27 October 1998 External T.I. E9824915 - MED. EXP. - FEES PAID TO A PRIVATE SCHOOL.

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 fees paid to a private school for a patient who suffers from Attention Deficit Hyperactivity Disorder (ADHD) qualify as a medical expense under paragraph 118.2(2)(e).

Position: Question of fact. However, based on the report of the doctor the fees likely do not qualify.

Reasons: ADHD may not always constitute a mental handicap since ADHD symptoms may vary from one patient to the next. Taxpayer must demonstrate that severity of disorder is such that it constitutes a mental disorder.

XXXXXXXXXX 	J. Gibbons
		5-982491
October 27, 1998

Dear XXXXXXXXXX:

We are replying to your letter of September 8, 1998, in which you requested an advance income tax ruling with respect to whether certain expenses qualify as a medical expenses under the Income Tax Act.

Your specific question relates to fees paid to a private school, XXXXXXXXXX, on behalf of your step-son, who suffers from attention deficit hyperactivity disorder (ADHD). You indicate that you are seeking reimbursement for such fees from your Health Spending Account administered through your employer. Presumably, you want to ensure that the tuition fees qualify as medical expenses under paragraph 118.2(2)(e), for purposes of your employer’s private health services plan.

As indicated in Information Circular IC 70-6R3, an advance ruling request is not issued on transactions that are already completed. Accordingly, while we are unable to provide you with an advance ruling, we offer the following general comments. Please note that your deposit will be returned to you under separate cover.

Generally, fees paid to an institution for the care, or for the care and training, of a patient qualify as medical expenses under paragraph 118.2(2)(e) of the Act, where: (1) the particular institution provides equipment, facilities or personnel for the care or care and training of individuals suffering from the handicap suffered by the patient, and (2) the patient has been certified by an “appropriately qualified” person to be a person who, by reason of a physical or mental handicap, “requires” the equipment, facilities or personnel specially provided by the particular school, institution or other place.

According to a letter from XXXXXXXXXX, which was submitted with your ruling request, XXXXXXXXXX is a special needs school for learning-disabled students in Grades 1- 12. The letter indicates that XXXXXXXXXX and teachers must undergo training in this method and attend regular refresher courses. In addition to this method, the school also provides specific language development instruction to aid students in overcoming weaknesses in speech, reading, writing and comprehension often associated with disabilities such as attention deficit disorder. In our view, it is likely that XXXXXXXXXX may be considered to be a school that has equipment, facilities or personnel for the care or care and training of individuals suffering from ADHD.

The fact that a school institution or other place may be considered as specially providing equipment, facilities or personnel for the care or care and training of individuals suffering from the handicap suffered by the patient is not sufficient, in and of itself, to satisfy the requirements of paragraph 118.2(2)(e). The patient must be one who has been certified by an “appropriately qualified” person to be a person who, by reason of physical or mental handicap, “requires” the equipment, facilities or personnel specially provided by the particular school, institution or other place. In this regard, included with your ruling request was a “psychoeducational assessment” report by XXXXXXXXXX, a registered psychologist. According to our position in paragraphs 4 and 30 of IT-519R2, “Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction,” XXXXXXXXXX would be considered to be an “appropriately qualified person”. However, whether XXXXXXXXXX disorder would be considered a mental handicap is not without doubt since the severity of ADHD symptoms may vary from one patient to the next and may not always constitute a mental handicap. In each case, the taxpayer has the burden of proving that the requirements of paragraph 118.2(2)(e) have been met.

In his report, XXXXXXXXXX concludes that:

XXXXXXXXXX

In our view, XXXXXXXXXX report does not clearly demonstrate that your stepson’s ADHD constitutes a mental handicap. Further, the report does not clearly state that your stepson “requires” the equipment, facilities or personnel specially provided by XXXXXXXXXX . Rather, the report concludes that your stepson “needs to be placed in a small group learning situation either in the XXXXXXXXXX or at a school such as the XXXXXXXXXX

We trust that these comments will be of assistance.

Yours truly,

J.F. Oulton, CA
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
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