Principal Issues: Whether an amount paid by the taxpayer for cosmetic surgery qualifies as a medical expense for purposes of calculating the medical expense tax credit.
Position: Question of fact.
Reasons: An amount paid for a medical or dental service must not be excluded pursuant to subsection 118.2(2.1) of the Income Tax Act. It is a question of fact whether or not a medical or dental service is provided purely for cosmetic purposes and whether or not it is necessary for medical or reconstructive purposes.
XXXXXXXXXX 2011-042943 André Gallant January 31, 2012
Dear XXXXXXXXXX :
Re: Medical expenses
We are writing in reply to your correspondence dated November 25, 2011, wherein you enquire whether the cost of cosmetic surgery would qualify as an eligible medical expense for the purposes of the medical expense tax credit ("METC"). You described the nature of the surgery as follows:
- To remove loose skin from abdominal area and tighten the skin;
- Fill breasts and lift them because of sagging/loose skin;
- Remove loose skin from upper arms and tighten the skin; and
- Remove loose skin from inner thighs and tighten the skin.
Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of the Income Tax Act (the "Act"). If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2), or if the conditions under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the METC, even though the expenditure may have been incurred for medical reasons.
Pursuant to paragraph 118.2(2)(a) of the Act, an amount paid by an individual to a medical practitioner, a dentist or a nurse (a "medical practitioner") or to a public or private licensed hospital for medical services is a qualifying medical expense for the METC. A medical practitioner must be authorized to practice their particular profession according to the laws of the jurisdiction in which the service is rendered, whereas a licensed private hospital means licensed by the jurisdiction in which the hospital operates. A "medical service" means a service relating to the diagnosis, treatment or prevention of a disease or disorder performed by a medical practitioner acting within the scope of his or her professional training.
An amount qualifying under paragraph 118.2(2)(a) of the Act may be denied pursuant to subsection 118.2(2.1) of the Act if the service was provided purely for cosmetic purposes. In particular, this latter provision excludes from eligible medical expenses, an amount paid for medical or dental services, including any related expenses, which are provided purely for cosmetic purposes unless they are necessary for medical or reconstructive purposes.
It is a question of fact whether or not a medical or dental service is provided purely for cosmetic purposes and whether or not it is necessary for medical or reconstructive purposes. Therefore, the determination in a particular situation would be based on a consideration of all the relevant facts and supporting documentation including the opinion of a qualified medical practitioner. If there is doubt as to the eligibility of a particular expenditure or the opinion is unclear, further information or clarification may be requested in order to make a determination.
We trust our comments will be of assistance to you.
Yours truly,
G. Moore
for Director
Business and Trusts Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch