Principal Issues: 1. Taxpayer enquiry regarding rate setting process for the purposes of the medical expense tax credit.
Position: 1. Rate are set by the National Joint Council of the Public Service of Canada.
Reasons: 1. N/A.
XXXXXXXXXX
Dear XXXXXXXXXX:
Your member of Parliament, XXXXXXXXXX, wrote on your behalf and sent me a copy of your correspondence, which I received on April 24, 2013, about the kilometric rates the Canada Revenue Agency (CRA) uses to calculate travel expenses for medical purposes for Saskatchewan.
As I mentioned in my email of June 16, 2011, the kilometric rates the CRA uses to calculate travel expenses, including moving and medical expenses, are in line with Treasury Board of Canada Secretariat guidelines. The guidelines are based on the annual kilometric rates set by the National Joint Council (NJC) of the Public Service of Canada. The CRA has always accepted the NJC rates as fair and reasonable. The NJC determines the rates by analyzing new vehicle prices, depreciation and financing rates, current fuel prices, insurance premium rates, and operating costs in each province or territory. When these costs increase or decrease, the kilometric rates change accordingly.
You can find more information about the annual kilometric rates at www.njc-cnm.gc.ca/doc.php?did=117&lang=eng. This Web page includes links to the travel directive that sets out the kilometric rates for each Canadian province and territory.
I trust the information I have provided is helpful.
Yours sincerely,
Gail Shea, P.C., M.P.
Minister of National Revenue
c.c.: XXXXXXXXXX
Robert Dubis (905) 721-5191
2013-048715