2 May 2002 External T.I. 2002-0123245 - MEDICAL EXPENSES; HERBS

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 expenses are medical expenses

Position: -insufficient facts to determine whether a particular expense is deductible since we have no information on the expenses, but the cost of herbal remedies is not deductible

Reasons: must be described in 118.2

                        2002-012324
XXXXXXXXXX              Denise Dalphy, LL.B.
(613) 941-1722
May 2, 2002

Dear XXXXXXXXXX:

Re: Medical Expenses

We are writing in reply to your letter that you sent to us by facsimile transmission on February 7, 2002 wherein you enquired about the deductibility of expenses incurred in connection with your wife's illness.

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 are providing the following comments.

Generally, in order for drugs, medicaments and other preparations to qualify as medical expenses under the Income Tax Act they have to be prescribed by a medical practitioner and they must also be recorded as such by a pharmacist. However, insulin, oxygen, liver extract injectible for pernicious anaemia, and vitamin B12 for pernicious anaemia, are substances that, if prescribed by a medical practitioner, may be claimed as medical expenses even if they are purchased without a written prescription and are purchased from a dispenser other than a pharmacist.

We do not have any information that would indicate that the herbs were either prescribed by a medical practitioner nor were purchased from a licensed pharmacist who has recorded the prescription in his or her prescription record. Furthermore, we have no information that would demonstrate that the herbs are substances that are required to be purchased from a pharmacist. Accordingly, the costs you have incurred for herbs would not qualify as medical expenses for income tax purposes.

Certain transportation and travel expenses of a patient and one person who accompanied the patient may be deductible as medical expenses under the Income Tax Act. We enclose a copy of Interpretation Bulletin IT-519R2 consolidated (the "IT Bulletin"). Paragraphs 31 to 34 therein describe the conditions that must be satisfied in order for these expenses to be deductible. In particular, we wish to bring to your attention to two requirements that may be particularly relevant to your situation. Firstly: the transportation or travel amounts must relate to the need to obtain "medical services", which means that the services must be for medical services rendered by a medical practitioner (described in paragraphs 2 and 3 of the IT Bulletin), a dentist, a nurse, or a public or licensed private hospital. Secondly, for the expenses of the person who travels with the patient to be deductible, a medical practitioner must have certified that the patient was incapable of travelling without the assistance of an attendant.

The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of the Circular, 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