Date: 19991203
Docket: A-661-98
CORAM: STONE J.A.
ISAAC J.A.
SEXTON J.A.
BETWEEN:
| ATTORNEY GENERAL OF CANADA |
Applicant
- and -
Respondent
A-662-98
| ATTORNEY GENERAL OF CANADA |
Applicant
- and -
Respondent
Heard at Halifax, N.S., on Friday, December 3, 1999
Reasons for Judgment of the Court delivered from the Bench at Halifax, N.S., on Friday, December 3, 1999
REASONS FOR JUDGMENT OF THE COURT BY: SEXTON J.A.
Date: 19991203
Docket: A-661-98
CORAM: STONE, J.A.
ISAAC, J.A.
SEXTON, J.A.
BETWEEN:
ATTORNEY GENERAL OF CANADA
Applicant
- and -
JOAN MACISAAC
Respondent
A-662-98
ATTORNEY GENERAL OF CANADA
Applicant
KENNETH G. MORRISON
Respondent
REASONS FOR JUDGMENT OF THE COURT
(Reasons for Judgment of the Court delivered from the Bench at
Halifax, Nova Scotia, on Friday, December 3, 1999)
SEXTON, J.A.
I. The two applications A-661-98 and A-662-98 were heard together and these Reasons apply to both cases.
[2] The Respondents both suffered from serious medical conditions and claimed disability tax credits pursuant to Section 118.3 of the Income Tax Act. Their claims were disallowed because in the opinion of the Minister the physicians' answers did not comply with Section 118.3(1)(a.2) of the Income Tax Act. The relevant sections provide:
| 118.3 Credit for mental or physical impairment
(1) Where
(a) an individual has a severe and prolonged mental or physical impairment,
(a.1) the effects of the impairment are such that the individual's ability to perform a basic activity of daily living is markedly restricted,
(a.2) a medical doctor, or where the impairment is an impairment of sight, a medical doctor or an optometrist, has certified in prescribed form that the individual has a severe and prolonged mental or physical impairment the effects of which are such that the individuals's ability to perform a basic activity of daily living is markedly restricted,
(b) the individual has filed for a taxation year with the Minister the certificate described in paragraph (a.2), and
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118.3 Crédit d'impôt pour déficience mentale ou physique
(1) Le produit de la multiplication de 4118 $ par le taux de base pour l'année est déductible dans le calcul de l'impôt payable par un particulier en vertu de la présente partie pour une année d'imposition, si les conditions suivantes sont réunies:
a) le particulier a une déficience mentale ou physique grave et prolongée;
a.1) les effets de la déficience sont tels que la capacité du particulier d'accomplir une activité courante de la vie quotidienne est limitée de façon marquée;
a.2) un médecin en titre ou, s'il s'agit d'une déficience visuelle, un médecin en titre ou un optométriste atteste, sur formulaire prescrit, que le particulier a une déficience mentale ou physique grave et prolongée dont les effets sont tels que sa capacité d'accomplir une activité courante de la vie quotidienne est limitée de façon marquée;
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| (c) no amount in respect of remuneration for an attendant or care in a nursing home, in respect of the individual, is included in calculating a deduction under section 118.2 (otherwise than because of paragraph 118.2(2)(b.1) for the year by the individual or by any other person,
for the purposes of computing the tax payable under this Part by the individual for the year, there may be deducted an amount determined by the formula
A x $4,118
where
A is the appropriate percentage for the year.
.....
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b) le particulier présente au ministre l'attestation visée à l'alinéa a.2) pour une année d'impostion;
c) aucun montant représentant soit une rémunération versée à un préposé aux soins du particulier, soit des frais de séjour du particulier dans une maison de santé ou de repos, n'est inclus par le particulier ou par une autre personne dans le calcul d'une déduction en application de l'article 118.2 pour l'année (autrement que par application de l'alinéa 118.2(2)(bl1).
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| 118.4(1) For the purposes of subsection 6(16), sections 118.2 and 118.3 and this subsection,
(a) an impairment is prolonged where it has lasted, or can reasonably be expected to last, for a continuous period of at least 12 months;
(b) an individual's ability to perform a basic activity of daily living is markedly restricted only where all or substantially all of the time, even with therapy and the use of appropriate devices and medication, the individual is blind or is unable (or requires an inordinate amount of time) to perform a basic activity of daily living;
(c) a basic activity of daily living in relation to an individual means
(i) perceiving, thinking and remembering,
| (ii) feeding and dressing oneself, |
| (iii) speaking so as to be understood, in a quiet setting, by another person familiar with the individual, |
| (iv) hearing so as to understand, in a quiet setting, another person familiar with the individual, |
| (v) eliminating (bowel or bladder functions), or |
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118.4(1) Pour l'application du paragraphe 6(16), des articles 118.2 et 118.3 et du présent paragraphe:
a) une déficience est prolongée si elle dure au moins 12 mois d'affilée ou s'il est raisonnable de s'attendre à ce qu'elle dure au moins 12 mois d'affilée;
b) la capacité d'un particulier d'accomplir une activité courante de la vie quotidienne est limitée de façon marquée seulement si, même avec des soins thérapeutiques et l'aide des appareils et des médicaments indiqués, il est toujours ou presque toujours aveugle ou incapable d'accomplir une activité courante de la vie quotidienne sans y consacrer un temps excessif;
c) sont des activités courantes de la vie quotidienne pour un particulier;
| (i) la perception, la réflexion et la mémoire, |
| (ii) le fait de s'alimenter et de s'habiller, |
| (iii) le fait de parler de façon à se faire comprendre, dans un endroit calme, par une personne de sa connaissance, |
| (iv) le fait d'entendre de façon à comprendre, dans un endroit calme, une personne de sa connaissance, |
| (v) les fonctions d"évacuation intestinale ou vésicale, |
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(d) for greater certainty, no other activity, including working, housekeeping or a social or recreational activity shall be considered as a basic activity of daily living.
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d) it est entendu qu'aucune autre activité, y compris le travail, les travaux ménagers et les activités sociales ou récréatives, n'est considérée comme une activité courante de la vie quotidienne.
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| [3] Revenue Canada issued T-2201 Forms to be completed by doctors who have examined |
applicants for disability tax credits. Those forms were filled out in both cases but it is unclear to us as to whether they are in compliance with the above sections.
[4] The Tax Court Judge allowed both appeals on the basis that in his judgment both Respondents met the criteria established by Section 118.4(1). In considering the forms at issue in this appeal he said in the Morrison case:
| "I have therefore concluded that the requirement in paragraph 118.3(1)(a.2) is directory only, and not mandatory." |
| [5] While we sympathize with both Respondents and with the position taken by the Tax |
Court Judge we cannot agree with him on this question. Section 118.3(1)(a.2) of the Income Tax Act is not merely directory. It is mandatory. Simply put, there must be a certificate by the doctor that the individual suffers impairments in the language of these subsections. This Court held to the same effect in Partanen v. Canada, [1999] F.C.J. 751 and we feel bound by this decision.
[6] It is not obvious that putting the questions as they are in this form results in a thorough consideration by the doctor of the questions confronting him. Putting checks in boxes is perhaps not the best way of eliciting a just result. Nevertheless the Act requires such certificates as a prerequisite to obtaining disability tax credits.
[7] We would therefore allow these applications and refer the matters back to the Tax Court of Canada for new trials in which new evidence may be lead having regard to these Reasons. A copy of these Reasons will be filed in each file and be dispositive of the applications.
"J. Edgar Sexton"
J.A.
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