INCOME TAX
Income Calculation
Deductions
Appeal from Tax Court of Canada decision (2004 TCC 523) concerning deductibility by taxpayer, who suffers from fibromyalgia, of cost of hot tub as medical expense tax credit—Whether hot tub “device that is designed to assist an individual in walking where the individual has a mobility impairment” under Income Tax Act, s. 118.2(2)(m)(i), Regulations, s. 5700(i)—Tax Court Judge finding hot tub “was, in these circumstances, designed, in part at least, for a therapeutic purpose assisting the appellant in walking, her fibromyalgia having produced a mobility impairment”— Finding of mixed fact and law—Appellant’s main contention provision can apply only to devices that “provide direct physical support to assist an individual in walking”, like canes, walkers—Language in section not supporting Crown’s position—Words in Regulations, s. 5700(i) stating “designed to assist”, not “exclusively designed” to assist—Sufficient if one of purposes of design to assist in walking, which Tax Court Judge held it was—Appeal dismissed—Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 118.2 (as am. by S.C. 1994, c. 7, Sch. II, s. 89)—Income Tax Regulations, C.R.C., c. 945, s. 5700(i) (as am. by SOR/90‑809, s. 1).
Canada v. Klywak (A‑521‑04, 2005 FCA 354, Linden J.A., judgment dated 28/10/05, 6 pp.)