22 October 2002 External T.I. 2002-0165295 - MEDICAL PRACTITIONER

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 Department.

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

Principal Issues: Does the cost of counselling services provided in Ontario by a person with a Masters of Social Work qualify as a medical expense under subsection 118.2(2) of the Act?

Position: No. An amount paid to a person for counselling services will only qualify as a medical expense if the service provided is a medical service and the provider is a medical practitioner

Reasons: A Masters of Social Work is not authorized under the laws of Ontario to provide medical services

Bob Naufal, CMA
XXXXXXXXXX (613) 957-2744
2002-016529
October 22, 2002

Dear XXXXXXXXXX:

Re: Subsection 118.4(2) of the Income Tax Act

We are writing in response to your letter dated September 23, 2002, wherein you requested our comments as to whether the cost of counselling services provided by a person with a Masters of Social Work degree would qualify for the medical expense tax credit under subsection 118.2(2) of the Income Tax Act (the "Act"). In your letter, you referred to the Regulated Health Professions Act, 1991 which governs the provision of certain medical services in Ontario.

Our Comments

Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R5, dated May 17, 2002. Notwithstanding the foregoing, we are prepared to provide the following general comments.

Section 118.2 of 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 to a "medical practitioner, dentist or nurse or a public or licensed private hospital" in respect of a medical or dental service.

Subsection 118.4(2) of the Act provides that a medical practitioner is a person authorized to practise as such by the laws of the jurisdiction where the services are provided. A person is authorized by the laws of the jurisdiction to act as a medical practitioner if there is specific legislation that enables, permits or empowers a person to perform medical services.

In Ontario, the Regulated Health Professions Act, 1991 provides that no person may perform certain acts without authorization under that statute or another health professions statute. There are a number of such statutes governing the provision of various medical services in Ontario, including chiropractic services, medical radiation, psychoanalysis and occupational therapy.

A person with a Masters Degree in Social Work is not authorized under the Regulated Health Professions Act, 1991, or any other statute in Ontario to provide medical services. Consequently, a person with a Masters Degree in Social Work would not be considered a medical practitioner and, therefore, the cost of the counselling services provided by such a person would not qualify for the medical expense tax credit.

We trust our comments will be of assistance.

Yours truly,

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

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