22 February 2012 External T.I. 2012-0437331E5 - medical expenses - travel

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.

Principal Issues: Whether an individual can claim travel expenses as eligible medical expenses for purposes of the medical expense tax credit?

Position: Question of fact.

Reasons: Wording of paragraphs118.2(2)(g) and (h) as long as the requirements of those provisions are met.

XXXXXXXXXX 

											2012-043733

February 22, 2012

Dear XXXXXXXXXX :

Re: Medical Expense Tax Credit - Medical Travel Expenses

This is in response to your letter forwarded to us on February 20, 2012, from the XXXXXXXXXX Taxation Service office inquiring about whether you can claim travel expenses incurred for medical reasons.

In your letter, you indicate that you and you sister drove over XXXXXXXXXX kilometres in your car from your home to the hospital in another city where you had surgery. While you were in the hospital for two days, your sister stayed in a hotel and you paid for expenses for parking, accommodation and meals. You also incurred the cost of meals while travelling by car to and from your home to the hospital in another city. You are asking whether you can claim travel expenses for you and your sister.

Written confirmation of the tax consequences that apply to a particular fact situation is given by this Directorate only in the context of an advanced income tax ruling request submitted in the manner set out in Information Circular 70-6R5, Advanced Income Tax Rulings, dated May 17, 2002. This Information Circular and other Canada Revenue Agency publications can be accessed on the CRA Web site at www.cra-arc.gc.ca. However, we are prepared to provide the following general comments, which may be of assistance.

Our Comments

Under paragraph 118.2(2)(g) of the Act, an individual may claim as an eligible medical expense an amount paid to a person engaged in the business of providing transportation services, to the extent that the payment is made for the transportation of

(i) the patient, and
(ii) one individual who accompanied the patient, where the patient was, and has been certified by a medical practitioner to be, incapable of travelling without the assistance of an attendant from the locality where the patient dwells to a place, not less than 40 kilometres from that locality, where medical services are normally provided, or from that place to that locality, if
(iii) substantially equivalent medical services are not available in that locality,
(iv) the route travelled by the patient is, having regard to the circumstances, a reasonably direct route, and
(v) the patient travels to that place to obtain medical services for himself or herself and it is reasonable, having regard to the circumstances, for the patient to travel to that place to obtain those services.

In addition, under paragraph 118.2(2)(h) of the Act, an individual may claim an amount paid for reasonable travel expenses (for example, accommodation, meals and parking) incurred in respect of the patient and, where the patient was, and has been certified by a medical practitioner to be, incapable of travelling without the assistance of an attendant, in respect of one individual who accompanied the patient, to obtain medical services in a place that is not less than 80 kilometres from the locality where the patient dwells if the circumstances described in subparagraphs (g)(iii), (iv) and (v) above apply.

While it is a question of fact whether the above requirements are met, it is our view that the requirement in (iii) may be met even if medical services are available nearer to the individual's locality if, in the circumstances, it is reasonable for the individual to have travelled to the place where the medical services were obtained.

It is our view, based on the information provided, that the travel costs incurred likely qualify as medical expenses for purposes of the METC as long as the requirements set out above are met.

For meals and vehicle expenses, you can choose to use the detailed method or the simplified method for calculating meal and vehicle expenses. If you use the detailed method, you have to keep all receipts and records for your 12-month period. For accommodation expenses, you must provide receipts and you must be able to demonstrate that the amount paid for accommodation is necessary as a result of the distance travelled and your medical condition. You can claim the amount for accommodation as shown on your receipts. More information on this topic can be found on the Canada Revenue Agency's web site at: www.cra-arc.gc.ca.

We trust our comments will be of assistance.

Yours truly,

G. Moore
For Director
Trusts and Business Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch