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.
5-973321
XXXXXXXXXX J. Gibbons
Attention: XXXXXXXXXX
March 27, 1998
Dear XXXXXXXXXX:
We are replying to your letter of November 17, 1998, in which you inquire whether the cost of an exercise program in a gymnasium supervised by a trained technician and in-house cardiologist would qualify as a medical expense under paragraph 118.2(2)(o) of the Income Tax Act (the “Act”).
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 70-6R3. The following comments are, therefore, of a general nature only.
Paragraph 118.2(2)(o) of the Act refers to laboratory, radiological or other diagnostic procedures or services prescribed for the patient by a medical practitioner or dentist, which procedures or services, together with the necessary interpretations, maintain health, prevent disease or assist in the diagnosis or treatment of any injury, illness or disability. Based on the legal principle of ejusdem generis, which states that general or class words, such as “other”, are restricted to the same genus as the specific words that precede them, the reference in paragraph 118.2(2)(o) of the Act to “other diagnostic procedures or services” is limited to diagnostic services or procedures of the same class as laboratory or radiological services. Accordingly, the procedures or services must assist a medical practitioner in making a diagnosis and formulating a course of treatment.
It is not clear from the limited information provided in your letter how the cost of an exercise program that is supervised by a trained technician and an in-house cardiologist would qualify under paragraph 118.2(2)(o) of the Act. Presumably, because of the patient’s previous heart problems, the technician and the cardiologist would monitor the patient’s heart condition as he exercised in order to prevent serious injury. Accordingly, in our view, no part of the cost of such an exercise program, which is prescribed by a patient’s cardiologist, would qualify as a medical expense under paragraph 118.2(2)(o) of the Act, since the purpose is not to assist a medical practitioner in making a diagnosis and formulating a course of treatment. Furthermore, there is no other provision in the Act by which the cost of such an exercise program would be included as a medical expense. On the other hand, a stress test involving exercise, which is prescribed by a medical practitioner, would likely qualify under paragraph 118.2(2)(o) of the Act where the purpose is to assist a cardiologist in diagnosing a patient’s heart condition and formulating a course of treatment (for example, a session on a treadmill in conjunction with an electrocardiogram).
We trust that these comments will be of assistance.
Yours truly,
P. Spice
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
.../cont’d
