CRA’s Pacific Tax Services Offices really like to get nasty.

Now they are attacking the travel expenses occurred by sick Canadians who need medical help. 

CRA is claiming that only the actual “travel expenses” are deductible.  I guess that means if you sleep over night at a hotel on the way, that would also not be traveling… it would be sleeping and as such not deductible. Also that a business trip would exclude destination expenses?

For heavens sake!  How ridiculous is it that this relentless attack on the pocket books of Canadians go on? and on???? Is there no limit to how far our government agency can go on?  If you check out horror stories at [1] www.taxauditsolutions.ca   you will get a sampling of the stress Canadians are going through.

CRA counts on the fact that most Canadians are employees… however now the assault has spilled over from small business to rental incomes, medical expenses and the search for reasons to deny mothers their child tax credits.

When CRA attacks mothers and the sick … that makes CRA look like “one sick mother.!”

See files from the BC Interior News

Feds wipe out medical travel deductions

Published: October 11, 2010 7:00 AM

A recent policy change within the Canada Revenue Agency (CRA) means that costs incurred while in another town for medical reasons won’t be covered, apart from the actual cost of getting there.

That’s according to Smithers Chartered Accountant Michael Mehr, who has written a letter to local governments on the issue.

“Everyone is entitled a claim a tax credit for medical expenses, including travel,” Mehr explained. “Internally, CRA has decided that the definition of travel does not include the time you spend in the other municipality that you go to to obtain those medical services.”

For an example, someone getting in their car and going to Vancouver for a procedure will have the gas and food along the way covered in tax breaks for the trip down. But any hotel stay or food purchased while there is not covered.

“CRA will allow you to claim your travel back the day you leave but those five days you spent there they feel don’t meet the definition of the word travel because in their minds they’re suggesting you’ve reached your destination.”

For the Northwest, Mehr said it could mean a significant hit to the pocket book; across the region it can add up to tens of thousands of dollars.

“You can imagine up here there’s a fair amount of travel for medical purposes and the way the medical system, especially now, is working … it’s very difficult to go down there for a day and return,” he said.

Mehr is looking for political support: letters are being sent to every hospital board in the province, and B.C. municipalities are also being requested to provide their support.

He has sent a letter to the City of Terrace, who will be dealing with the issue in tomorrow’s council meeting.

With files from the Interior News