private health insurance premiums for self employed individual

I have a client who owns her own hair salon and pays for private health and accident insurance.  CRA audited her last year and says that there is a cap of $1500.00.  she actually paid $5087.38 for the year.  Is there really a cap on these premiums?


If you have no other full-time employees, or less than 50% of the employees are at arm’s length, the deduction for you and your dependants is restricted to an annual maximum of $1,500 for each of you, your spouse or common-law partner and other family members 18 years of age or older, and to $750 for other members of your household under 18.

This is from a Grant Thornton site. I can understand there being a maximum. The remainder should be paid by the individual personally and deducted personally. 

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