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 expenses are medical expenses
Position: -insufficient facts to determine whether a particular expense is deductible since we have no information on the expenses, but the cost of a new vehicle every 2 years is not a medical expense
Reasons: must be described in ITA or Reg 5700not listed in ITA
2002-011987
XXXXXXXXXX Denise Dalphy, LL.B.
(613) 957-9231
February 6, 2002
Dear XXXXXXXXXX:
Re: Medical Expenses
We are writing in reply to your letter of January 6, 2002 and further to our letter dated November 29, 2001.
As you requested, we have enclosed a copy of Interpretation Bulletin IT-519R2, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction as well as a copy of Information Circular IC70-6R4, Advance Income Tax Rulings.
The confidentiality provisions of the Income Tax Act (the "Act") preclude us from discussing the income tax affairs of any taxpayer unless that person has provided us with an authorization to do so in writing. As such, we are unable to comment on the individual who you referred to in your letter.
As we indicated in our earlier letter to you, the expenses relating to an automobile that the Act regards as deductible "medical expenses" are limited. The specific provisions of the Act that allow for such deductions as follows:
"(f) [ambulance fees] - for transportation by ambulance to or from a public or licensed private hospital for the patient;
(g) [transportation] - to a person engaged in the business of providing transportation services, to the extent that the payment is made for the transportation of
(i) the patient, and
(ii) one individual who accompanied the patient, where the patient was, and has been certified by a medical practitioner to be, incapable of travelling without the assistance of an attendant from the locality where the patient dwells to a place, not less than 40 kilometres from that locality, where medical services are normally provided, or from that place to that locality, if
(iii) substantially equivalent medical services are not available in that locality,
(iv) the route travelled by the patient is, having regard to the circumstances, a reasonably direct route, and
(v) the patient travels to that place to obtain medical services for himself or herself and it is reasonable, having regard to the circumstances, for the patient to travel to that place to obtain those services;
(h) [travel expenses] - for reasonable travel expenses (other than expenses described in paragraph (g)) incurred in respect of the patient and, where the patient was, and has been certified by a medical practitioner to be, incapable of travelling without the assistance of an attendant, in respect of one individual who accompanied the patient, to obtain medical services in a place that is not less than 80 kilometres from the locality where the patient dwells if the circumstances described in subparagraphs (g)(iii), (iv) and (v) apply; ...
(l.6) [driveway alterations] - for reasonable expenses relating to alterations to the driveway of the principal place of residence of the patient who has a severe and prolonged mobility impairment, to facilitate the patient's access to a bus;
(l.7) [van for wheelchair] - for a van that, at the time of its acquisition or within 6 months after that time, has been adapted for the transportation of the patient who requires the use of a wheelchair, to the extent of the lesser of $5,000 and 20% of the amount by which
(i) the amount paid for the acquisition of the van
exceeds
(ii) the portion, if any, of the amount referred to in subparagraph (i) that is included because of paragraph (m) in computing the individual's deduction under this section for any taxation year; ...
(m) [prescribed devices] - for any device or equipment for use by the patient that
(i) is of a prescribed kind,
(ii) is prescribed by a medical practitioner,
(iii) is not described in any other paragraph of this subsection, and
(iv) meets such conditions as may be prescribed as to its use or the reason for its acquisition,
to the extent that the amount so paid does not exceed the amount, if any, prescribed in respect of the device or equipment;"
The devices that relate to an automobile and are prescribed for the purposes of paragraph 118.2(2)(m) above are in section 5700 of the Income Tax Regulations (the "Regulations"). They are as follows:
"(m) power-operated lift or transportation equipment designed exclusively for use by, or for, a disabled individual to allow the individual access to different areas of a building or to assist the individual to gain access to a vehicle or to place the individual's wheelchair in or on a vehicle;
(n) device designed exclusively to enable an individual with a mobility impairment to operate a vehicle;"
As we mentioned in our earlier letter, these are described in paragraphs 31 to 34 of IT-519R2. If you are of the opinion that any of the above provisions may apply to your situation, we would encourage you to contact your local Tax Services Office which can consider your situation, since they have the expertise to make such factual determinations. If a complex issue of the proper legal interpretation of one of the above provisions of the Act or Regulations arises in a your situation, they have the discretion to request the assistance of Headquarters, Income Tax Rulings.
We do not know whether or not you require a wheelchair for mobility, but if this is the case the provision in paragraph 118.2(2)(l.7) may be helpful for you. However, we would emphasize that there is no provision in the Act that would allow a person to claim the full cost of acquiring a new automobile every two years as a "medical expense".
The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of Circular IC70-6R4, the above comments do not constitute an income tax ruling and accordingly are not binding on the Canada Customs and Revenue Agency. Our practice is to make this specific disclaimer in all instances in which we provide an opinion.
Yours truly,
Steve Tevlin
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
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