14 March 1997 Internal T.I. 9636827 - 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.

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.

		March 14, 1997

	Client Services Directorate	HEADQUARTERS
Mr. Rene Tapp - A/Manager	M. Eisner
	Individual Publications Section(613) 957-2138
		963682

Disability and Medical Expense Tax Credits

This is in reply to your memorandum of November 1, 1996, concerning the above noted subject.

In connection with paragraph 118.2(2)(e) of the Act, you have referred to an example of an individual who is blind and, in your view, is eligible to claim the medical expense tax credit under that provision. For three months, the individual, on a full-time basis, attended a school for individuals who are learning to use a guide dog. The individual paid fees of $6,000 to the school.

Paragraph 118.2(2)(e) of the Income Tax Act (the Act) refers to the cost of care, or care and training, of an individual at a school, institution, or other place when an appropriately qualified person certifies that the individual, by reason of a mental or physical handicap, requires the equipment, facilities, or personnel specially provided by that place. When these requirements are satisfied (also see paragraphs 32 and 33 of IT-519R), the related costs are eligible for the medical expense tax credit even if the individual attends such a school or institution on a part-time basis.

In our view, the individual could claim the cost of $6,000 under paragraph 118.2(2)(e) of the Act, if the conditions outlined above are met. In determining whether or not an individual qualifies to claim the costs of $6,000 under paragraph 118.2(2)(e) of the Act, it will be necessary to review all the facts. It is also our view that the individual would be entitled to claim the disability tax credit if he or she otherwise meets all the requirements.

We hope that our comments are of assistance to you.

John F. Oulton
Section Chief
Business, Property and Personal Section
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch