29 July 2002 External T.I. 2002-0140205 - MEANING OF AIR PURIFIER

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 the fact that a device or equipment acts as an air exchanger, in addition to its function as an air purifier, would preclude it from qualifying as an air purifier for purposes of paragraph 5700(c.1) of the Income Tax Regulations.

Position: Generally no.

Reasons: Based on the ordinary meaning of "air purifier." However, if an air exchanger and an air purifier are separate units such that each may be purchased separately, i.e., the functions of purifying and exchanging the air are not engineered to work together inextricably as one unit, it is our view that only the cost of the air purifier may qualify under paragraph 5700(c.1).

XXXXXXXXXX
2002-014020
J. Gibbons, CGA
July 29, 2002

Dear XXXXXXXXXX:

We are replying to your email, dated May 9, 2002, about whether certain products (the "particular products") manufactured by XXXXXXXXXX (the "Manufacturer") would qualify as a medical expense under subsection 118.2(2) of the Income Tax Act (the "Act"). The particular products are part of the Manufacturer's XXXXXXXXXX and combine XXXXXXXXXX filter and an air exchanger.

According to paragraph 118.2(2)(m) of the Act, a device or equipment for use by an individual qualifies as a medical expense if it is (i) of a prescribed kind, (ii) is prescribed by a medical practitioner, (iii) is not described in any other paragraph of this subsection, and (iv) meets such conditions as are prescribed as to its use or the reason for its acquisition.

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 income tax ruling request submitted in the manner set out in Information Circular 70-6R5, dated May 17, 2002. Further, in determining whether a device or equipment fulfils the requirements of the Act to qualify as a medical expense of an individual, it is primarily the individual in respect of whom the device or equipment was purchased who must satisfy these requirements. Accordingly, we are unable to confirm whether the particular products would qualify as a medical expense under subsection 118.2(2) of the Act. However, we have provided some general comments which should be of some assistance.

The highlights of the particular products, as described on the Manufacturer's internet site, are as follows:

XXXXXXXXXX.

Our Comments

Section 5700 of the Income Tax Regulations (the "Regulations") prescribes device or equipment, as well as the conditions to its use or the reason for its acquisition, for purposes of paragraph 118.2(2)(m) of the Act. In your email, you referred to paragraphs 5700(c) and (c.1) of the Regulations. The former describes "a device or equipment, including a replacement part, designed exclusively for use by an individual suffering from a severe chronic respiratory or a severe chronic immune system disregulation, but not including ... heat or air exchanger [emphasis added]". The latter describes "An air or water filter or purifier for use by an individual who is suffering from a severe chronic respiratory or a severe chronic immune system disregulation to cope with or overcome that ailment or disregulation."

Since there is no indication that the particular products are designed exclusively for use by an individual suffering from a severe chronic respiratory or a severe chronic immune system disregulation, it is our view that they would likely not qualify under paragraph 5700(c) of the Regulations. Further, this paragraph also specifically excludes air exchangers. As we understand it, an air exchanger is a mechanical device that continuously draws air from the outside to replace the indoor air in a home.

The meaning of an "air purifier" for purposes of paragraph 5700(c.1) is neither defined in the Act nor Regulations. According to Merriam- Webster's Collegiate Dictionary (Tenth Edition) "purify" may mean "to make pure: as ... to free from undesirable elements", " while The Concise Oxford Dictionary (Eight Edition), states that the term may mean to "cleanse or make pure." On the basis of the ordinary meaning of "purify", it is our view that an "air purifier" can encompass any device or equipment that cleanses or makes pure the air by removing impurities such as dust, animal hair, etc.

It is a question of fact whether a device or equipment is an "air purifier". In our view, the fact that a device or equipment acts as an air exchanger, in addition to its function as an air purifier, would not generally preclude it from qualifying as an air purifier for purposes of paragraph 5700(c.1). However, if an air exchanger and an air purifier are separate units such that each may be purchased separately, i.e., the functions of purifying and exchanging the air are not engineered to work together inextricably as one unit, it is our view that only the cost of the air purifier may qualify under paragraph 5700(c.1).

We trust that these comments will be of assistance.

Yours truly,

Lena Holloway, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate

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