23 March 1998 External T.I. 9807075 - FULL TIME ATTENDANT EXPENSES

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.

XXXXXXXXXX

Attention: XXXXXXXXXX

March 23, 1998

Dear XXXXXXXXXX:

Re: IT-519R Medical Expense and Disability
Tax Credits and Attendant Care Expense Deduction

This is in reply to your letter of February 9, 1998 wherein you observed that information provided on the Internet was

(a) unclear in so far as whether an individual could have either a full-time attendant or one or more part-time attendants, as long as the medical expenses stayed within the maximum limit of $5,000 and

(b) not up to date inasmuch as a Notice of Ways and Means Motion in the February 18, 1997 federal budget increases the attendant care expense claim to a maximum of $10,000 from $5,000 (and to $20,000 from $10,000 where the individual died in the year) for 1997 and later taxation years.

Your reference to the maximum of $5,000 suggests that you are concerned with the claim for remuneration for attendant care as permitted under paragraph 118.2(2)(b.1) and as discussed in par.27 of the bulletin. par.27 explains that while most of the claims under paragraph 118.2(2)(b.1) will be for a part-time attendant, a full-time attendant could also be claimed under that provision as long as the dollar limit is observed.

The Interpretation Bulletins at the internet site are the electronic copies of the published bulletins. The second section of the Explanation of Changes (captioned "Overview" in IT-519R) notes the date to which legislative changes are reflected in the bulletin. In IT-519R, that date is January 25, 1995. As bulletins are revised, a new introduction will be added to alert readers that legislative changes introduced and court decisions rendered after the date of the bulletin should be considered when determining the relevancy of the comments in the bulletin.

The amendment, which would increase the attendant care expense claim to $10,000 from $5,000 (and to $20,000 from $10,000 where the individual died in the year), is included in Bill C-28 which was given First reading in the House of Commons on December 10, 1997. The Bill has yet to be enacted.

We are in the process of revising IT-519R. The amendments proposed in Bill C-28 will be reflected in the new bulletin.

We trust our comments will be of assistance to you.

Yours truly,

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