29 March 1990 Income Tax Severed Letter AC59566 - Food and Entertainment Expenses Limitation

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.

19(1) J. Jones
(613) 957-2104

March 29, 1990

Dear Sirs:

Re: 80% Food and Entertainment Expense Limitation Paragraph 67.1(2)(e) of the Income Tax Act (the "Act") This is in reply to your letter of February 6, 1990, wherein you requested we review the information concerning the interpretation of paragraph 67.1(2)(e) of the Act as set out in our previous letter of June 6, 1989, and provide you with any updated comments.

We have reviewed the comments contained in our previous letter and advise we have made the Department of Finance aware of the points you gave raised but are unable to provide you with a definitive reply with respect to the specific situations raised in your letter.

We regret we are unable to be of assistance.

Yours truly,

for Director
Business and General Division
Specialty Rulings Directorate
Legislative and Intergovernmental
Affairs Branch

Document Disclosed Pursuant to the Access to Information Act Document Divulgué en vertu de la loi sur l'accès à l'informationLANGIND E DOCNUM AC59569 REPLACES TYPEKEY R AUTHORDV LEGS AUTHOR JJONES DESCKEY 5 RATEKEY 1 REFDATE 900329 ETADYEAR ETADSORT ADMINACC LEGS ACCESSLV LEGS99 SUBJECT Nursing home fees SECTION ITA-118.2(2)(d) SECTION SECTION SECTION SECTION $$$$

• 5- 9569

19(1) J.D. Jones
613-957-2104

March 29, 1990

Dear Sirs:

Re: Nursing Home Fees
Paragraph 118.2(2)(d) of the Income Tax Act (the "Act")

This is in reply to your letter of February 9, 1990, wherein you requested our opinion on the eligibility of nursing home fees for the medical expenses credit pursuant to paragraph 118.2(2)(d) of the Act.

Specifically, you wish to know whether the entire fee charged to a patient, who has a severe and prolonged mental or physical impairment that has been certified as such in prescribed form by a medical doctor, by a nursing home qualifies for the medical expense credit provided for under paragraph 118.2(2)(d) of the Act.

It is our view that, in the above situation, the total amount paid by an individual to a nursing home, including board and lodging, may qualify as a medical expense pursuant to paragraph 118.2(2)(d) of the Act. While there is no definition in the Act of a nursing home, it is expected that there would be qualified medical personnel in attendance of a calibre and in sufficient numbers to provide nursing care to the patients on a 24-hour basis. We also advise that the full-time care means constant care, whether active or precautionary. If, in fact, a payment to a nursing home otherwise qualifies as a medical expense under subsection 118.2(2) of the Act, it is our view that all reasonable fees paid to that nursing home for full-time care qualify as a medical expense whether the fees include an amount for food, accommodation or nursing care. Payment in respect of recreational services such as those normally found in a nursing home would also qualify. However, fees paid for identifiable personal expenses, such as hairdresser's fees, would not qualify as a medical expense.

We trust our comments are of assistance to you.

Yours truly,

for Director
Business and General Division
Specialty Rulings Directorate
Legislative and Intergovernmental
Affairs Branch

Document Disclosed Pursuant to the Access to Information Act Document Divulgué en vertu de la loi sur l'accès à l'information