I operate my business as a sole proprietorship. Can I deduct the claims I make for my family and myself through the MediDirect® program?
• Yes, you can, provided that over 50% of your total income is derived from the sole proprietorship and you have at least one qualified or designated employee. The intention of the 1998 Federal Budget was that a sole proprietor that has at least one qualified or designated employee will be able to deduct amounts paid through a Private Health Services Plan. However, the Canada Revenue Agency (CRA) may question whether a deduction is available to a sole proprietor in respect of amounts paid under a Private Health Services Plan. It is advised that the sole proprietor can demonstrate that they have a qualified or designated employee working within the business. If you wish further information, please contact MediDirect®. We will discuss appropriate steps needed to properly document your client’s health services plan to comply with CRA regulations.
