7 November 2012 Ministerial Correspondence 2012-0462471M4 - medical expenses - cosmetic

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.

Principal Issues: Whether the cost of laser hair removal qualifies as a medical expense? Also, was the service provided by a medical practitioner?

Position: The cost of medical services incurred purely for cosmetic purposes does not qualify as a medical expense. It is a question of fact whether a particular expense incurred is purely for cosmetic purposes. Also, it is not clear whether the laser hair removal procedure was provided by a medical practitioner. Only general comments can be provided.

Reasons: The law.

November 7, 2012

XXXXXXXXXX

Dear XXXXXXXXXX:

The office of the Honourable James M. Flaherty, Minister of Finance, sent me a copy of your correspondence asking if you can claim the cost of laser hair removal as a medical expense for purposes of the medical expense tax credit (METC). I apologize for the delay in responding.

Medical expenses that are eligible for the METC are limited to those described in the Income Tax Act. If a particular expense is not included in the Act or does not meet the required conditions, the expense does not qualify for the METC even though the expense may have been for medical reasons.

An amount is considered to qualify as a medical expense for the METC if it is paid to a medical practitioner, dentist, nurse, or a public or licensed private hospital for medical or dental services. A medical practitioner, dentist, or nurse is a person authorized to practice under the relevant provincial legislation. To determine whether a particular practitioner qualifies under the Act, you have to check the laws of that province. For example, if a service is performed in Alberta, the practitioner must be authorized to practice under the laws of Alberta. Your letter did not state whether a medical practitioner performed your laser hair removal procedures.

A medical expense does not include amounts paid for medical or dental services (or any related expenses) provided for purely cosmetic purposes unless they are necessary for medical or reconstructive purposes, such as surgery for a deformity from, or related to, a congenital condition, a personal injury from an accident or trauma, or a disfiguring disease.

The Canada Revenue Agency (CRA) has posted some examples on its Web site of procedures that are generally ineligible as medical expenses for purposes of the METC. You can find these examples at www.cra.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/ntllwbl-eng.html.

It is a question of fact whether a medical service is provided for purely cosmetic purposes and whether the service is necessary for medical or reconstructive purposes. The determination in a particular situation would be based on consideration of all the relevant facts and supporting documents. This may include consideration of an opinion of a qualified medical practitioner describing the nature and purpose of the procedure in enough detail to be able to make a determination.

In your case, without more information, I cannot determine if a medical practitioner performed the laser hair removal procedure or if the procedure was for a medical or reconstructive purpose. Therefore, I am unable to confirm whether the cost of your procedure qualifies as an eligible medical expense.

I trust that the information I have provided is helpful.

Yours sincerely,

Gail Shea, P.C., M.P.

G. Moore
(613) 957-2141
2012-046247