Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note:Credit for mental or physical impairment

• 118.3 (1) Where

  • (a) an individual has one or more severe and prolonged impairments in physical or mental functions,

  • (a.1) the effects of the impairment or impairments are such that the individual’s ability to perform more than one basic activity of daily living is significantly restricted where the cumulative effect of those restrictions is equivalent to having a marked restriction in the ability to perform a basic activity of daily living or are such that the individual’s ability to perform a basic activity of daily living is markedly restricted or would be markedly restricted but for therapy that

    • (i) is essential to sustain a vital function of the individual,

    • (ii) is required to be administered at least two times each week for a total duration averaging not less than 14 hours a week, and

    • (iii) cannot reasonably be expected to be of significant benefit to persons who are not so impaired,

  • (a.2) in the case of an impairment in physical or mental functions the effects of which are such that the individual’s ability to perform a single basic activity of daily living is markedly restricted or would be so restricted but for therapy referred to in paragraph (a.1), a medical practitioner has certified in prescribed form that the impairment is a severe and prolonged impairment in physical or mental functions the effects of which are such that the individual’s ability to perform a basic activity of daily living is markedly restricted or would be markedly restricted, but for therapy referred to in paragraph (a.1), where the medical practitioner is a medical doctor, a nurse practitioner or, in the case of

    • (i) a sight impairment, an optometrist,

    • (ii) a speech impairment, a speech-language pathologist,

    • (iii) a hearing impairment, an audiologist,

    • (iv) an impairment with respect to an individual’s ability in feeding or dressing themself, an occupational therapist,

    • (v) an impairment with respect to an individual’s ability in walking, an occupational therapist, or after February 22, 2005, a physiotherapist, and

    • (vi) an impairment with respect to an individual’s ability in mental functions necessary for everyday life, a psychologist,

  • (a.3) in the case of one or more impairments in physical or mental functions the effects of which are such that the individual’s ability to perform more than one basic activity of daily living is significantly restricted, a medical practitioner has certified in prescribed form that the impairment or impairments are severe and prolonged impairments in physical or mental functions the effects of which are such that the individual’s ability to perform more than one basic activity of daily living is significantly restricted and that the cumulative effect of those restrictions is equivalent to having a marked restriction in the ability to perform a single basic activity of daily living, where the medical practitioner is, in the case of

    • (i) an impairment with respect to the individual’s ability in feeding or dressing themself, or in walking, a medical doctor, a nurse practitioner or an occupational therapist, and

    • (ii) in the case of any other impairment, a medical doctor or nurse practitioner,

  • (b) the individual has filed for a taxation year with the Minister the certificate described in paragraph (a.2) or (a.3), and

  • (c) no amount in respect of remuneration for an attendant or care in a nursing home, in respect of the individual, is included in calculating a deduction under section 118.2 (otherwise than because of paragraph 118.2(2)(b.1)) for the year by the individual or by any other person,

  there may be deducted in computing the individual’s tax payable under this Part for the year the amount determined by the formula

  A × (B + C)

  where

  A

  is the appropriate percentage for the year,

  B

  is $6,000, and

  C

  is

  • (a) where the individual has not attained the age of 18 years before the end of the year, the amount, if any, by which

    • (i) $3,500

    exceeds

    • (ii) the amount, if any, by which

      • (A) the total of all amounts each of which is an amount paid in the year for the care or supervision of the individual and included in computing a deduction under section 63, 64 or 118.2 for a taxation year

      exceeds

      • (B) $2,050, and

  • (b) in any other case, zero.

• Marginal note:Time spent on therapy

  (1.1) For the purpose of paragraph 118.3(1)(a.1), in determining whether therapy is required to be administered at least two times each week for a total duration averaging not less than an average of 14 hours a week, the time spent on administering therapy

  • (a) includes only time spent on activities that require the individual to take time away from normal everyday activities in order to receive the therapy;

  • (b) in the case of therapy that requires

    • (i) a regular dosage of medication that is required to be adjusted on a daily basis, includes time spent on activities that are directly related to the determination of the dosage of the medication, and

    • (ii) the daily consumption of a medical food or medical formula to limit intake of a particular compound to levels required for the proper development or functioning of the body, includes the time spent on activities that are directly related to the determination of the amount of the compound that can be safely consumed;

  • (c) in the case of

    • (i) a child who is unable to perform the activities related to the administration of the therapy as a result of the child’s age, includes the time spent by another person to perform or supervise those activities for the child, and

    • (ii) an individual who is unable to perform the activities related to the administration of the therapy because of the effects of an impairment or impairments in physical or mental functions, includes the time required to be spent by another person to assist the individual in performing those activities; and

  • (d) does not include time spent on

    • (i) activities (other than activities described in paragraph (b)) related to dietary or exercise restrictions or regimes,

    • (ii) travel time,

    • (iii) medical appointments (other than medical appointments to receive therapy or to determine the daily dosage of medication, medical food or medical formula),

    • (iv) shopping for medication, or

    • (v) recuperation after therapy (other than medically required recuperation).

• Marginal note:Deeming

  (1.2) Despite subsection (1.1), an individual who is diagnosed with type 1 diabetes mellitus is deemed to require therapy to be administered at least two times each week for a total duration averaging not less than 14 hours a week.

• Marginal note:Dependant having impairment

  (2) Where

  • (a) an individual has, in respect of a person (other than a person in respect of whom the person’s spouse or common-law partner deducts for a taxation year an amount under section 118 or 118.8) who is resident in Canada at any time in the year and who is entitled to deduct an amount under subsection (1) for the year,

    • (i) claimed for the year a deduction under subsection 118(1) because of

      • (A) paragraph (b) of the description of B in that subsection, or

      • (B) paragraph (d) of that description where the person is a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, nephew or niece of the individual, or of the individual’s spouse or common-law partner, or

    • (ii) could have claimed for the year a deduction referred to in subparagraph (i) in respect of the person if

      • (A) the person had no income for the year and had attained the age of 18 years before the end of the year, and

      • (B) in the case of a deduction referred to in clause (i)(A), the individual were not married or not in a common-law partnership, and

  • (b) no amount in respect of remuneration for an attendant, or care in a nursing home, because of that person’s mental or physical impairment, is included in calculating a deduction under section 118.2 (otherwise than under paragraph 118.2(2)(b.1)) for the year by the individual or by any other person,

  there may be deducted, for the purpose of computing the tax payable under this Part by the individual for the year, the amount, if any, by which

  • (c) the amount deductible under subsection 118.3(1) in computing that person’s tax payable under this Part for the year

  exceeds

  • (d) the amount of that person’s tax payable under this Part for the year computed before any deductions under this Division (other than under sections 118 to 118.07 and 118.7).

• Marginal note:Partial dependency

  (3) Where more than one individual is entitled to deduct an amount under subsection 118.3(2) for a taxation year in respect of the same person, the total of all amounts so deductible for the year shall not exceed the maximum amount that would be deductible under that subsection for the year by an individual in respect of that person if that individual were the only individual entitled to deduct an amount under that subsection in respect of that person, and where the individuals cannot agree as to what portion of the amount each can deduct, the Minister may fix the portions.

• Marginal note:Additional information

  (4) Where a claim under this section or under section 118.8 is made in respect of an individual’s impairment

  • (a) if the Minister requests in writing information with respect to the individual’s impairment, its effects on the individual and, where applicable, the therapy referred to in paragraph (1)(a.1) that is required to be administered, from any person referred to in subsection (1) or (2) or section 118.8 in connection with such a claim, that person shall provide the information so requested to the Minister in writing; and

  • (b) if the information referred to in paragraph (a) is provided by a person referred to in paragraph (1)(a.2) or (a.3), the information so provided is deemed to be included in a certificate in prescribed form.

Marginal note:Nature of impairment

• 118.4 (1) For the purposes of subsection 6(16), sections 118.2 and 118.3 and this subsection,

  • (a) an impairment is prolonged where it has lasted, or can reasonably be expected to last, for a continuous period of at least 12 months;

  • (b) an individual’s ability to perform a basic activity of daily living is markedly restricted only where all or substantially all of the time, even with therapy and the use of appropriate devices and medication, the individual is blind or is unable (or requires an inordinate amount of time) to perform a basic activity of daily living;

  • (b.1) an individual is considered to have the equivalent of a marked restriction in a basic activity of daily living only where all or substantially all of the time, even with therapy and the use of appropriate devices and medication, the individual’s ability to perform more than one basic activity of daily living (including for this purpose, the ability to see) is significantly restricted, and the cumulative effect of those restrictions is tantamount to the individual’s ability to perform a basic activity of daily living being markedly restricted;

  • (c) a basic activity of daily living in relation to an individual means

    • (i) mental functions necessary for everyday life,

    • (ii) feeding oneself or dressing oneself,

    • (iii) speaking so as to be understood, in a quiet setting, by another person familiar with the individual,

    • (iv) hearing so as to understand, in a quiet setting, another person familiar with the individual,

    • (v) eliminating (bowel or bladder functions), or

    • (vi) walking;

  • (c.1) mental functions necessary for everyday life include

    • (i) attention,

    • (ii) concentration,

    • (iii) memory,

    • (iv) judgement,

    • (v) perception of reality,

    • (vi) problem solving,

    • (vii) goal setting,

    • (viii) regulation of behaviour and emotions,

    • (ix) verbal and non-verbal comprehension, and

    • (x) adaptive functioning;

  • (d) for greater certainty, no other activity, including working, housekeeping or a social or recreational activity, shall be considered as a basic activity of daily living; and

  • (e) feeding oneself does not include

    • (i) any of the activities of identifying, finding, shopping for or otherwise procuring food, or

    • (ii) the activity of preparing food to the extent that the time associated with the activity would not have been necessary in the absence of a dietary restriction or regime; and

  • (f) dressing oneself does not include any of the activities of identifying, finding, shopping for or otherwise procuring clothing.

