This same client has Multiple Sclerosis himself (it is a hereditary disease) and has subsequently been medically boarded due to the illness. He has had a SARS ITR-DD form completed by his neurologist and was allowed to claim his medical expenditure under
Important:
This answer is based on tax law year ending 28 February 2017.
Answer:
The first requirement that is relevant to your request is found in the definition of ‘dependent’ in section 6B(1) of the Income Tax Act. 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 Section 6B therefore doesn’t use the term ‘immediate family’ that was used in the repealed section 18.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’. This is defined in section 6B(1) of the Act. The section 6B(1)(c) requirement is that it must be “any expenditure that is prescribed by the Commissioner (other than expenditure recoverable by a person or his or her spouse) necessarily incurred and paid by the person during the year of assessment in consequence of any physical impairment or disability suffered by the person or any dependant of the person.” The important requirement here is that expenses must be expenses in consequence of any physical impairment or disability suffered by the taxpayer AND that the expenses must be the ones prescribed by SARS.
For each of the impairments in the definition of a “disability” in section 6B of the Act, SARS has prescribed diagnostic criteria. These criteria seek to assess the functional impact of the impairment on a person’s ability to perform daily activities and not the diagnosis of a medical condition. It is not a tax related issue to determine this.
It is our understanding that multiple sclerosis is “an unpredictable, often disabling disease of the central nervous system, interrupts the flow of information within the brain, and between the brain and body.” In the Guide on the Determination of Medical Tax Credits (Issue 9), SATS states that “physical impairments will, for example, include … brain dysfunctions such as dyslexia, hyperactivity or lack of concentration.”
A person who wishes to claim an AMTC for disability expenses must complete a Confirmation of Diagnosis of Disability form (ITR-DD). Part B of the ITR-DD must be completed by a duly registered medical practitioner who is qualified to express an opinion regarding the person’s disability. The practitioner needs to complete the appropriate diagnostic criteria.
In Part C of the ITR-DD the registered medical practitioner must –
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indicate and describe if the functional limitations with respect to performing activities of daily living are regarded as either “mild” or “moderate to severe”;
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indicate if the disability has lasted, or is expected to last for a continuous period of more than 12 months; and
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sign the declaration.
We agree with your view.