Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
eligibility of inter-urban travel costs for cancer patients as a medical expense
Position:
doesn't qualify
Reasons:
medical travel only qualifies if service is not available within 40 or 80 kms respectively
MINISTER/DEPUTY MINISTER'S OFFICE 97-06466M ADM'S OFFICE RETURN TO 15TH FLOOR, ALBION TOWER February 3, 1998
XXXXXXXXXX
Dear Colleague:
I am writing in response to your letter of October 23, 1997, written on behalf of XXXXXXXXXX, regarding travel costs incurred to obtain medical services.
The Income Tax Act provides tax assistance in the form of a medical expense tax credit for certain medical expenses incurred by an individual. Although an individual may incur various costs in the course of obtaining medical treatment, only the costs described in the Act qualify for the medical expense tax credit. Interpretation Bulletin IT-519R, a copy of which is enclosed, provides a description of the expenses that qualify for purposes of the tax credit.
As indicated in paragraphs 34 to 37 of the bulletin, the cost of travel to obtain medical services qualifies as a medical expense for income tax purposes when the medical service is provided at a location that is at least 40 kilometres from the patient's home and certain other conditions are met. If the distance between the place where the medical service is provided and the patient's home is more than 40 kilometres but less than 80 kilometres, the cost of using the patient's vehicle will qualify as a medical expense if the services of a person engaged in the business of transportation are not readily available. Accordingly, the cost of travel for medical purposes within an urban area is unlikely to qualify as an eligible expense for purposes of the medical expense tax credit.
I appreciate that it may not be practical for many patients receiving treatment for cancer to use public transportation to get to their appointments. However, the issue of whether a patient uses public transportation or makes other travel arrangements is of little consequence in an urban setting, since the distance travelled by the patient to obtain medical services is unlikely to exceed 40 kilometres. In order to allow such travel costs as medical expenses, a change in tax policy and an amendment to the Income Tax Act would be required. Since tax policy issues and amendments to the Act are the responsibility of the Department of Finance, any changes to the rules regarding the eligibility of travel costs as medical expenses would have to be considered by that department. In this regard, I can assure you that Finance officials are aware of this issue.
I hope my comments will assist you in replying to XXXXXXXXXX.
Yours sincerely,
Herb Dhaliwal, P.C., M.P.
Enclosure
c.c. The Honourable Paul Martin, P.C., M.P.
Minister of Finance
Minister’s Office
Political Assistant
A. Humenuk
957-2134
Finalized 97-11-28 DJ/lv
Finalized 97-12-30 SRD/lv