The deductibility of medical expenses relating to special care
06 November 2014
Posted by: Author: SAIT Technical
Author: SAIT Technical
Q: My Client is
88 years old sold her flat in an old age home a year ago to move to frail care.
She has Parkinson’s disease and can’t look after herself anymore. She must be
bathed and fed and cannot walk without assistance. The question is can the
frail care which is about R8000 per month, be claimed as a medical expense
under disability. If yes, must the doctor complete a ITR-DD form? He refused to
complete the form when we asked him, but with motivation from SAIT, I am sure
we can change his mind if it is deductible.
A: SAIT can’t, as
you request, provide a document to the medical practitioner to request
completion of the ITR-DD form. SARS sets
out the prescribed diagnostic criteria for a disability in paragraph 9.3 of the
Guide on the Determination of Medical Tax Credits and Allowances (Issue
4). The doctor must issue the ITR-DD in
accordance with the SARS prescriptions.
As defined (in paragraph (a)(ii)) ‘qualifying medical
expenses’ means any amounts (other than amounts recoverable by a person or his
or her spouse) which were paid by the person during the year of assessment to
any duly registered nursing home or hospital or any duly registered or enrolled
nurse, midwife or nursing assistant (or to any nursing agency in respect of the
services of such a nurse, midwife or nursing assistant) in respect of the
illness or confinement of the person or any dependant of the person…
In the prescribed list of expenditure for purposes of
section 18(1)(d) (disability) of the Act (see the SARS Guide on the
Determination of Medical Tax Credits and Allowances (Issue 4)) the following is
PERSONAL ATTENDANT CARE EXPENSES
Expenditure that is incurred and paid for purposes of
special care, for special services to assist, guide, care for a person with a
physical impairment or disability, regardless of the place the services are
rendered (for example home, nursing home, retirement home etc.)
Examples of expenditure in this category include nursing
services, special care for a person with a disability etc.
This will include salaries paid to care attendants, agency
fees if the care attendant is provided by an agency as well as fees for
professional services performed by, for example, nursing homes.
If the expenses are not qualifying expenses (paragraph
(a)(ii) ones) the ITR-DD is required to make the deduction.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.