CRA Routinely Disallows Parking Expense Claims, Even For Life-Threatening Illnesses

Keehn v. The King, 2023 TCC 1

Keehn v. The King is the perfect illustration of the principle that there is no equity in tax law and of the tax courts choosing to enforce the 'letter of the law', regardless of how inequitable it may appear. It also provides an insight into the court's position on the intersection of the Income Tax Act, s. 15(1) of the Canadian Charter of Rights & Freedoms, and public policy.

Facts- Keehn v. The King and medical expense deduction

This case is particularly fascinating to tax commentators due the simplicity of its facts. Mr. Keehn appealed the reassessments made for his 2018 taxation year in which the Canada Revenue Agency ("CRA") disallowed $853 claimed as 'medical expenses' under s.118.2 of the Income Tax Act. Mr. Keehn's wife received kidney dialysis treatment three times a week at the Royal Alexandra Hospital in Edmonton. Mrs. Keehn would drive from her home to the hospital located approximately 22 kilometers from her house.