Principal Issues: Whether gastric sleeve surgery is considered to be cosmetic surgery?
Position: No.
Reasons: Based on information provided, it appears that it would not be considered to be cosmetic surgery and the cost of gastric sleeve surgery may qualify as a medical expense provided that the conditions in paragraph 118.2(2)(a) are met.
XXXXXXXXXX 2012-043948
March 14, 2012
Dear XXXXXXXXXX :
Re: Gastric Sleeve Surgery
We are replying to your letter dated February 29, 2012, concerning whether the costs incurred for gastric sleeve surgery qualify for the medical expense tax credit ("METC") under subsection 118.2(1) of the Income Tax Act (the "Act"). Gastric sleeve surgery is a medical procedure performed on obese patients where a portion of the stomach is removed.
Our Comments
Cosmetic Procedures
Subsection 118.2(2.1) excludes from eligible medical expenses any amounts paid for medical or dental services, or any related expenses, provided purely for cosmetic purposes, unless the services are required for medical or reconstructive purposes. A cosmetic procedure will continue to qualify for the medical expense tax credit if it is required for medical or reconstructive purposes, such as surgery to ameliorate a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease. The CRA has posted to its website some examples of procedures that will generally be ineligible as medical expenses for purposes of the METC. This information can be found on the CRA website at: http://www.cra-arc.gc.ca/gncy/bdgt/2010/mdcl-eng.html.
Payments to Medical Practitioners and Hospitals
Amounts paid by an individual to a "medical practitioner" or to a "public or licensed private hospital" to obtain medical services are qualifying medical expenses for the METC pursuant to paragraph 118.2(2)(a) of the Act. The term "medical practitioner" includes a physician, dentist, pharmacist, nurse or optometrist who is authorized to practice the particular profession according to the laws of the jurisdiction in which the service is rendered, whereas "licensed private hospital" means licensed by the jurisdiction in which the hospital operates. A list of medical practitioners by province is listed on our website at http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/ampp-eng.html.
Based on the information in your letter, it is our view that, in your and your husband's cases, the gastric sleeve surgery is not cosmetic in nature and therefore, the cost of this surgery would qualify as a medical expense for purposes of the METC, providing the other requirements of paragraph 118.2(2)(a) are met.
We trust these comments will be of assistance.
Yours truly,
G. Moore
for Director
Trusts and Business Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch