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.
April 17, 1997
Surrey Taxation Centre HEADQUARTERS
Client Services Directorate M. Eisner
Sigrid Hagglund (541-17) 957-8953
964117Medical Expenses - Computer Equipment
This is in reply to your memorandum of December 12, 1996, concerning the above-noted subject.
The circumstances of your situation involve a child who was born in XXXXXXXXXX. The child is a quadriplegic and is severely disabled as result of an accident that occurred in XXXXXXXXXX. The child is able to hear (as mentioned to us in a telephone conversation referred to below), but is unable to speak. During 1996, a computer and an apparatus were purchased which enable the child to communicate with other individuals. The apparatus is attached to her hands and head. When she is asked a question, she is able to answer by moving her hands and head which activate the choices on the screen of the computer. The sole issue is whether the cost of the computer is an eligible medical expense to her parents.
With respect to the above circumstances, we obtained additional information in telephone conversations with the child's father (XXXXXXXXXX/M. Eisner) and the parents' accountant (XXXXXXXXXX/M. Eisner). On the basis of these conversations, it is our understanding that a reimbursement was received in respect of the apparatus, which has not been claimed as a medical expense.
In connection with the purchase of the computer, it is our understanding that the child received a damages award from an insurance company as a result of the accident in XXXXXXXXXX. The award was received for the benefit of the child and is currently being held in trust by XXXXXXXXXX
In order for an individual to be eligible to claim the medical tax credit in respect of a medical expense, one of the requirements in subsection 118.2(1) of the Act is that the individual (or his legal representative) must have made the payment in respect of the medical expense. In the case at hand, the information provided to us indicates that the parents used funds beneficially belonging to the child to pay for the computer. It would follow that the cost of the computer is not a qualifying medical expense to either of the parents. It is also our view that the computer would not be a prescribed device or equipment pursuant to section 5700 of the Income Tax Regulations. XXXXXXXXXX.
If you require further technical assistance, we would be pleased to provide our views.
John F. Oulton
Section Chief
Business, Property & Employment Section II
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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