6 March 2001 External T.I. 2001-0071705 - 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 Department.

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

Principal Issues:

Whether "non-Christian healers who provide healing through prayer" qualifies as a "medical practitioners" under the Act.

Position:

Likely not.

Reasons:

Paragraph 118.4(2)(a) of the Act provides that, for the purposes of section 118.2 of the Act, a reference to a "medical practitioner,"etc. means, for a service rendered, a person who is authorized to practice as such according to the laws of the jurisdiction in which the service is rendered. Accordingly, one must look to provincial legislation to determine whether payments to a medical practitioner will qualify for the medical expense tax credit.

		2001-007170
XXXXXXXXXX 	Denise Dalphy, LL.B.
(613) 957-9231
March 6, 2001

Dear XXXXXXXXXX:

Re: Medical Expenses

We are writing in reply to your letter dated February 23, 2001 wherein you requested an elaboration of paragraph 4 of Interpretation Bulletin IT-519R2, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, which discusses the meaning of the term "medical practitioner" in section 118.2 of the Income Tax Act (the "Act"). In particular, you enquire whether non-Christian healers who provide healing through prayer are "medical practitioners" for the purpose of claiming medical expenses for income tax purposes.

Written confirmation of the consequences 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 70-6R4. Where the particular transactions are partially completed or completed, the enquiry should be addressed to the relevant Tax Services Office. Notwithstanding the foregoing, we offer the following general comments.

Paragraph 118.2(2)(a) of the Act provides that payments made "to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of medical or dental services" may qualify for medical expense tax credits. Paragraph 118.4(2)(a) of the Act states that, for the purposes of certain provisions of the Act, including section 118.2, a reference to a "medical practitioner", "dentist", "pharmacist", "nurse", or "optometrist" means, for a service rendered, a person who is authorized to practice as such according to the laws of the jurisdiction in which the service is rendered. Accordingly, in order to determine whether a non-Christian who "heals" people through prayer is a "medical practitioner", it would be necessary to note the province where those services were rendered and then to ascertain whether there is a specific law in that province that authorized the "healer" to practice as a medical practitioner. Please note that this analysis would not be necessary with respect to a claim for the disability tax credits because those provisions of the Act refer to "medical doctors", and not "medical practitioners".

The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of Information Circular 70-6R4, the above comments do not constitute an income tax ruling and accordingly are not binding on the Canada Customs and Revenue Agency. Our practice is to make this specific disclaimer in all instances in which we provide an opinion.

Yours truly,

Steve Tevlin
for Director
Business and Partnerships Division
Income Tax Rulings Directorate

- 2 -