A client has a medical aid tax certificate which indicates medical claims not paid by the scheme (ie: self paid medical expenses). Would the client have to obtain invoices and proof of payments for these expenses if wanting to claim as a tax deduction or
Important:
This answer is based on tax law year ending 28 February 2019.
Answer:
SARS can, and often do, request relevant material with respect to qualifying medical expenses.
According to paragraph 4.1, of the Guide on the Determination of Medical Tax Credits (Issue 10), “the documentation that must be retained for audit purposes when an MTC or AMTC is claimed for a year of assessment is the following
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A statement from the medical scheme indicating the total amount of claims submitted to the fund that were not refunded to the taxpayer or paid by the scheme to the service provider. The medical statements, which are generally released by each medical scheme in February or March each year, usually reflect the total amount for the year of assessment. Taxpayers could be asked to prove that they have paid the amounts disclosed on the medical aid certificates.
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A completed list of amounts not submitted to or recoverable from the taxpayer’s medical scheme, together with proof of such amounts incurred and paid.
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A completed list of amounts not submitted to or recoverable from the taxpayer’s medical scheme, together with proof of such amounts incurred and paid.
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A letter from the taxpayer’s medical scheme, stating that the benefits allocated to certain medical procedures are exhausted, when applicable.