Canadian Income Tax Considerations

This summary is not exhaustive of all possible Canadian federal income tax considerations applicable to claiming medical and or disability tax credits. Furthermore, the income and other tax consequences of how medical expenses are claimed will vary depending on the patient's particular circumstances. Accordingly, this summary is of a general nature only and is not intended to be legal or tax advice to any prospective patient. Patients should consult their own tax advisors with respect to the tax consequences of claiming a medical expense tax credit based on their particular circumstances.

General Rules

Under Canadian income tax law an individual may deduct a medical expense tax credit. To qualify for the medical expense tax credit, the medical expenses must have been paid or deemed to have been paid by either the individual or his or her legal representative for qualifying medical expenses.

The Canadian Income Tax Act describes in detail the types of medical expenses that may qualify for the medical expense tax credit. Specifically, the Canadian Income Tax Act allows an individual to include, as a qualifying medical expense, an amount paid to a medical practitioner or a public or licensed private hospital for medical services provided. The personnel of the clinic are all licensed individuals and as such should qualify as medical practitioners under Canadian income tax law.

An individual's qualifying medical expenses are not restricted to those incurred or paid in Canada but they must have been paid on behalf of the individual, the individual's spouse or a dependant of the individual. As a result, the location of the clinic should not impact on the ability of the patient to claim a medical expense tax credit.

Transportation and Travel Expenses

The Canadian Income Tax Act also allows an individual to include, as qualifying medical expenses, reasonable travel expenses for a patient to obtain medical services if the patient travels to a place that is at least 80 kilometres away from the locality where he or she dwells to get the medical services provided substantially equivalent medical services are unavailable within the patient's locality; the patient takes a reasonably direct travel route; and it is reasonable, in the circumstances, for the patient to travel to that place for the medical services. The individual claiming travel expenses for the patient may also claim the same kinds of travel expenses for one individual to accompany the patient as long as the patient has been certified by a medical practitioner as being incapable of traveling without an attendant.