Deductibility of Surrogacy Payments in Canadian Tax Law

Surrogacy arrangements in Canada are estimated to have increased by 400% the last decade, part due rising rates of infertility. Costs for these can be upwards $100,000. Individuals and couples using a surrogate expand their family sought relief under medical expense tax credit pursuant section 118.2(2) or adoption 118.01(2) Income Tax Act. The deductibility payments is relatively new issue Canadian law; however courts consistently denied deduction surrogacy payments. Court has heard five cases on matter all four that precedential value. Surrogates do not meet definition “patient” qualify outside scope credit. This article canvases legal policy arguments favour against allowing deductible. It proposes creation credit, similar design existing