31 October 1989 Income Tax Severed Letter ACC8626 - Medical Expenses

October 31, 1989

         FROM - HEAD OFFICE
                Technical Interpretations Division
                G.D. Middleton
                (613) 957-9230

         TO - SAINT JOHN (N.B.) DISTRICT OFFICE
              R.D. Léger
              Director - Taxation

         SUBJECT: 19(1)

         We are forwarding a copy of the taxpayer's August 31,
         1989 letter to the Minister regarding the disallowance
         of certain medical expenses claimed by him in the years
         1985, 1986 and 1987.  In addition, the taxpayer has
         indicated that the Department shouldn't reassess any of
         the medical expenses claimed by him in 1988.  As a
         result of the October 12, 1989 memorandum from the Head
         Office Appeals Branch (copy attached), we are in the
         process of considering a remission of tax for     19(1)     .

         Would you please prepare a remission report in
         accordance with the guidelines set out in TOM 2263.24
         and provide us with any relevant information or
         correspondence which may assist us in our review,
         together with your recommendation as to whether
         remission should be favourably considered.

         In the preparation of your report, please focus on the
         nature and extent of "extreme hardship" or "financial
         setback" that would be suffered by the taxpayer should
         remission be denied.

         Furthermore, we would appreciate it if you could provide
         us with the following additional information:
         1.      24(1)

            Is there any correspondence in the taxpayer's returns
         or other files which would indicate that an official of
         the D.O. provided the taxpayer with such assurance?

         2. The taxpayer's T1 returns for the years 1984 to 1988.

         We look forward to receiving your report and
         recommendation in this matter.

         A.G. Cockell
         Director 
         Technical Interpretations Division
         Legislative and Intergovernmental 
            Affairs Branch