A large percentage of your clients will find themselves, at some point, having to travel to help care for an ill family member. A recent decision from the Tax Court of Canada has ruled that a husband who spent several months travelling 120 kilometres almost every day to help his wife, is entitled to deduct the cost of that travel. The amount claimed was $14,883.
The decision (Jordan v. The Queen) dealt with a taxpayer in Weyburn, Saskatchewan whose wife suffered a brain aneurysm at the age of 48. She suffered brain damage and had to be moved to a hospital and then long-term care facility in Regina. The husband travelled almost daily to assist in her recovery, taking an extended leave from his job to do so. He eventually went back to work part-time and continued to visit her. His wife, who required extensive therapy, in which the husband participated, was in Regina from March to September, 2010.
The Income Tax Act (s. 118.2 (2) (h)) provides that medical expenses may be claimed for travel expenses for one person to aid in the recovery of a spouse.
The Crown argued that the deduction is only available when the person making the claim actually accompanies the patient and the patient is unable to travel alone. However, the court referred to a prior decision to conclude that this is not the case. It also noted that the provision in the ITA is “broadly worded and ambiguous.”
The court also noted that the Crown may have decided to disallow the claim because of the extended time during which the travel took place and the high value of the expenses that were incurred. It also argued that the husband’s presence was not necessary in the wife’s recovery.
The court disagreed, holding for the taxpayer and noting: “The evidence in this case leaves no doubt that Ms. Jordan was required to receive medical treatment in Regina for a protracted length of time and that Mr. Jordan’s daily presence contributed significantly to her recovery.”