Principal Issues: Whether the monitoring of therapy by a licensed neurologist would meet the requirement under paragraph 118.2(2)(l.9) that, in the case of a physical impairment, the therapy be administered under the general supervision of a medical doctor or an occupational therapist.
Position: No.
Reasons: Based on the ordinary meaning of "general supervision".
XXXXXXXXXX 2008-029150
J. Gibbons, CGA
February 2, 2009
Dear XXXXXXXXXX :
Re: Therapy as a Medical Expense Tax Credit ("METC")
This is in reply to your letter dated September 2, 2008, concerning the requirement in subparagraph 118.2(2)(l.9)(ii) of the Income Tax Act (the "Act") that therapy must be administered under the general supervision of a medical doctor.
Paragraph 118.2(2)(l.9) of the Act provides that an amount paid as remuneration for therapy provided to the patient because of the patient's severe and prolonged impairment qualifies as a medical expense provided certain conditions are met. 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. At the time the remuneration is paid, the payee must be neither the individual's spouse nor an individual who is under 18 years of age. Each receipt filed with the Minister to prove payment of the remuneration must be issued by the payee and must contain, where the payee is an individual, that individual's Social Insurance Number. Finally, in 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.
In the particular situation described in your letter, the progress of the particular therapy is monitored by a licensed neurologist through periodic examinations of the patient. In our view, monitoring by a medical doctor would not meet the above-noted requirement that the therapy be administered under the general supervision of a medical doctor.
I 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