9 December 2002 Ruling 2002-0163953 - MEDICAL EXPENSES

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues: The taxpayer requested a ruling on whether vitamin, mineral and health supplements that are prescribed by a medical doctor practicing complimentary medicine, and sold by a licensed pharmacist would qualify as a medical expense.

Position: No ruling provided. General comments only.

Reasons: The determination is a question of fact.

Bob Naufal, CMA
XXXXXXXXXX (613) 957-2744
2002-016395
December 9, 2002

Dear Sir:

Re: XXXXXXXXXX (the "Taxpayer")
Medical expenses - Vitamins, Minerals and Health Supplements

This is in reply to your letter dated September 18, 2002 and your follow up letter dated October 16, 2002 wherein you requested an Advance Income Tax Ruling on behalf of the Taxpayer.

The issue in your request for an Advance Income Tax Ruling is whether the cost of specific vitamin, mineral and health supplements will qualify as medical expenses if a receipt for these expenses is issued by a pharmacist. More specifically, your letter of October 16, 2002 requests clarification of the legislation as it relates to medical expenses and in particular to vitamin, mineral and health supplements.

As discussed with you on October 30, 2002 (Naufal/XXXXXXXXXX), we have determined that we are unable to provide the rulings requested on this matter. In our view, the matter is primarily one of fact and the circumstances are such that all pertinent facts cannot be established. We are, however, prepared to provide the following general comments.

Section 118.2 of the Income Tax Act (the "Act") provides rules for determining the amount that may be claimed, as a tax credit, in respect of medical expenses. The credit applies to qualifying medical expenses, in excess of defined limits, incurred in any 12-month period ending in the taxation year. Included in the list of qualifying medical expenses is an amount paid in respect of:

(A) an oxygen tent or equipment to administer oxygen, or for insulin, oxygen, liver extract injected for pernicious anaemia, or vitamin B12 for pernicious anaemia prescribed by a medical practitioner, but which a pharmacy or any other type of store may sell without a written prescription pursuant to paragraph 118.2(2)(k) of the Act; and

(B) any drugs, medications or other preparations or substances (other than those described in (A) above) that are prescribed by a medical practitioner or dentist, and recorded by a pharmacist, pursuant to paragraph 118.2(2)(n) of the Act.

Moreover, in order for the amounts described in (B) to qualify as a medical expense they must be manufactured, sold or represented for use in:

(i) restoring, correcting or modifying an organic function;

(ii) diagnosing, treating or preventing a disease, disorder or abnormal physical state; or

(iii) treating the symptoms of a disease, disorder or abnormal physical state.

The requirements of paragraph 118.2(2)(n) set out above do not preclude claims in respect of drugs and other substances, including vitamins and minerals, which also happen to be available over the counter without a prescription. As long as the drug in question is prescribed by a medical practitioner and dispensed by a licensed pharmacist who records the prescription in a prescription record as required by the relevant provincial legislation the cost would qualify as a medical expense.

We trust our comments will be of some assistance to you.

Yours truly,

D. Boychuk, LL.B
for Director
Business and Partnerships Division
Income Tax Rulings Directorate

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