13 March 2012 External T.I. 2012-0433661E5 F - Notion de dépense engagée -- summary under Subsection 118.2(2.1)

Cosmetic surgery is ineligible for the medical expense tax credit where the expense was “incurred” after March 4, 2010. In commenting on the meaning of “incurred,” CRA stated:

Wawang … stated:

[T]he correct question to ask, in determining whether a legal obligation is contingent at a particular point in time, is whether the legal obligation has come into existence at that time, or whether no obligation will come into existence until the occurrence of an event that may not occur.

We believe that the comments made on the concepts of "outlay or expense incurred" under paragraph 18(1)(a) can apply to expenses incurred for the purposes of the medical expense tax credit.

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d7 import status
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