Principal Issues: Whether amounts paid for a personal fitness trainer which has been prescribed by a physician for medical rehabilitation is an eligible medical expense for the METC.
Position: No.
Reasons: Conditions in paragraph 118.2(2)(a) are not met as the provision requires that amounts be paid to a medical practitioner, dentist or nurse or a public or licensed private hospital. One of the conditions in paragraph 118.2(2)(l.9) is that the therapy must be "administered under the general supervision of" a medical doctor, psychologist or occupational therapist. This condition is not met as a personal fitness trainer would not be considered to be administering therapy under the general supervision of a medical doctor, psychologist or occupational therapist.
XXXXXXXXXX 2010-039105 Chrys Tzortzis, CA
February 10, 2011
Dear XXXXXXXXXX :
Re: Fees Paid for Personal Fitness Trainer as Medical Expenses
We are writing in reply to your email dated December 3, 2010, wherein you inquire whether amounts paid for a personal fitness trainer which has been prescribed by a physician for medical rehabilitation qualify as eligible medical expenses for the purposes of the medical expense tax credit ("METC").
Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of a request for an advance income tax ruling submitted in the manner set out in Information Circular 70-6R5, Advanced Income Tax Rulings, dated May 17, 2002. This Information Circular and other Canada Revenue Agency publications can be accessed on the CRA Web site at www.cra-arc.gc.ca. Although we cannot comment on your specific situation, we are prepared to provide the following general comments, which may be of assistance.
Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of the Income Tax Act ("Act"). If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2) of the Act, 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 is considered to qualify as a medical expense for the purposes of the METC if it is paid to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of medical or dental services. In general terms, a "medical practitioner" is a person who is authorized by a province or other jurisdiction to act as a medical practitioner. In our view, a person is authorized by a province or other jurisdiction to act as a medical practitioner if there is specific legislation that enables, permits or empowers the person to practice as such. A "medical service" is a diagnostic, therapeutic or rehabilitative service provided by a medical practitioner acting within the scope of his or her professional training.
We are unaware of any provincial legislation that authorizes and regulates personal fitness trainers as medical practitioners. Accordingly, in our view, amounts paid to a personal fitness trainer would not qualify as an eligible medical expense under paragraph 118.2(2)(a), even if prescribed by a physician. Further, on page 14 of the CRA Guide RC4064 (2010), Medical and Disability-Related Information, athletic or fitness club fees are listed as non-eligible for the METC. This publication is available on the CRA Web site.
We have also considered paragraph 118.2(2)(l.9) of the Act which provides that an amount paid as remuneration for therapy provided to a patient because of the patient's severe and prolonged impairment qualifies as a medical expense if certain conditions are met. One condition is that the therapy must be prescribed by, and administered under the general supervision of, a medical doctor or a psychologist, in the case of mental impairment and a medical doctor or an occupational therapist, in the case of a physical impairment. Another condition is that, for the year the remuneration is paid, the patient must qualify for the disability tax credit under section 118.3 of the Act because of his or her impairment.
Generally, in our view, a personal fitness trainer would not be considered to be administering therapy under the general supervision of a medical doctor, psychologist or occupational therapist. Therefore, amounts paid for a personal fitness trainer would not qualify as an eligible medical expense under paragraph 118.2(2)(l.9) as one of the conditions of this provision would not be met.
We trust that 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