• Marginal note:Reference to medical practitioners, etc.

  (2) For the purposes of sections 63, 64, 118.2, 118.3 and 118.6, a reference to an audiologist, dentist, medical doctor, medical practitioner, nurse, nurse practitioner, occupational therapist, optometrist, pharmacist, physiotherapist, psychologist or speech-language pathologist is a reference to a person authorized to practise as such,

  • (a) where the reference is used in respect of a service rendered to a taxpayer, pursuant to the laws of the jurisdiction in which the service is rendered;

  • (b) where the reference is used in respect of a certificate issued by the person in respect of a taxpayer, pursuant to the laws of the jurisdiction in which the taxpayer resides or of a province; and

  • (c) where the reference is used in respect of a prescription issued by the person for property to be provided to or for the use of a taxpayer, pursuant to the laws of the jurisdiction in which the taxpayer resides, of a province or of the jurisdiction in which the property is provided.

Marginal note:Tuition credit

• 118.5 (1) Subject to subsection (1.2), for the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted,

  • (a) subject to subsection (1.1), where the individual was during the year a student enrolled at an educational institution in Canada that is

    • (i) a university, college or other educational institution providing courses at a post-secondary school level, or

    • (ii) certified by the Minister of Employment and Social Development to be an educational institution providing courses, other than courses designed for university credit, that furnish a person with skills for, or improve a person’s skills in, an occupation,

    an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees for the individual’s tuition paid in respect of the year to the educational institution, except to the extent that those fees

    • (ii.1) are paid to an educational institution described in subparagraph (i) in respect of courses that are not at the post-secondary school level, if

      • (A) the individual had not attained the age of 16 years before the end of the year, or

      • (B) the purpose of the individual’s enrolment at the institution cannot reasonably be regarded as being to provide the individual with skills, or to improve the individual’s skills, in an occupation,

    • (ii.2) are paid to an educational institution described in subparagraph (ii) if

      • (A) the individual had not attained the age of 16 years before the end of the year, or

      • (B) the purpose of the individual’s enrolment at the institution cannot reasonably be regarded as being to provide the individual with skills, or to improve the individual’s skills, in an occupation,

    • (iii) are paid on behalf of, or reimbursed to, the individual by the individual’s employer and the amount paid or reimbursed is not included in the individual’s income,

    • (iii.1) are fees in respect of which the individual is or was entitled to receive a reimbursement or any form of assistance under a program of Her Majesty in right of Canada or a province designed to facilitate the entry or re-entry of workers into the labour force, where the amount of the reimbursement or assistance is not included in computing the individual’s income,

    • (iv) were included as part of an allowance received by the individual’s parent on the individual’s behalf from an employer and are not included in computing the income of the parent by reason of subparagraph 6(1)(b)(ix), or

    • (v) are paid on the individual’s behalf, or are fees in respect of which the individual is or was entitled to receive a reimbursement, under a program of Her Majesty in right of Canada designed to assist athletes, where the payment or reimbursement is not included in computing the individual’s income;

  • (b) where the individual was during the year a student in full-time attendance at a university outside Canada in a course leading to a degree, an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees for the individual’s tuition paid in respect of the year to the university, except any such fees

    • (i) paid in respect of a course of less than three consecutive weeks duration,

    • (ii) paid on the individual’s behalf by the individual’s employer to the extent that the amount of the fees is not included in computing the individual’s income, or

    • (iii) paid on the individual’s behalf by the employer of the individual’s parent, to the extent that the amount of the fees is not included in computing the income of the parent by reason of subparagraph 6(1)(b)(ix);

  • (c) where the individual resided throughout the year in Canada near the boundary between Canada and the United States if the individual

    • (i) was at any time in the year a student enrolled at an educational institution in the United States that is a university, college or other educational institution providing courses at a post-secondary school level, and

    • (ii) commuted to that educational institution in the United States,

    an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees for the individual’s tuition paid in respect of the year to the educational institution if those fees exceeds $100, except to the extent that those fees

    • (iii) are paid on the individual’s behalf by the individual’s employer and are not included in computing the individual’s income, or

    • (iv) were included as part of an allowance received by the individual’s parent on the individual’s behalf from an employer and are not included in computing the income of the parent by reason of subparagraph 6(1)(b)(ix); and

  • (d) subject to subsection (1.1), if the individual has taken an examination (in this section referred to as an “occupational, trade or professional examination”) in the year that is required to obtain a professional status recognized under a federal or provincial statute, or to be licensed or certified as a tradesperson, where that status, licence or certification allows the individual to practise the profession or trade in Canada, an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees paid in respect of the occupational, trade or professional examination to an educational institution referred to in paragraph (a), a professional association, a provincial ministry or other similar institution, except to the extent that the occupational, trade or professional examination fees

    • (i) are paid on behalf of, or reimbursed to, the individual by the individual’s employer and the amount paid or reimbursed is not included in the individual’s income, or

    • (ii) are fees in respect of which the individual is or was entitled to receive a reimbursement or any form of assistance under a program of Her Majesty in right of Canada or a province designed to facilitate the entry or re-entry of workers into the labour force, where the amount of the reimbursement or assistance is not included in computing the individual’s income.

• Marginal note:Minimum amount

  (1.1) No amount may be deducted for a taxation year by an individual under paragraph (1)(a) or (d) in respect of any fees paid to a particular institution unless the total of the fees described in those paragraphs and paid to the particular institution in the year by the individual exceeds $100.

• Marginal note:Canada training credit reduction

  (1.2) The amount that may be deducted for a taxation year by an individual under subsection (1) is to be reduced by the amount determined by the formula

  A × B

  where

  A

  is the appropriate percentage for the taxation year; and

  B

  is the amount, if any, deemed to have been paid by the individual under subsection 122.91(1) in respect of the taxation year.

• Marginal note:Application to deemed residents

  (2) Where an individual is deemed by section 250 to be resident in Canada throughout all or part of a taxation year, in applying subsection (1) in respect of the individual for the period when the individual is so deemed to be resident in Canada, paragraph (1)(a) shall be read without reference to the words “in Canada”.

• Marginal note:Inclusion of ancillary fees and charges

  (3) For the purpose of this section, fees for an individual’s tuition includes ancillary fees and charges that are paid

  • (a) to an educational institution referred to in subparagraph 118.5(1)(a)(i), and

  • (b) in respect of the individual’s enrolment at the institution in a program at a post-secondary school level,

  but does not include

  • (c) any fee or charge to the extent that it is levied in respect of

    • (i) a student association,

    • (ii) property to be acquired by students,

    • (iii) services not ordinarily provided at educational institutions in Canada that offer courses at a post-secondary school level,

    • (iv) the provision of financial assistance to students, except to the extent that, if this Act were read without reference to subsection 56(3), the amount of the assistance would be required to be included in computing the income, and not be deductible in computing the taxable income, of the students to whom the assistance is provided, or

    • (v) the construction, renovation or maintenance of any building or facility, except to the extent that the building or facility is owned by the institution and used to provide

      • (A) courses at the post-secondary school level, or

      • (B) services for which, if fees or charges in respect of the services were required to be paid by all students of the institution, the fees or charges would be included because of this subsection in the fees for an individual’s tuition, and

  • (d) any fee or charge for a taxation year that, but for this paragraph, would be included because of this subsection in the fees for the individual’s tuition and that is not required to be paid by

    • (i) all of the institution’s full-time students, where the individual is a full-time student at the institution, and

    • (ii) all of the institution’s part-time students, where the individual is a part-time student at the institution,

    to the extent that the total for the year of all such fees and charges paid in respect of the individual’s enrolment at the institution exceeds $250.

• Marginal note:Ancillary fees and charges for examinations

  (4) For the purpose of this section, fees paid in respect of the occupational, trade or professional examination of an individual includes ancillary fees and charges, other than fees and charges included in subsection (3), that are paid to an educational institution referred to in subparagraph (1)(a)(i), a professional association, a provincial ministry or other similar institution, in respect of an occupation, trade or professional examination taken by the individual, but does not include any fee or charge to the extent that it is levied in respect of

  • (a) property to be acquired by an individual;

  • (b) the provision of financial assistance to an individual, except to the extent that, if this Act were read without reference to subsection 56(3), the financial assistance would be required to be included in computing the income, and would not be deductible in computing the taxable income, of the individual;

  • (c) the construction, renovation or maintenance of any building or facility; or

  • (d) any fee or charge for a taxation year that, but for this paragraph, would be included because of this subsection in the fees for the individual’s occupational, trade or professional examination and that is not required to be paid by all the individuals taking the occupational, trade or professional examination to the extent that the total for the year of all such fees and charges paid in respect of the individual’s fees for the occupational, trade or professional examination exceeds $250.