Principal Issues: [Tax Interpretations translation] Can a taxpayer claim the medical expense tax credit for the purchase of a scooter?
Position: In this case no.
Reasons: The purchase of a scooter will qualify for the medical expense tax credit where it is acquired in place of and instead of a conventional wheelchair, that is, where the taxpayer has difficulty in walking, or cannot walk.
XXXXXXXXXX 2010-037807
March 2, 2011
Dear Sir,
Subject: Tax credit for medical expenses – scooter
This is in response to your letter of May 25, 2010 in which you asked whether the cost of acquiring a scooter could qualify for the medical expense tax credit ("METC") under subsection 118.2(1) of the Income Tax Act (the "Act"). I apologize for the time required to answer your question.
Unless otherwise indicated, all statutory references herein are to the provisions of the Act.
Specifically, you described a situation of a taxpayer who, even if he can walk, cannot drive a car or walk long distances because of partial vision loss.
You wish to know if the taxpayer could claim the METC for the purchase of a scooter.
Our Comments
The situation you indicated in your letter appears to be related to a factual situation that concerns a specific taxpayer. As stated in paragraph 22 of Information Circular 70-6R5 of May 17, 2002, it is our practice not to issue a written opinion on proposed transactions otherwise than by way of advance rulings. Furthermore, when it comes to determining whether a completed transaction has received adequate tax treatment, the determination is made first by our Tax Services Offices as a result of their review of all facts and documents, which is usually performed as part of an audit engagement. However, we can offer the following general comments that we hope may be helpful to you.
Paragraph 118.2(2)(i) provides that a taxpayer may claim the METC for the purchase of a wheelchair. Paragraph 37 of Interpretation Bulletin IT519R2-CONSOLID, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, provides that the term "wheelchair" is not restricted to the conventional arm-powered or battery-powered wheelchairs but also includes scooters and wheel-mounted geriatric chairs.
The Canada Revenue Agency is of the view that a scooter qualifies as a "wheelchair" under paragraph 118.2(2)(i) only to the extent that it is acquired in place of and instead of a conventional wheelchair. XXXXXXXXXX.
Best regards,
François Bordeleau, LL.B.
Manager
Business and Partnerships Section
Business and Partnerships Division
Income Tax Rulings Directorate