23 January 2008 Internal T.I. 2007-0255351I7 F - Frais médicaux - déplacement
Principal Issues: [TaxInterpretations translation] Do travel expenses incurred by the taxpayer to receive specific medical treatment qualify as a tax credit under paragraphs 118.2(2)(g) and (h) of the Act? We understand that similar medical treatment, but with higher risks and permanent sequelae, is available in the taxpayer's region.
Position: Possible.
January 23, 2008
Ottawa Tax Services Office Headquarters Income Tax Rulings Directorate Attention: Étienne Gosselin Nancy Turgeon, CGA
2007-025535
Related medical expenses
This is further to your email of September 26, 2007, in which you requested our opinion on the medical expense tax credit for travel expenses. You wish to know whether travel expenses incurred by the taxpayer to receive specific medical treatment qualify as a tax credit under paragraphs 118.2(2)(g) and (h) of the Income Tax Act (the “Act”). We understand that similar medical treatment with higher risks and permanent sequelae is available in the taxpayer's region.
Our Comments
The CRA's general position on the medical expense tax credit is set out in Interpretation Bulletin IT-519R2. In Interpretation E2002-0121825, we expressed the opinion that if the taxpayer provides a written certification from the taxpayer's physician that, in his or her opinion, on the basis of the taxpayer's medical condition, the taxpayer is unable to obtain substantially equivalent medical treatment, we are of the view that the travel expenses would be eligible. That is if all other conditions required by the Act relating to this tax credit are also satisfied; see paragraphs 31 and 33 of IT-519R2. We suggest that you recommend that the taxpayer obtain such written certification. This certificate should state the reasons why the physician is of the opinion that there are no adequate and appropriate medical services in the venue where the patient resides.
Access to Information
For your information, unless exempted, a copy of this memorandum will be severed using the Access to Information Act criteria and placed in the Canada Revenue Agency's electronic library. A severed copy will also be distributed to the commercial tax publishers for inclusion in their databases. The severing process will remove all material that is not subject to disclosure, including information that could disclose the identity of the taxpayer. Should your client request a copy of this memorandum, the electronic library version can be provided. Alternatively, the client may request a severed copy using the Privacy Act criteria, which does not remove client identity. Requests for this latter version should be made by you to Ms. Jackie Page at (819) 994-2898. A copy will be sent to you for delivery to the client.
Best regards,
Randy Hewlett
Manager
Business and Partnerships Section
Business and Partnerships Division
Income Tax Rulings Directorate.