(2)(a).

Position: It is a question of fact where the service is rendered.

Reasons: Paragraph 118.4(2)(a) allows fees paid for virtual medical services to be eligible for the METC provided the medical practitioner is ‘authorized’ to practice their profession in a particular province. This will be dependant on the relevant laws of each jurisdiction.

20 May 2022 External T.I. 2022-0925491E5 - Eligibility for the administrative position

Unedited CRA Tags
ITA - 81(1)(a); Indian Act - 87

Principal Issues: Would a First Nations employee, who requested and voluntarily moved to a new position off-reserve due to their personal risk of exposure to COVID-19 at their previous on-reserve workplace, qualify for the administrative position provided under the Guidance?

Position: No.

Reasons: The employee could have continued to work on-reserve, but chose to work from their home office off-reserve because of their personal situation.

Technical Interpretation - Internal

26 October 2021 Internal T.I. 2021-0892731I7 - METC – Renovation expenses

Unedited CRA Tags
Sections 118.2; 118.3; and 118.041; ss 118.4(2); paragraph 118.2(2)(l.2)

Principal Issues: Whether the costs incurred to modify an existing deck qualify as a medical expense for purposes of the METC.

Position: It is a question of fact but in this case most likely yes.

Reasons: See response.