CRA Reassessment – Senior Taxpayer Medical & Care Expense Victory
Case Overview
CRA reassessment targeting senior care-related deductions (medical, attendant care, facility care) spanning over 10 years of tax returns, in a situation where the relevant ITA provisions were unclear as applied to the taxpayer's specific circumstances.
Challenge
CRA reassessment of a senior taxpayer's over-10-year tax returns, targeting deducted senior-related expenses. The majority involved medical expenses, attendant care, and care in a facility. CRA denied these deductions, which would have resulted in tax owing plus penalties and interest.
Result
CRA agreed to all amended tax returns submitted by Ying Yang CPA Professional Corporation. Instead of tax owing, the taxpayer received a tax refund. All interest and penalties were waived.
The Challenge
CRA reassessed senior taxpayer’s 10+ year returns, disallowing medical expenses, attendant care, and facility care deductions. ITA and regulations unclear for taxpayer’s situation.
Our Approach
Analyzed applicable ITA sections and CRA regulations, amended returns with proper documentation and interpretation.
The Resolution
CRA accepted amended returns. Taxpayer received refund instead of payment demand. All penalties and interest waived.