A critical analysis of the tax concessions relating to medical expenses, with particular emphasis on persons with a physical impairment or disability

Abstract

This thesis provides a critical analysis of the tax concessions granted in respect of medical costs, with particular reference to persons with a physical impairment or "disability" in the South African context. The primary method of collecting information for this research was through an extensive analysis of the South African legislation that is specifically applicable to a person who has a physical impairment or a "disability" . The analysis placed particular emphasis on the qualifying diagnosis criteria for a "disability" as defined for tax purposes as well as on the qualifying expenditure incurred in consequence of a person's physical impairment or "disability" . A further goal of the research was to analyse the specific provisions of the Income Tax Act that are applicable to a special trust created for the benefit of a person with a physical impairment or "disability" . This research also includes a brief evaluation of the extent to which medical schemes provide coverage for non-discretionary expenditure items incurred in consequence of a person's "disability" and whether this differs from the qualifying expenditure in terms of the Income Tax Act. It is important to conduct research of this nature in order to identify areas where the legislation could be improved. Accordingly, the thesis also recommends possible amendments to the current provisions of the legislation that are specifically applicable to persons with a physical impairment or "disability" .