Principal Issues: Whether XXXXXXXXXX provided by a particular clinic qualifies as an eligible medical expense.
Position: Yes.
Reasons: This is a medical service provided by or under the supervision of a medical doctor.
May 29, 2006
Pierre Houde Headquarters Audit Division 442 Eliza Erskine Sherbrooke TSO (613) 957-2046
2006-017193
Medical expenses - Treatment "XXXXXXXXXX" paragraph 118.2(2)a
This is in response to your request of February 10, 2006, for our opinion on the eligibility of fees paid for "XXXXXXXXXX" treatment received in a private clinic.
Situation
- The taxpayer has been incurring medical expenses for his disabled child for some years. These expenses consist of a treatment called "XXXXXXXXXX" (XXXXXXXXX) provided by the "XXXXXXXXX Clinic". (XXXXXXXXX ) provided by "XXXXXXXXX " (the "Clinic").
- The taxpayer has never previously claimed the cost of this treatment as a deduction.
- Regardless of whether the expense was eligible, the taxpayer made a donation to a charitable organization established for that purpose. Subsequently, the charity paid the fees to the Clinic and the taxpayer claimed a tax credit for his "charitable donation".
Our Comments
Paragraph 118.2(2)(a) of the Income Tax Act (the "Act") provides that eligible medical expenses include amounts paid to a medical practitioner for medical services. Whether a particular service qualifies as a "medical service" for the purposes of that paragraph is a question of fact. We are of the opinion that XXXXXXXXXX, as provided at the Clinic, is a medical service.
Please note that the operation of XXXXXXXXXX is governed by a law of the Province of Quebec under which that professional service may be provided by a physician. Furthermore, according to the information posted on the Clinic's website, XXXXXXXXXX offered there is provided either directly or under the supervision of qualified physicians. We are therefore of the view that a payment made to this clinic for XXXXXXXXXX would normally qualify as a medical expense for the purposes of subsection 118.2(2).
We agree with you that the "contribution" that the taxpayer made to the charity was not a valid charitable donation since there was no intention to make a donation. That being said, we agree that the amount that was the subject of the contribution to the charity can be treated as a medical expense incurred by the taxpayer for the purposes of the tax credit to the extent that it relates directly to the XXXXXXXXXX service that the Clinic provided to the taxpayer's child.
We hope you find these comments useful. If you have any further questions on this subject, please do not hesitate to contact us.
Robin Maley
for the Director
Business and Partnerships Division
Income Tax Rulings Directorate