7 November 2002 External T.I. 2002-0161665 - rick shaw medical expenses

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 a "Rick Shaw" is eligible for the medical expense tax credit. The "Rick Shaw" is designed for use as a bike trailer for disabled children and adults weighing up to 200 pounds and may be converted to a wheelchair by simply attaching the two front detachable wheels that come with it.

Position: Yes, if purchased for someone that requires a wheelchair.

Reasons: Based on the ordinary meaning of the term "wheelchair."

XXXXXXXXXX 2002-016166
J. Gibbons, CGA
November 7, 2002

Dear XXXXXXXXXX:

We are replying to your letter dated September 9, 2002 concerning whether the cost of a "Rick Shaw" is eligible for the medical expense tax credit. The "Rick Shaw" is designed for use as a bike trailer for disabled children and adults weighing up to 200 pounds. According to the brochure attached to your letter, the Rick Shaw may be converted to a wheelchair by simply attaching the two front detachable wheels that come with it.

In our view, the cost of a Rick Shaw is only eligible for the medical expense tax credit if it can be considered a "wheelchair" for purposes of paragraph 118.2(2)(i) of the Income Tax Act (the "Act"). Since the term "wheelchair" is not defined in the Act, reference must be made to its ordinary meaning. The Concise Oxford Dictionary - Tenth Edition describes a wheelchair as "a mobile wheeled chair for an invalid or disabled person," while Webster's Tenth New Collegiate Dictionary describes it as "a chair mounted on wheels esp. for the use of disabled persons." Based on these definitions, it is our view that the Rick Shaw, when equipped with its two front wheels, may be considered a wheelchair. On the other hand, without its front wheels, a Rick Shaw is simply a bike trailer and, in this capacity, would not be considered a wheelchair. Nonetheless, if an individual for which a Rick Shaw is purchased requires the use of a wheelchair, we are prepared to treat the cost of the Rick Shaw as a qualifying medical expense for purposes of the medical expense tax credit.

We trust that these comments will be of assistance.

Yours truly,

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

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