6 January 2004 External T.I. 2003-0047095 - integrated day care-medical expense

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues: Whether the cost of sending an autistic child to an integrated day care would qualify as a medical expense for income tax purposes.

Position: Question of fact.

Reasons: The child must be certified by an appropriately qualified person to be a person who, because of a physical or mental impairment, requires the equipment, facilities or personnel specially provided by that place.

XXXXXXXXXX 2003-004709
J. Gibbons, CGA
January 6, 2004

Dear XXXXXXXXXX:

This is in response to your letter dated October 2, 2003, to the Sudbury Tax Centre, which was forwarded to us for reply. In your letter, you requested an opinion as to whether the cost of sending your son to XXXXXXXXXX (the "Centre") would qualify as a medical expense for income tax purposes.

Your son suffers from an autistic disorder know as Asperger Syndrome, and qualifies for the Disability Tax Credit. According to a letter from XXXXXXXXXX of the Hospital for Sick Children, patients suffering from this disorder have difficulty developing social skills appropriate to their age level. Accordingly, XXXXXXXXXX strongly recommends that your son be placed in an "integrated day care setting" to provide him with the opportunity for increased social interaction with other children. You have asked whether the cost of sending your son to the Centre, which provides such an integrated day care setting, would qualify as a medical expense.

Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advanced income tax ruling request submitted in the manner set out in Information Circular 70-6R5. However, we have provided some general comments below, which we hope will be of some assistance to you.

Section 118.2 of the Income Tax Act (the "Act") provides rules for determining amounts that may be claimed, as a tax credit, in respect of medical expenses. Under paragraph 118.2(2)(e) of the Act, qualifying medical expenses include amounts paid for the care, or the care and training of a patient at a school, institution or other place where the patient has been certified by an appropriately qualified person to be a person who, because of a physical or mental impairment, requires the equipment, facilities or personnel specially provided by that place. As noted in paragraph 29 of Interpretation Bulletin IT-519R2, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, it is our view that the certification by the qualified person must either be specific as to the school, institution or other place that provides the specialized equipment, facilities or personnel, or be specific as to the type of equipment, facilities or personnel, which is needed to provide the care and training of a person with that particular type of physical or mental impairment.

In our view, the recommendation from XXXXXXXXXX that your son attend an integrated day care setting is not specific enough to satisfy the certification requirement outlined above. In order for the cost of the Centre to qualify as a medical expense, you would need to obtain certification which, either specifically identifies the specialized equipment, facilities or personnel (as provided by the Centre) that is required for the care or care and training of your son, or specifically identifies the Centre as an institution having the specialized equipment, facilities, or personnel to provide the care or care and training for a child with an autistic disorder.

We trust that these comments will be of assistance.

Yours truly,

Wayne Antle, CGA.

for Director
Business and Partnerships Division
Income Tax Rulings Directorate

cc David Larsen, Appeals Division
Sudbury Tax Services Office

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