Financial Post - Canada; Sep 22,
2001
To claim medical expenses at tax
time, you simply add up your prescriptions and dental bills, and claim
the portion that's more than 3% of your net income, or $1,642, whichever
is less.
But the claim is also complicated
because the tax rules are changed constantly to help disabled Canadians
more. For those planning a renovation, it pays to call your accountant
before you call your carpenter.
Since 1990, if you have a prolonged
and severe mobility problem, you are allowed to claim reasonable home renovations,
if it allows you to get into or move around in your house. In 2000, a new
rule was introduced to allow you to claim the incremental construction
costs of building a new accessible home.
You could claim the cost of an air
or water filter if you suffer from a severe and chronic respiratory ailment,
since Dec. 17, 1991. Since 1992, you can claim the cost of a visual signalling
device such as a visual fire alarm, if you are hard of hearing. You can
also claim the cost of changing your driveway if it makes it easier for
you to get on to a bus, starting in 1997.
Also in 1997, you could claim the
lower of $1,000, or 50% of the cost of an air conditioner, if it helps
you to cope with a severe and chronic ailment or disorder. It is worth
telling you why we have this particular tax rule.
In 1983, Mary Brown of Toronto was
diagnosed with multiple sclerosis, which restricted her mobility. By chance,
she discovered that the cool air of a hockey rink helped her to walk. Her
doctor then told her to install an air conditioner at home, and that helped
her function "near normal."
Her husband, Nigel Brown, claimed
the cost of air conditioning on his 1984 tax return. Ottawa disallowed
the claim because the air conditioner was not a device that is designed
to assist in walking, according to the taxman.
Mrs. Brown did her homework, and
in a 1989 Tax Court of Canada case, she noted the air conditioner was first
invented by a Dr. John Gorrie of Florida in the mid-1840s as a medical
device. Dr. Gorrie discovered his patients benefited from the cooled air
in their hospital rooms.
She then argued the air conditioner
was a medical device designed to allow her to walk because it improved
her mobility. Judge Alexander Sarchuk ruled although the air conditioner
played a legitimate medical role, it was not designed as a walking aid
and disallowed the claim.
The Browns appealed their claim and
in 1994, at the Federal Court of Canada, Judge Sandra Simpson carefully
noted the tax rule did not say a device must be "exclusively designed"
for a purpose, just "designed." Without the word "exclusive," the judge
figured the rule anticipates a device that could be used for more than
just walking.
She also concluded that using an
air conditioner improves a patient's well-being, which includes walking.
She allowed Mr. Brown to claim the air conditioner.
After losing this federal appeal,
Ottawa caved in. Then it went the extra mile by allowing anyone with a
severe and chronic ailment, disease or disorder to claim the cost of an
air conditioner, provided it helps the patient to cope. But in a cool sleight
of hand, the claim was limited to $1,000.
All Material Subject to Copyright
BY ANDREW WONG