10 August 1995 Internal T.I. 9507937 - TUTORING COSTS AS A MEDICAL EXPENSE

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:

whether fees paid to a tutor qualify as a medical expense

Position TAKEN: no

Reasons FOR POSITION TAKEN:

cost of tutor not elibigle for tution or medical expense tax credit
in certain circumstances, 118.2(2)(e) provides for care & training at a school, institution or other place but using the principle of ejusdem generis, the home of a tutor will not qualify as an "other place"

		August 10, 1995

Ottawa Tax Services Headquarters
Client Assistance Division A. Humenuk
957-8953
Attention: Nicole Côté
950793

Medical Expense Tax Credit
XXXXXXXXXX

We are referring XXXXXXXXXX request for an adjustment to her 1993 tax return in respect of her son, XXXXXXXXXX to you for your consideration and reply.

It would appear from the correspondence that XXXXXXXXXX request has already been reviewed by S. Brissette of your office and additional information requested of her on November 8, 1994. While we do not have any information concerning the amount claimed, it would appear that XXXXXXXXXX is seeking to claim the amount paid to XXXXXXXXXX as a medical expense for 1993 and subsequent taxation years and that her claim for 1993 has been denied.

In our telephone conversation of June 26, 1995 (Côté/Humenuk), you indicated that you were advised to refer XXXXXXXXXX to us for a ruling. We regret any confusion that may have arisen in respect of that advice but as indicated in Information Circular 70-6R2 "Advance Income Tax Rulings", the Department does not issue advance income tax rulings in respect of transactions that are already in progress. The verification of adjustments requested by a taxpayer is the responsibility of the Taxation Centre or Tax Services office serving the area in which the taxpayer resides. The following comments are intended to assist you with that verification but if you require any further technical assistance, we would be pleased to provide you with our views.

It seems clear from the documentation submitted to us that XXXXXXXXXX has a learning disability and that his doctor is prepared to certify that he needs specialized help in overcoming the handicap created by this disability. What is not clear from the documentation is whether XXXXXXXXXX is a school, institution or other place which specially provides equipment, facilities or personnel needed for the care or care and training of persons with learning disabilities similar to that of XXXXXXXXXX

XXXXXXXXXX

The fee paid to a tutor in respect of a child with a learning disability is not an eligible medical expense as defined in the Income Tax Act nor do such fees qualify for the tuition tax credit.

In the case of Rannelli v M.N.R. (91 DTC 816), the Court found that fees paid to the Fraser Academy for the care and training of a dyslexic child qualified as a medical expense under former subparagraph 110(1)(c)(vi) (the wording of which is substantially the same as that found in paragraph 118.2(2)(e) of the current Act). The Court was able to distinguish the Fraser Academy, an institution specializing in the care of children with dyslexia, from a private school which may go to great lengths to accommodate a child's handicap but does not necessarily have specialized equipment, facilities or personnel to assist in the care or care and training of a child with that particular handicap. Court cases involving a medical expense claim for fees paid to a private school have consistently been disallowed (see Johnston v M.N.R. (88 DTC 1300)) on the basis that the fees paid do not fit within the wording of either subparagraph 110(1)(c)(vi) or paragraph 118.2(2)(e) of the Act. It is our view that fees paid for a tutoring service would likewise not qualify as a medical expense under paragraph 118.2(2)(e) even if the tutor had specialized training because the statute specifically refers to a school, institution or other place.

The phrase "other place" may warrant further explanation in that the act of tutoring must obviously be conducted somewhere and it may be argued that the location of the tutoring qualifies as the "other place" referred to in the statute. The interpretative principle ejusdem generis requires general or class words such as "other place" to be restricted to the same genus as the specific words that precede them. Accordingly, the term "other place" as used in paragraph 118.2(2)(e) of the Act should be interpreted as referring to a place which is substantially the same as a school or institution. In our view the home of a tutor is not sufficiently similar as to be considered a school, institution or other place.

XXXXXXXXXX

As stated above, we have the impression that XXXXXXXXXX is offering her services as a tutor. If additional information is submitted which indicates that XXXXXXXXXX is operated in a manner similar to a school or institution and has either staff, facilities or equipment specially provided to treat XXXXXXXXXX particular handicap, then the amount paid for his care and training at the centre would, in all likelihood, be an eligible medical expense. Additional information which would assist you in making a determination of whether XXXXXXXXXX could be considered a school, institution or other place offering specialized personnel, equipment or facilities would include:

- documentation which shows that XXXXXXXXXX is recognized as a place which offers specialized care and training to learning disabled individuals,

- number of staff and their educational qualifications,

- the capacity of the school in terms of the number of individuals which can be accommodated at one time,

- the curriculum or daily agenda followed by the individuals attending the facility and

- a full description of the facility, including a description of any specialized equipment offered by the facility.

Finally, we note that the certification by XXXXXXXXXX doctor is somewhat vague as to the type of specialized help or tutoring XXXXXXXXXX needs. Did the doctor recommend XXXXXXXXXX as a place where XXXXXXXXXX could get a certain type of treatment? Are there specific qualifications needed to provide XXXXXXXXXX with the care and training he needs? The certification of the individual's need for specialized equipment, personnel or facilities must either be specific as to the school, institution or other place which provides the specialized personnel, facilities or equipment or be specific as to the type of personnel, facilities or equipment which is needed to provide care and training of a person with that type of handicap.

We enclose copies of the material sent to us by XXXXXXXXXX and have advised her that you will be responding to her request.

P.D. Fuoco
Section Chief
Personal and General Section
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch