29 January 2014 External T.I. 2013-0507021E5 - Medical Expenses - Tuition

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.

Principal Issues: Whether tuition fees paid for a child who has multiple severe food allergies would qualify as a medical expense?

Position: No.

Reasons: Does not meet the requirements under paragraph 118.2(2)(e).

XXXXXXXXXX
2013-050702
Janet Lew
(613) 957-2135
January 29, 2014

Dear XXXXXXXXXX:

Re: Medical Expense – Tuition Fees

This letter is in response to your letter dated April 22, 2013, which we received on September 26, 2013, in which you requested our comments regarding whether tuition fees paid to a private school for your son would qualify as a medical expense for the purpose of the medical expense tax credit ("METC").

You stated that your son has multiple severe food allergies that are anaphylactic. You did not enrol your son in the public school since you felt that the public school was not safe for your son. The public school provided a peanut-free environment, but could not guarantee a sesame-free environment. In XXXXXXXXXX, you enrolled your son in a private school that could provide a safe, allergen-free environment. You informed us that you received a Notice of Determination, dated XXXXXXXXXX, which stated that your son was not eligible for the disability tax credit.

This technical interpretation provides general comments about the provisions of the Income Tax Act ("Act") and related legislation (where referenced). It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R5, "Advance Income Tax Rulings."

Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of the Act. If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2), or if the requirements under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the METC, even though the expenditure may have been incurred for medical reasons.

Fees paid to a particular school may qualify as a medical expense under paragraph 118.2(2)(e) of the Act if certain requirements are met. These requirements are discussed in paragraphs 1.56 to 1.63 of the Income Tax Folio S1-F1-C1, "Medical Expense Tax Credit," which is available on our website at www.cra-arc.gc.ca. Paragraph 1.56 of the Income Tax Folio S1-F1-C1 states:

"The costs paid for the care, or the care and training of a patient at a school, an institution, or another place will be an eligible medical expense under paragraph 118.2(2)(e), provided that:

• the patient for whom the care or care and training is provided, suffers from a physical or mental handicap;
• the patient requires the equipment, facilities, or personnel specially provided by that school, institution, or other place for the care or the care and training of persons suffering from the handicap suffered by the patient; and
• an appropriately qualified person has certified in writing that the physical or mental handicap is the reason that the patient requires the equipment, facilities, or personnel specially provided by that school, institution, or other place, for the care or care and training of persons suffering from the same handicap, as the patient."

Based on the first two requirements, the student must be suffering from a physical or mental handicap, the severity of which is such that the student requires the equipment, facilities, or personnel specially provided by the school, for the care of the patient and other persons that are suffering from the same handicap.

Additionally, an appropriately qualified person, such as a medical practitioner or a principal of a private school, must certify in writing that the patient requires the specially provided equipment, facilities, or personnel.

Whether an amount qualifies as a medical expense is a question of fact that can only be determined after analyzing all the facts and circumstances. Based on the information provided, in our view, the requirements of paragraph 118.2(2)(e) of the Act have not been met. In particular, there is no clear indication that your son suffers from a known physical or mental handicap, and although the private school has taken measures to ensure an allergen-free environment, the school does not provide specialized equipment, facilities, or personnel for the medical care and training of your son.

We trust our comments will be of assistance.

Yours truly,

Sharmini Ratnasingham
Manager
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch