As the father is a direct family member the taxpayer may claim medical expenses paid on behalf of his father. Do nursing home qualify as an allowable medical deduction?
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
For purposes of the guidance that follows we accepted that the issue is whether the client qualifies for the additional medical expenses tax credit (section 6B of the Income Tax Act) – as the ability to make a deduction is no longer possible.
The first issue that is relevant then is the definition of ‘dependent’ in section 6B(1). We copy the relevant part for your convenience:
A “dependant” means … (c) any other member of a person’s family in respect of whom he or she is liable for family care and support. In the Explanatory Memorandum when this section was introduced into the Act the following example was given:
“Facts: A single taxpayer under 65 years of age, and not disabled, incurs medical expenses on behalf of his or her mother. This taxpayer is liable for family care and support in respect of his or her mother.
Result: The taxpayer will be able to add the expenditure incurred in respect of his or her mother to his own medical expenditure.”
Section 6B therefore doesn’t use the term ‘immediate family’ that was used in the repealed section 18.
The next issue is that the expenses must be ‘qualifying medical expenses’ as defined. In this respect “qualifying medical expenses” mean
(a) any amounts (other than amounts recoverable by a person or his or her spouse) which were paid by the person during the year of assessment to any duly registered—
(i) medical practitioner, dentist, optometrist, homeopath, naturopath, osteopath, herbalist, physiotherapist, chiropractor or orthopedist for professional services rendered or medicines supplied to the person or any dependant of the personÍž
(ii) nursing home or hospital or any duly registered or enrolled nurse, midwife or nursing assistant (or to any nursing agency in respect of the services of such a nurse, midwife or nursing assistant) in respect of the illness or confinement of the person or any dependant of the personÍž or
(iii) pharmacist for medicines supplied on the prescription of any person mentioned in subparagraph (i) for the person or any dependant of the person…