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.
Dear Sirs:
This is in reply to your letter of August 23, 1990 addressed to D. Doney of the St. Catharines District Taxation Office and further to your letter to us dated December 4, 1990 concerning the qualification of an adjustable bed sold under the trade name XXX as a “hospital bed” for purposes of paragraph 5700(h) of theIncome Tax Regulations.
XXX In your view, the only difference between a bed one normally sees in a hospital and a XXX bed is that the XXX bed is of a much higher quality.
In your letter of December 4, you enclosed a copy of an open letter dated April 19, 1989 from the XXX in Vancouver which states that disabled individuals and individuals with multiple sclerosis have found XXX beds to be very useful. This letter further states that people would not use the bed if they:
- • require overhead bars to be fixed to the bed,
- • approach the bed in the wheelchair and a footrest must go under the bed, or
- • must adjust the height of the bed.
Our Comments
In our opinion, a “hospital bed” as referred to in the above provision refers to the type of bed normally found in and used by patients in a hospital. The term is not intended to include all adjustable beds on the basis that they have, or could be made to have, similar features to beds normally found in a hospital.
As we understand it, your client's beds are not normally sold to, or used in, hospitals and accordingly would not qualify as a “hospital bed” within the meaning of that term in paragraph 5700(h) of the Income Tax Regulations.
We regret that our reply cannot be more favourable and trust that the foregoing comments adequately explain the Department's position on this matter.
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