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:
1) Does the phrase "full-time attendant" require that there be no less than one full-time attendant 24 hours a day for each patient or can it apply for a group of patients?
2) Can more than one-full time attendant care for a group of patients provided the ratio does not exceed more than one attendant per patient?
Position:
1 and 2 ) Question of fact, case by case basis
Reasons:
1) Patient must qualify for the medical expense, a full-time attendant must provide the care that is required and the full-time attendant must be paid as remuneration .
XXXXXXXXXX 982264
C. Tremblay
Attention: XXXXXXXXXX
December 2, 1998
Dear Sir;
Re: Full-Time Attendant
This is in reply to your letter of August 17, 1998, and is a follow-up to our letter of June 26, 1998, concerning your request for an interpretation of paragraph 118.2(2)(b) of the Income Tax Act (the “Act”), regarding the meaning of “one full-time attendant.“
You ask us to confirm
(a) that the phrase “one full-time attendant” requires that there be not less than one 24 hour a day attendant care for each patient as long as there is at least one attendant caring for a group of patients (i.e. at least one “full time” attendant) 24 hours a day
and
(b) where there is more than one full-time attendant providing 24 hours a day care for a group of patients who share the costs of all of the attendants, the paragraph 118.2(2)(b) medical expense will be allowed to each patient for his or her portion of the shared costs provided that the attendant to patient ratio at no time exceeds one to one (i.e. provided that there is never more than one full-time attendant per patient).
Paragraph 118.2(2)(b) of the Act specifically includes as a medical expense, the amount paid as remuneration for “one” full-time attendant (other than a person who, at the time the remuneration is paid, is the individual's spouse or is under 18 years of age) on the patient where the patient has a severe and prolonged mental or physical impairment that has been certified in prescribed form by a medical doctor. In providing general comments on this provision, we are guided by the published comments in paragraph 24 of IT-519R2. It is the Department’s general position that several attendants could be utilized over a specified period of time to provide the care as long as the claim for income tax purposes included only one attendant for any portion of that period. You have clarified that the patient to attendant ratio never will exceed one to one i.e. there is never more than one full-time attendant per patient. That being the case, the expenses would likely qualify based on the comments in the second part of paragraph 24 of the bulletin.
We caution that our replies are not advance income tax rulings but are merely opinions based solely on the information given.
Yours truly.
J. F. Oulton, C A
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislative Branch
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