Principal Issues: [TaxInterpretations translation] Can various expenses be eligible for the medical expense tax credit?
Position: Question of fact. In this case, no.
Reasons: The Income Tax Act. See the reasons below.
XXXXXXXXXX 2011-039773
September 12, 2011
Dear Sir,
Subject: Medical expense tax credit
This is in response to your letter dated March 1, 2011 in which you asked for our opinion on the above subject.
Unless otherwise indicated, all statutory references herein are to the provisions of the Income Tax Act (the "Act").
In particular, you indicated that you have severe stenosis of the spine. For that purpose, you wish to know if the following expenses can result in entitlement to the medical expense tax credit:
- Aquatherapy classes, prescribed by your doctor;
- An orthopedic mattress, prescribed by your doctor, which is adjustable like a hospital bed;
- A pain management course given by XXXXXXXXXX.
Our Comments
As stated in paragraph 22 of Information Circular 70-6R5, dated May 17, 2002, it is the practice of the Canada Revenue Agency to issue a written opinion regarding proposed transactions otherwise than by advance rulings. Furthermore, when it comes to determining whether a completed transaction has received appropriate tax treatment, the determination is made first by our Tax Services Offices as a result of their review of all facts and documents, which is usually performed as part of an audit engagement. However, we can offer the following general comments that we hope may be helpful to you. These comments may, however, under certain circumstances, not apply to your particular situation.
Paragraph 118.2(2)(a) allows an individual to include, as eligible medical expenses, amounts paid to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of medical or dental services provided to the patient. Fees will be paid for medical services if they were paid for diagnostic, therapy or rehabilitation services.
With respect to the purchase of an orthopedic mattress, paragraph 118.2(2)(m) stipulates that certain devices and equipment - as specified in section 5700 of the Income Tax Regulations ("ITR") - may qualify for the medical expense tax credit. For an amount paid for a device or equipment to qualify under paragraph 118.2(2)(m), the device or equipment must meet the following conditions:
- It is of a prescribed kind,
- It is prescribed by a medical practitioner,
- It is not described in any other paragraph of subsection 118.2(2), and
- It meets such conditions as are prescribed as to its use or the reason for its acquisition.
ITR paragraph 5700(h) provides that an expenditure made in respect of a hospital bed will qualify for the METC. In our opinion, the term "hospital bed" refers to the type of bed that is generally found in a hospital and is used by patients in that hospital. That term is not intended to include all types of adjustable beds that may have similar characteristics to those of a hospital bed. Thus, at first glance, we are of the view that the purchase of an orthopedic mattress would not qualify for the METC.
With respect to expenditures for aquatherapy classes, paragraph 118.2(2)(a) allows an individual to include, as eligible medical expenses, amounts paid to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of medical or dental services provided to a taxpayer. In your situation, although the aquatherapy treatments were prescribed by your doctor, they do not appear to have been paid for to persons listed in paragraph 118.2(2)(a). We therefore do not believe that the expenses related to those treatments could give rise to the METC.
Respecting pain management courses, such expenses will be eligible for the METC if both of the following conditions are satisfied:
- they have been incurred for diagnostic, therapeutic or rehabilitative services for a pre-existing medical condition;
- they have been paid to a medical practitioner or a public or licensed private hospital.
We hope that these comments are of assistance.
Best regards,
François Bordeleau, Advocate
Manager
Business and Partnerships Section
Income Tax Rulings Directorate