24 March 1998 Ministerial Letter 9803158 - DIABETES & DISABILITY TAX CREDIT

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:

availability of the disability tax credit to individuals with diabetes

Position:

generally not available

Reasons:

conditions of diabetes do not markedly restrict (unable to or takes an inordinate amount of time to) the basic activities of daily living as defined in 118.4(1)(c)

MINISTER/DEPUTY MINISTER'S OFFICE 98-00601M
ADM'S OFFICE
RETURN TO 15TH FLOOR, ALBION TOWER

XXXXXXXXXX

March 24, 1998

Dear XXXXXXXXXX:

The Honourable Herb Dhaliwal, Minister of National Revenue, has asked me to respond to your letter of September 25, 1997, addressed to your member of Parliament, XXXXXXXXXX, concerning the disallowance of the disability tax credit in respect of individuals suffering from diabetes. A copy of your letter was forwarded to Mr. Dhaliwal by the Honourable Allan Rock, Minister of Health.

The rules relating to the disability tax credit are set out in section 118.3 of the Income Tax Act. This section provides a tax credit in respect of individuals with a severe and prolonged mental or physical impairment which markedly restricts one or more of the individual’s basic activities of daily living. For this purpose, the terms “markedly restricted” and “basic activity of daily living” are defined in the Act. Paragraph 2 of the enclosed Interpretation Bulletin IT-519R, Medical Expense and Disability Tax Credits and the Attendant Care Expense Deduction, explains these terms.

A medical certificate is required to establish that an individual’s ability to perform a basic activity of daily living is markedly restricted. As the facts of each case will vary, departmental officials cannot conclusively indicate whether an individual with diabetes will qualify for the disability tax credit. It is our understanding however, that the conditions often associated with diabetes do not ordinarily markedly restrict the individual's basic activities of daily living, as those terms are defined in the Act, although they do impose a burden on the individual and his or her family.

In order to make the disability tax credit more universally accessible to individuals with diabetes, a change to the Act would be required. As the Department of Finance is responsible for making amendments to the Income Tax Act, and a copy of your letter was also sent to the Honourable Paul Martin, Minister of Finance, I am certain your views will receive every consideration.

You should note that, as stated in paragraph 59 of IT- 519R, certain costs incurred specifically in relation to the treatment or diagnosis of diabetes, including insulin, diagnostic tapes or tablets, qualify as a medical expense for the purpose of the medical expense tax credit.

I trust my comments and the bulletin explain the

Department’s position in this matter.

Yours sincerely,

Denis Lefebvre
Assistant Deputy Minister
Policy and Legislation Branch

Enclosure

A. Humenuk
957-2134
February 24, 1998