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: Will payments made for the services provided by XXXXXXXXXX . qualify as medical expenses for purposes of subsection 118.2(2) of the Act?
Position: Likely not. However, there is insufficient information to make a definitive determination.
Reasons: There are several requirements to be met in order for a claim to succeed under paragraph 118.2(2)(e) of the Act. The information provided is not sufficient to determine if all the requirements can be met.
November 4, 1999
Edmonton Tax Services Office HEADQUARTERS
Ms Heather Gibbard Jacques E. Grisé
Business Window 957-2059
992541
XXXXXXXXXX
This is in reply to your note requesting our assistance in replying to a letter of September 9, 1999, you received from XXXXXXXXXX on whether payments for the services provided by XXXXXXXXXX could qualify as medical expenses.
XXXXXXXXXX
The only provision that may possibly have application to the payments is paragraph 118.2(2)(e) of the Income Tax Act (the Act). A basic requirement of paragraph 118.2(2)(e) of the Act is that the amount must be paid "for the care, or the care and training, at a school, institution or other place". XXXXXXXXXX does not elaborate on where XXXXXXXXXX services are to be provided. If they are not provided at a school or institution, they would need to be provided at a place that is substantially the same as a school or institution. XXXXXXXXXX letter outlines XXXXXXXXXX training program but does not indicate what, if any, care is to be provided to the recipients of the services. The basic requirement is not met if training is the only service provided.
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 a patient is not sufficient, in and of itself, to satisfy the requirements of paragraph 118.2(2)(e) of the Act. 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. As indicated in paragraph 32 of Interpretation Bulletin IT-519R, Medical expenses and disability tax credits and attendant care expense deduction, an "appropriately qualified person" includes a medical practitioner as well as any other person who has been given the required certification powers under provincial or federal law. Although Attention Deficit Disorder is a mental handicap for medical expense purposes, it is our understanding that there are varying degrees of this learning and behavioural disorder and that it is the more severe forms of the disorder that require the special facilities and personnel of a school, institution or other place that deals specifically with such individuals.
On the basis of the limited information we have, we are not in a position to provide you with a definitive answer to whether XXXXXXXXXX is an eligible "school, institution or other place" that provides care or care and training for the purposes of paragraph 118.2(2)(e) of the Act. If it does, it would then be incumbent on the users of its services to establish that they meet the other requirements of the provision.
For your information a copy of this memorandum will be severed using the Access to Information Act criteria and placed in the Legislation Access Database (LAD) on the Department's mainframe computer. A severed copy will also be distributed to the commercial tax publishers for inclusion in their databases. The severing process will remove all material that is not subject to disclosure, including information that could disclose the identity of the taxpayer. Should your client request a copy of this memorandum, they can be provided with the LAD version, or they may request a copy severed using the Privacy Act criteria, which does not remove client identity. Requests for this latter version should be made by you to Jackie Page at 613 957-0682. A copy will be sent to you for delivery to the client.
We hope our comments are helpful
John Oulton
Manager
Business, Property and Employment
Income Section III
Income Tax Rulings and
Interpretations Directorate
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