13 July 1990 Ministerial Letter 32988 F - Deductibility of Medical Expenses in respect of Special Schooling

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.

July 13, 1990

19(1)

Re:  Deductibility of Medical Expenses in respect of  19(1)

We are responding to your letter of February 12, 1990 requesting a ruling concerning the deductibility of expenses incurred by you in order to provide special schooling for 24(1)

As discussed with you by telephone, an advance income tax ruling (for which a fee is charged) can only be provided in respect of proposed transactions.  Since the situation and events described in your letter include events that have already taken place, we are unable to  provide you with a ruling as requested.  We are prepared, however, to comment on the question raised in your letter.  We regret the delay in providing this response. 

24(1)

24(1)

You have asked whether the above expenses are deductible as medical expenses under section 118.2 of the Income Tax Act.

Our Comments

Paragraph 118.2(2)(e) of the Act provides that the amounts paid must be

     " ... for the care, or the care and training, at a school, institution or other place of the patient, who has been certified by an appropriately qualified person to be a person who, by reason of a physical or mental handicap, requires the equipment, facilities or personnel specially provided by that school, institution or other place for the care, or the care and training, of individuals suffering from the handicap suffered by the patient;".

As indicated in paragraph 23 of Interpretation Bulletin IT-519 entitled "Medical Expense and Disability Tax Credits" (copy attached), the Department accepts the view that dependants suffering from behavioral problems and in attendance at schools specializing in this type of problem are considered to qualify under the above provision and the expenses incurred may qualify as medical expenses.  However, it must be clear from the facts that the problems are so severe that they require special equipment or facilities or the services of specially-trained personnel which are not available in the public school system.

From the information in your letter  24(1)

Although small classroom sizes and similar advantages found in privately-funded schools may be a preferred alternative to regular schooling for children with behavioral problems, the Department does not consider that the tuition at these schools qualifies as a medical expense for purposes of paragraph 118.2(2)(e) of the Act.

We understand that you are attempting to obtain additional information on the nature of the of the special facilities and programs available at 24(1) since our Saint John District Office is in the best position to forward this information we would ask that you contact Mr. R.D. Leger, Director.  Saint John District Office who will be pleased to provide you with the Department's response to your request.  Your deposit of $325.00 will be returned under separate cover.

for Director Business and General DivisionRulings DirectorateLegislative and Intergovernmental  Affairs Branch

Attachment - IT-519

c.c.      Mr R.D. Leger,Director  Saint John District Office