Principal Issues: Whether a particular iontophoresis device that has been prescribed by a doctor for the treatment of hyperhidrosis is a qualifying device for the purposes of the medical expense tax credit.
Position: Yes.
Reasons: The particular iontophoresis device is considered a qualifying electrotherapy device under paragraph 5700(z.2) of the Regulations.
XXXXXXXXXX 2011-039186 Chrys Tzortzis, CA
February 17, 2011
Dear XXXXXXXXXX :
Re: Iontophoresis Device
We are writing in reply to your letter dated December 27, 2010, wherein you enquire whether a particular iontophoresis device is a qualifying device for the purposes of the medical expense tax credit ("METC"). You state that the particular device has been prescribed by a doctor for the treatment of hyperhidrosis which is a condition characterized by excessive sweating. Your inquiry is made in the context of claiming the cost of the device under an extended health care plan.
Written confirmation of the tax consequences that apply to a particular fact situation is given by this Directorate only in the context of an advanced income tax ruling request 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. However, 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.
Under paragraph 118.2(2)(m) of the Act, an amount paid for a device or equipment may qualify as a medical expense if certain conditions are met. Generally, to qualify, the device or equipment must be prescribed by a medical practitioner, must be included in the list of qualifying devices or equipment described in section 5700 of the Income Tax Regulations (the "Regulations") and must meet such conditions as are prescribed by the Regulations as to its use or the reason for its acquisition.
Under paragraph 5700(z.2) of the Regulations, an electrotherapy device designed to be used by an individual with a medical condition or by an individual who has a severe mobility impairment is a qualifying device for the purposes of paragraph 118.2(2)(m) of the Act. It is our understanding that iontophoresis is a form of treatment for hyperhidrosis that entails submerging the affected area in water through which an electrical current is passed into the skin. Since iontophoresis involves the therapeutic use of electricity and as the iontophoresis device described in your letter has been designed for the treatment of hyperhidrosis, it is our view that such a device would be considered a qualifying electrotherapy device under paragraph 5700(z.2) of the Regulations.
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