13 February 1997 External T.I. 9638755 - PHSP BENEFITS TO SAME-SEX COUPLES

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:

1. Does the accepting of same-sex couples for private 	health services plan impact the definition of medical 	expenses?
2. Will the same-sex couple have to co-habit for a 	certain period?
3. Is IT-339R2 being revises?
4. Are benefits provided in 1996 to a same-sex couple 	to be reported as a taxable benefit?

Position:

1. no
2. Yes, at least 12 months
3. No
4. no

Reasons:

1. There has been no legislation change to subsection 	118.2(2). The medical expenses can not be for a same-	sex partner.
         2. Per previous correspondence
         3. Per information from the Publication Section.
         4. Per previous correspondence.

	                                	963875
XXXXXXXXXX	                               Jacques E. Grisé
                                         (613)957-2059

Attention: XXXXXXXXXX

February 13, 1997

Dear Sirs:

Re: PHSP Benefits to Same-sex Couples

This is in reply to your letter of November 21, 1996 requesting clarification on a number of issues relating to a private health services plan (PHSP) that provides coverage for same-sex couples.

As you know, we have accepted that the definition of a PHSP is sufficiently broad to include a plan that provides coverage for same-sex couples. However, the definition of a PHSP does not impact on the legislative requirements of paragraphs 118.2(2)(a) and (q) of the Income Tax Act (the Act). Payments described in paragraph 118.2(2)(a) or (q) of the Act would not qualify as medical expenses if they are in respect of an individual's same-sex partner.

The only recent change in respect of who is eligible for benefits under a PHSP is the one set out in our letter of September 9, 1996 (document E6M12435). Although there is no specific requirement as to the qualifications for a same-sex partner, we would expect that employers would set up plans requiring a reasonable period of cohabitation before a couple can be considered as same-sex partners. In our view, a period of cohabitation of at least 12 months would be reasonable since it would be consistent with the time requirement contained in the Act with respect to common law spouses.

Interpretation Bulletin IT-339R2, Meaning of "Private Health Services Plan, is not currently being revised. A copy of your letter will be sent to the section responsible for interpretation bulletins.

Benefits provided to an employee or an employee's same-sex partner under a PHSP in 1996 are not required to be reported as a taxable benefit.

Yours truly,

John F. Oulton
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch