23 November 2001 External T.I. 2001-0107135 - NUTRITIONAL SUBSTANCES AS MEDICAL EXP.

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 certain nutritional substances and botanical medicines recommended by a nutritionist and a naturopath qualify as medical expenses under 118.2(2).

Position: Unless included under 118.2(2)(a), must be prescribed by medical practitioner and dispensed and recorded by a pharmacist

Reasons: requirements of 118.2(2)(n).

			2001-010713
XXXXXXXXXX 		B.G. Dodd
(613) 957-8953
November 23, 2001

Dear XXXXXXXXXX:

Re: Medical expenses for Income Tax Purposes

We are writing in reply to your letter dated October 3, 2001 requesting an interpretation of section 118.2 of the Income Tax Act (the "Act") with respect to certain medical expenses you have incurred.

You advise that as a result of an automobile accident, you have been receiving on-going rehabilitation, including the services of a naturopath and a nutritionist who have recommended a number of therapies. These include various nutritional substances and botanical medicines which are described in the letters from the naturopath and nutritionist which you provided. Whether these items qualify as medical expenses for purposes of the medical expense tax credit under section 118.2 of the Act is a question of fact and we are unable to provide you with confirmation on this matter. However, we hope the following will enable you to make this determination.

We note initially that fees paid to a medical practitioner in respect of medical services provided to a person qualify under paragraph 118.2(2)(a) of the Act. If the items in question are received as part of the medical services provided by a medical practitioner, the cost which is included in such fees will qualify. If that is not the case, there are two categories of drugs, medicaments or other preparations or substances the cost of which may qualify as medical expenses as follows:

(a) under paragraph 118.2(2)(n) of the Act, drugs, medicaments or other preparations or substances (other than those referred to in (b) below), which a medical practitioner must have prescribed, and which must be purchased from a pharmacist who has recorded the prescription in a prescription record, and

(b) under paragraph 118.2(2)(k), insulin, oxygen and liver extract injectible for pernicious anaemia and vitamin B12 for pernicious anaemia, which a medical practitioner must have prescribed, but which may be obtained from a pharmacy or any other type of store without a written prescription.

As the items listed in your case are not those described in (b) above, the requirements in (a) above would be applicable, namely that the 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. If it is the case that the items in question are not dispensed by a pharmacist and not recorded in a pharmaceutical record, the cost of the items would not qualify for purposes of the medical expense tax credit.

Where the items might otherwise qualify, a further matter to be considered in your situation is whether the items have been prescribed (or the medical services provided) by a "medical practitioner". A medical practitioner under the Act is a person authorized to practice as such under the laws of the particular jurisdiction or province. We are aware, for example, that there is Ontario legislation regulating the profession of dietetics (a dietician) such that a member of the College of Dietitians of Ontario would be a medical practitioner for purposes of the Act. We are not aware of similar legislation applicable to nutritionists. Naturopaths are also recognized in some jurisdictions. We are unable to say whether the naturopath and nutritionist with whom you are dealing are so authorized but these individuals presumably would be in a position to advise you of their status in the province of Ontario.

Additional information concerning the medical expense tax credit and related matters is contained in our interpretation bulletin IT-519R2 which may be obtained from your local tax services office or from our Internet web site (www.ccra-adrc.gc.ca). We hope this will be of assistance to you.

Yours truly,

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

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