6 August 1992 External T.I. 9218615 F - PHSP Carryfoward Of Med Credits & Expenses, Access Lett

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.

Attention: 19(1)

August 6, 1992

Dear 19(1)

Re:  Private Health Services Plan

We are replying to your letter of June 11, 1992 concerning the issue of whether a private health services plan can permit the carry forward of unused medical expenses above a certain preset level to the next benefit year.

You refer to comments made in the publication, "The Access Letter", concerning an opinion offered by this Directorate in correspondence dated September 24, 1991 (our file reference E912309) on this subject.  The comments made in that publication suggest to you that our position on the carry forward of medical expenses in excess of a preset level to the next benefit year may have changed. 

Our position on private health services plans which permit a carry forward of medical expenses in excess of a plan's preset annual limit and the requirement that such plans contain a reasonable element of insurance has not changed from that expressed at the 1991 Corporate Management Tax Conference and in the Advance Income Tax Ruling ATR-23 dated July 14, 1987. 

Opinions offered in our correspondence are intended to address the specific situation or concern raised by the enquirer.  Such correspondence generally includes a proviso that the opinion rendered is based on the information provided in the incoming letter and that the opinion may not be applicable to other fact situations.  The opinion upon which the comments in "the Access Letter" were based addressed our concerns with a specific proposal for a plan which would have permitted the carry forward of both unused medical expenses and credits.  The plan did not, in our view, contain the necessary elements of insurance in order to be considered a private health services plan.

As stated above however, we caution you that our comments are general in nature only and may not apply to any particular fact situation and are thus not binding on the Department.  As stated in Information Circular 70-6R "Advance Income Tax Rulings" dated September 28, 1990, assurance in respect of any particular proposed transaction is given by way of an advance income tax ruling for which a charge is made.

We trust our comments will be of assistance to you.

Yours truly,

J.A. Szeszyckifor DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch