11 December 2002 External T.I. 2002-0167165 - 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: Whether cost of "doctor prescribed food" for individual with celiac disease qualifies as medical expense.

Position: The cost of food is not a qualifying medical expense unless prescribed by a doctor and dispensed and recorded by a pharmacist.

Reasons: Paragraph 118.2(2)(n)

XXXXXXXXXX 2002-016716

Lena Holloway, C.A.

December 11, 2002

Dear XXXXXXXXXX:

Re: Medical Expenses

We are writing in reply to your letter of June 6, 2002, concerning the eligibility of certain costs as medical expenses. Your letter explains that as a result of having celiac disease your clients' dependants require "doctor prescribed specialized foods". You have asked us if such costs qualify as medical expenses for purposes of the Income Tax Act (the "Act").

Written confirmation of the tax consequences that apply to a particular fact situation is given by this directorate only in the context of an advance ruling request submitted in the manner set out in Information Circular 70-6R5. Notwithstanding the foregoing, we are prepared to provide the following general comments.

There are two categories of drugs, medicaments or other preparations or substances the cost of which may qualify as a medical expense for purposes of the Act:

a) drugs, medicaments or other preparations or substances, prescribed by a medical practitioner, and purchased from a pharmacist who records the prescription in a prescription record, and

b) insulin, oxygen and liver extract injectible for pernicious anaemia and vitamin B12 for pernicious anaemia, prescribed by a medical practitioner.

Assuming that the food items prescribed for celiac disease are not described in (b), the requirements in (a) would have to be met in order for such costs to qualify as medical expenses. Namely, these items must have been prescribed by a medical practitioner and must have been purchased from a pharmacist who has recorded the prescription in a prescription record. Accordingly, the cost of specialized food items would not qualify for purposes of the medical expense tax credit unless the items in question were dispensed by a pharmacist and recorded in a pharmaceutical record.

We trust the above comments are of assistance.

Yours truly,

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