6 April 1994 Internal T.I. 9405237 - DISABILITY CREDIT - AMPUTATED LIMB, PROSTHETIC DEVICE

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.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

is individual with an amputated limb who uses a prosthetic device eligible for the disability tax credit?

Position TAKEN:

question of fact and individual circumstance. Have individual complete T2201. If claim remains dubious, refer to Director General, Assessment of Returns Directorate per Reg 900(12)

Reasons FOR POSITION TAKEN:

The ITA and pamphlet is clear that it is the effect of the impairment on the ability to perform the activities of daily living (which differs between individuals) which determines whether an individual is eligible for the disability amount

		April 6, 1994	

	Sudbury District Office	Rulings Directorate
	Client Assistance	Sandra Short
(613) 957-8953
	Attention: Maria Ferreira
		940523

Subsection 118.3(4) and Section 118.4 of the Income Tax Act

This is in reply to your correspondence of March 1, 1994 wherein you ask whether a client with an amputated limb who uses a prosthetic device is eligible for the disability tax credit under section 118.3 of the Act.

It is a question of fact and individual circumstance whether a particular individual qualifies for the disability tax credit. While section 118.4 of the Act codifies the eligibility criteria by defining what is a basic activity of daily living for the purposes of the disability credit and by specifiying the circumstances under which an impairment is considered to markedly restrict an individual's ability to perform such an activity, a case by case determination is necessary. It is the effect of the impairment on the ability to perform the activities of daily living, which effect differs between individuals, rather than the ailment or condition itself, which determines whether an individual is eligible for the disability amount.

The client should complete a Form T2201. If the district office assessor concludes that the claim does not meet the requirements of subsection 118.4(1) of the Act, the client's claim should not be allowed. If, after a review of the completed form, the claim appears dubious, that is, the assessor still cannot determine whether the individual is eligible for the disability amount, the district office may refer the claim to The Director General, Assessment of Returns Directorate (in accordance with Regulation 900(12)) for a determination. A referral to the Department of National Health and Welfare may be made by the Assessment of Returns Directorate under the authority of subsection 118.3(4) of the Act.

P.D. Fuoco
Section Chief
Personal and General Section
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch