13 June 2003 External T.I. 2003-0021025 - medical expenses service

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 CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues: Whether the cost of guide or service dogs for the mentally handicapped and intellectually challenged qualifies for the medical expense tax credit.

Position: An amount paid for a specially trained animal qualifies for the medical expense tax credit only if the patient is blind or profoundly deaf or has a severe and prolonged impairment that markedly restricts the use of the patient's arms or legs.

Reasons: Paragraph 118.2(2)(l)

2003-002102
XXXXXXXXXX Lena Holloway, CA
613-957-2104
June 13, 2003

Dear XXXXXXXXXX:

Re: Medical Expense Tax Credit

We are writing in reply to your letter of May 28, 2003, requesting information on the medical expense tax credit.

Your letter explained that there are service dogs trained specifically for autistic children and others with severe intellectual handicap that these dogs help to overcome. You pointed out that Interpretation Bulletin, IT-519R2 states that expenses in respect of guide and hearing-ear dogs qualify as medical expenses where they are paid "on behalf of a patient who is blind, profoundly deaf or who has a severe and prolonged impairment that markedly restricts the use of the patient's arms or legs." You asked us whether expenses for guide and service dogs for autistic and other intellectually handicapped children would also qualify as medical expenses for the purpose of the medical expense tax credit.

Subsection 118.2(2) of the Income Tax Act (the "Act") lists the expenses that qualify for the medical expense tax credit. As you noted in your correspondence, some guide dog expenses are recognized as medical expenses. These are described in paragraph 118.2(2)(l), however, they are limited to an amount paid for a specially-trained animal on behalf of a patient who is blind or profoundly deaf or has a severe and prolonged impairment that markedly restricts the use of the patient's arms or legs. Subsection 118.2(2) does not allow for any other service dog expenses other than those described in paragraph 118.2(2)(l). Accordingly, the cost associated with service dogs specially trained to aid intellectually handicapped individuals or those with autism would not normally qualify for the medical expense tax credit.

Please note that our position in this matter is based strictly on the legislative provisions of the Act. As the primary responsibility for tax policy and legislation rests with the Department of Finance, we would encourage you to contact the Tax Legislation Branch of the Department of Finance and advise them of your concerns. It is our understanding that the Department of Finance is continually reviewing the legislation governing medical expenses to ensure that all proper costs incurred in connection with a medical disability are properly recognized for tax purposes. The address for correspondence is:

Mr. Brian Ernewein

Department of Finance Canada
Tax Legislation Division
140 O'Connor Street
Ottawa ON K1A 0G5

We regret our response could not be more favourable.

Yours truly,

D. Boychuk, LL.B
for Director
Business and Partnerships Division
Income Tax Rulings Directorate

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