| 19(1) | File No. 5-8155 |
| S. Short | |
| (613) 957-2134 |
July 17, 1989
Re: Medical Expenses
This is in reply to your letter dated May 27, 1989, wherein you have requested an interpretation of Regulation 5700(1) and (o) of the Income Tax Act (the Act). Specifically, you have asked whether the following equipment qualify as prescribed medical equipment or devices:
1) an Image mode document scanner with automatic document feeder. This device automatically feeds documents to the scanning unit and produces an electronic picture of the printed or typewritten page.
2) SCSI board. This device connects the document scanner to a personal computer.
3) CALERA Text recognition board. This circuit board converts an electronic picture of a printed or typewritten page into text compatible with various word processing programs.
4) DEST Corp. PC facsimile board and software. This permits the sending and receiving of facsimile communications. Received "fax" is stored in the form of an electronic picture of the printed or typewritten page.
5) IBM AT or 100% compatible computer with certain options such as disk drive (s).
6) Artic Businessvision with Symphonix 215 speech synthesizer board. This allows a spoken representation of the text displayed on the screen.
Based only on the information provided in your correspondence, it is our view that items 1) to 5) could not qualify as prescribed medical devices or equipment as defined by Regulation 5700(1) or (o) of the Act.
Your correspondence describes the Calera recognition board as a general purpose image to text conversion system designed for use by a blind individual. As the legislation is very clear in this regard, we feel it would be precluded from the ambit of Regulation 5700(1) of the Act as the "designed to be used by a blind individual" requirement would not be met.
You have stated that the image mode scanner, Calera recognition board with related programs, SCSI board and computer may, when used together, enable a blind individual to read print. It does not appear that this package was designed for this purpose. Although it is not a requirement of Regulation 5700(1) of the Act that the equipment be designed exclusively for use by a blind individual, it is nevertheless, a requirement that use by a blind individual be a design purpose of the package or equipment. Further, until a synthetic speech system, braille printer or other such similar device is introduced to the package just described it is not apparent that the blind individual is in a position to read the electronic text displayed on the computer. We also question whether this package or its component part could be considered a device "similar" to an optical scanner rather than an "other" device to enable a blind individual to read print.
For the reasons described above, we do not feel that the cost of the facsimile board and software could qualify for a medical expense credit.
We agree with your conclusion that the speech synthesizer board could qualify as a prescribed medical device under the provisions of Regulation 5700(o) of the Act. Although your correspondence did not elaborate on the function or design purpose of "Artic Businessvision" it could qualify as a prescribed medical device if it is part of the synthetic speech system.
All medical devices and equipment described in Regulation 5700 of the Act must be prescribed by a medical practitioner as required by paragraph 118.2(2)(m) of the Act.
We trust the above comments will be of assistance to you.
Yours truly
for DirectorSmall Business and General DivisionSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch