30 October 1997 External T.I. 9716865 - MEDICAL EXPENSE - SPECIALLY-TRAINED ANIMALS

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 an individual must qualify for the disability tax credit to claim the costs of acquiring and maintaining specially-trained animals as medical expenses under paragraph 118.2(2)(l).

Position:

Although there is no requirement under paragraph 118.2(2)(l) that the patient qualify for the disability tax credit, one would expect so.

Reasons:

A person who qualifies under paragraph 118.2(2)(l) by reason of having a severe and prolonged impairment that markedly restricts the use of his or her arms or legs would likely qualify for the disablilty tax credit by reason of this same disability.

J. Gibbons
XXXXXXXXXX                                 			5-971686

Attention: XXXXXXXXXX

October 30, 1997

Dear XXXXXXXXXX:

We are replying to your letter of June 13, 1997, requesting our comments on the requirement in paragraph 118.2(2)(l) of the Income Tax Act (the “Act”) that an individual have a “severe and prolonged impairment” to include the costs of acquiring and maintaining specially-trained animals as medical expenses. Specifically, you inquire whether by the term “severe and prolonged impairment” there is a requirement that an individual qualify for the disability tax credit under section 118.3 of the Act.

Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70- 6R3. The following comments are, therefore, of a general nature only.

According to paragraph 118.2(2)(l) of the Act, the right to claim various costs with respect to a specially-trained animal which assists a patient is restricted to an individual who is blind or profoundly deaf or who has a “severe and prolonged impairment that markedly restricts the use of the patient’s arms or legs.” In order to be eligible for the disability tax credit under section 118.3 of the Act, an individual must have a severe and prolonged mental or physical impairment, the effects of which are such that the individual’s ability to perform a basic activity of daily living is markedly restricted. In addition, certain other requirements, such as the need for certification, must be met. According to paragraph 118.4(1)(b) of the Act, an individual’s ability to perform a basic activity of daily living is markedly restricted only where all or substantially all of the time, even with therapy and the use of appropriate devices and medication, the individual is blind or is unable (or requires an inordinate amount of time) to perform a basic activity of daily living, which activities include, according to paragraph 118.4(1)(c) of the Act, feeding and dressing oneself and walking.

Although there is no requirement in paragraph 118.2(2)(l) of the Act that the patient qualify for the disability tax credit under section 118.3 of the Act, one would expect a person that has a severe and prolonged impairment that markedly restricts the use of his or her arms or legs to so qualify. However, since the disability tax credit is not restricted to individuals who have a severe and prolonged impairment that markedly restricts the use of their arms or legs, the fact that an individual may qualify for the disability tax credit would not necessarily entitle the individual to claim a medical expense credit under paragraph 118.2(2)(l) of the Act.

We trust that these 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