Hysterectomy not deductible — Judge

Press, 1 March 1989, Page 6

Hysterectomy not deductible — Judge

PA Wellington A woman who claimed her hysterectomy was a tax-deductible expense has had her appeael to the Taxation Review Authority turned down.

The woman is the managing director of a management consultant company run with her husband. In its income return for the year ended March 31, 1986, the company claimed the $1375 cost of her hysterectomy at a private hospital.

The Commissioner of Inland Revenue disallowed the claim, stating

that the expenditure was private and could not be claimed as a business deduction.

The company objected, saying the hysterectomy had to be performed privately because surgery at a public hospital would have had to be during the company’s busiest time, the middle of the year. It would have then been necessary to hire an office manager at considerable expense, the company claimed. The woman, aged 34, had the hysterectomy in November, 1985. “I accept that it was a

fairly major and serious operation undertaken only on medical advice,” said Judge Bathgate in a reserved decision.

Medical expenses are deductible under the Income Tax Act if incurred in gaining or producing assessable income. But the Judge said he did riot know to what extent they were incurred.

The company had failed to satisfy the onus of proof upon it of showing that the assessment by the Commissioner of Inland Revenue was wrong, or by how much, Judge Bathgate said.