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   Personal Tax Returns


   MEDICAL EXPENSE - OUTSIDE CANADA

   In an October 3, 2005 article in the Globe and Mail it was noted that an Ontario taxpayer was reimbursed for her medical expenses by the Ontario Hospital Insurance Plan (OHIP) under a decision of the Ontario Health Services Appeal and Review Board for a hip operation done in Florida. It was noted that the 18 to 24 month wait that she faced would have caused “medically significant irreversible tissue damage”. This follows a similar Ruling for a London, Ontario man who went to Port Huron, Michigan for a hip replacement.

If foreign medical expenses are not reimbursed by government authorities, they are usually allowed as a medical expense credit on the Canadian personal tax return.

Also, the transportation costs for the taxpayer and a required attendant may qualify but CRA may request from the taxpayer a letter provided by a medical practitioner in Canada that equivalent medical services were not available at their Canadian location.

   MEDICAL EXPENSE - SPECIAL SCHOOL
In a November 25, 2005 Tax Court of Canada case, the taxpayer’s daughter had learning disabilities and attended a special school in Hamilton, Ontario to assist her in overcoming these disabilities.

CRA allowed the tuition fees as a medical expense. The Tax Court also allowed the travel expenses incurred in driving the daughter to the school from her home in Simcoe each day.

   DISABILITY TAX CREDIT
In a November 7, 2005 Tax Court of Canada case, the taxpayer was allowed a Disability Tax Credit (DTC) in respect of her son who suffered from Attention Deficit Hyperactivity Disorder.

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