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 pre-determined daily amounts qualify as medical expenses under paragraph 118.2(2)(h)?
Position: No.
Reasons: An expense must be incurred.
XXXXXXXXXX 991712
Wm. P. Guglich
Attention: XXXXXXXXXX
July 14, 1999
Dear Sirs:
Re: Pre-Determined Daily Amount for Accommodation for Patient and Attendant
This is in reply to your letter of June 9, 1999, requesting that we reconsider our position, as stated in our letter dated April 6, 1999, regarding qualification of pre-determined daily amounts for accommodation as medical expenses under paragraph 118.2(2)(h) of the Income Tax (the “Act”). We stated in our April 6, 1999 letter that payment of predetermined daily amounts for the accommodation of the patient and attendant, would not qualify as a medical expenses under paragraph 118.2(2)(h) of the Act, without an expense being incurred.
As explained in our earlier correspondence, paragraph 118.2(2)(h) of the Act specifically requires that the travel expenses be incurred in order to qualify as medical expenses. We are unaware of any provision in subsection 118.2(2) of the Act which would enable pre-determined daily amounts for accommodation of the patient and attendant to qualify as medical expenses, if an expense is not incurred.
We trust our comments will be of assistance to you.
Yours truly,
John Oulton
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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