If I pay for someone's meds, is that considered a gift?

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elacsaplau

Registered User
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Say someone (non-family member) needs expensive drugs - what is the tax positon if I pay for a few months' supply? (I don't need the money as much as he needs the drugs).

Drugs approx €5k per month.
 
Nobody in Ireland pays more than 134 pm for medicines, thanks to the DPS scheme.
 
elacsaplau said:
Say someone (non-family member) needs expensive drugs - what is the tax positon if I pay for a few months' supply? (I don't need the money as much as he needs the drugs).

Drugs approx €5k per month.
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I presume the drugs aren't covered then under the drug payment scheme? My attitude would be to forget about the tax implications. Are you sure the drugs are worth it though?
 
RedOnion said:
A gift specifically for qualifying medical expenses for an incapacitated person is exempt from CAT.

You may also be able to claim relief in the medical expenses if you are the person paying them.

It will depend on the specific circumstances, but the below link might help answer your question.

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As far as I know, that will only cover someone who is permanently incapacitated. Paying for drug treatment to deal with something like cancer will not qualify for the exemption.
 
Sunny said:
Paying for drug treatment to deal with something like cancer will not qualify for the exemption
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I'm by no means an expert. My understanding is that it will qualify if they are permanently incapacitated. So if it's an illness from which the person is not expected to recover to the extent that they can work and financially support themselves. I would look at the illnesses that are covered under a serious illness policy as an example of what these might be.
 
RedOnion said:
I'm by no means an expert. My understanding is that it will qualify if they are permanently incapacitated. So if it's an illness from which the person is not expected to recover to the extent that they can work and financially support themselves. I would look at the illnesses that are covered under a serious illness policy as an example of what these might be.
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Yeah but the person might be expected to recover from cancer especially if they are paying 5k a month in drug costs. The examples given by revenue all include permanent conditions and disabilities where the money is spent on medical expenses to manage rather than cure the condition. Maybe that is what the OP is talking about but at 5k a month, it sounds like they are hoping for a potential cure rather than just manage something for the rest of their life.

I suppose on the flip side, if the patient in question was to set up a go fund me page to raise money for treatment and the OP donated 15000, would there be any tax liability? I don't know how those campaigns work.
 
Gordon Gekko said:
My sense is that Revenue would have no interest whatsoever in someone paying €5k a month for serious medical treatment for someone else. Yes, by the letter of the law a liability could exist but they’re not monsters.
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I agree but their own examples on the document shared by Red Onion aren't exactly shining examples of kindness and understanding....

Eoghan was diagnosed with multiple sclerosis a number of years ago and requires ongoing medical care. His father died intestate last year and, as his sole beneficiary, Eoghan inherited the total of his father’s estate. While Eoghan has used some of his inheritance to cover medical expenses and related expenses associated with his condition these will not qualify for the exemption as there is no evidence that his father intended, by will or otherwise, to provide the benefit of his estate exclusively for this purpose.
 
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