I would like to ask about Disability. I have a client who pays certain expenses for his disabled mother. My question is, can he claim these expenses? If so, where on the tax return do I put this in, as the return only refers to a spouse and or children, n
Important:
This answer is based on tax law year ending 28 February 2018.
Answer:
The Income Tax Act deals with it in section 6B. Remember also that there is no longer a deduction – the rebate will be available to the individual making the payment. The rebate is available to the person who paid the expenditure.
The first requirement that is relevant to your request is found in the definition of ‘dependant’ 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 Section 6B therefore doesn’t use the term ‘immediate family’ that was used in the repealed section 18.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. We copied the part we think may be relevant below:
“qualifying medical expenses” means—
(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—
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…;
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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 person …”
Remember also that in respect of “expenditure … necessarily incurred and paid in consequence of any physical impairment or disability suffered by the … any dependant …” the Confirmation of Diagnosis of Disability form (ITR-DD) is required. 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.