We have a client, who pays for their mother in laws medical aid, the mother in law is financially dependent on her 4 children, so can my client that pays her medical aid get the deduction? Furthermore the Mother in law has to now go for a big operation, a
Important:
This answer is based on tax law for the tax year ending 28 February 2019.
Answer:
With effect from 1 March 2018, the medical scheme fees tax credit applies in respect of fees paid by the person to a medical scheme registered under the Medical Schemes Act … that relate to benefits from that fund in respect of that person or of any person that is a dependant of that person.
For the purposes of this section a 'dependant' in relation to a person means a 'dependant' as defined in section 6B(1).
The section 6B definition reads as follows:
'dependant' means –
-
a person's spouse;
-
a person's child and the child of his or her spouse;
-
any other member of a person's family in respect of whom he or she is liable for family care and support; or
-
any other person who is recognised as a dependant of that person in terms of the rules of a medical scheme or fund contemplated in section 6A(2)(a)(i) or (ii),
at the time the fees contemplated in section 6A(2)(a) were paid, the amounts contemplated in paragraph (a) and (b) of the definition of 'qualifying medical expenses' were paid or the expenditure contemplated in paragraph (c) of that definition was incurred and paid.
Relevant to your request is item (c). You need to determine, give an opinion, whether the mother-in-law is “any other member of a person’s family in respect of whom he or she is liable for family care and support” – the relationship between the person paying and the child is in issue here. SARS, in their guide (Issue 10), states that “the phrase “any other member of a person’s family” includes relations by blood, adoption and marriage etc.”