16 September 1997 External T.I. 9704755 - XXXXXXXXXX - SCHOOL FOR LEARNING DISABLED

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 a particular school is a school, institution or other place which specially provides equipment, facilities or personnel for the care and training of individuals with a specific disability for the purpose of 118.2(2)(e)

Position:

based on the info provided, no

Reasons:

lower student-teacher ratio and individualized plans of instruction are not factors in determining whether school provides equip, facilities or specially trained personnel for the care and training of individuals with a specific handicap and no other info was provided

A. Humenuk
XXXXXXXXXX		970475

Attention: XXXXXXXXXX

September 16, 1997

Dear XXXXXXXXXX:

Re: Medical Expense for Care and Training at a School, Institution or Other Place

We are replying to your letters of February 18 and May 31, 1997, in which you ask for a ruling as to whether the services provided to your clients qualify as a medical expense for tax purposes.

In order for fees paid to a school, institution or other place to qualify as a medical expense under paragraph 118.2(2)(e) of the Income Tax Act (the "Act") in respect of a student who receives care and training at that place, three basic requirements must be met:

1.The student must be suffering from a physical or mental handicap, the severity of which is such that the student requires the equipment, facilities or personnel specially provided by the school, institution or other place.

2.The school, institution or other place must provide specialized equipment, facility or personnel for the care, or care and training, of individuals with the particular physical or mental handicap suffered by that student.

3.An appropriately qualified person must certify that the above conditions are met with respect to the individual receiving the care at that place. This certification is usually carried out by a medical practitioner, but is not restricted to such professionals. Generally, the certificate should include a description of the equipment, facilities or trained professionals required to adequately provide care, or care and training, for the individual. In addition, the Department must be satisfied that the equipment, facilities or personnel provided by a particular place meets this description.

Whether or not the second condition has been met cannot be determined in isolation from the other criteria. Fees paid to a school which has equipment, facilities or personnel specially provided for the care, or care and training, of individuals with a particular disability will not qualify as a medical expense in respect of students who either do not have that particular disability or where the severity of the disability is not such that the student requires placement in that particular facility.

The information submitted with your request does not identify any particular equipment, facilities or specially-trained personnel which is provided by your institution for the care and training of individuals with a particular disability. The use of individualized programs of instruction and the use of lower student-teacher ratios that are provided in the public school system is not relevant for this purpose. As a result, we are unable to offer an opinion that the fees paid to XXXXXXXXXX qualify as a medical expense under paragraph 118.2(2)(e) of the Act.

We trust our comments will be of assistance.

Yours truly,

C. Chouinard
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch