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.