Principal Issues: Whether the cost of lap band surgery would qualify as a medical expense for purposes of the medical expense tax credit?
Position: Question of fact but in this case, it would qualify.
Reasons: It would not be considered to be cosmetic surgery in this case as the client is obese and has related health issues such as high blood pressure and sleep apnea. The requirements of paragraph 118.2(2)(a) have been met.
XXXXXXXXXX 2011-039545
February 16, 2011
Dear XXXXXXXXXX :
Re: Lap Band Surgery
We are replying to your letter dated January 29, 2011, concerning whether the costs incurred for lap band surgery qualify for the medical expense tax credit ("METC") under subsection 118.2(1) of the Income Tax Act (the "Act").
Further to the telephone conversation (Moore/XXXXXXXXXX ) of February 15, 2011, you indicated that the lap band surgery is being undertaken as a result of being diagnosed by your physician with obesity and associated health issues such as high blood pressure and sleep apnea.
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 case, the lap band 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
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch