3 February 2004 External T.I. 2003-0053241E5 - 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 CCRA.

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

Principal Issues:	Do the following qualify as medical expenses:  1) fees
		paid to a medical practitioner for the completion of
		health and disability forms; and 2) amounts paid for
		theraband, tubing, and support socks prescribed by and
		paid to a physiotherapist?

Position: 1) Yes; 2) No

Reasons:	1)  The completion of forms is considered ancillary to
		the medical service provided by the practitioner; and 2)
		Theraband, tubing, and support socks are not listed as
		prescribed medical devices under regulation 5700.

Bob Naufal, CMA
XXXXXXXXXX (613) 957-2744
2003-005324
February 3, 2004

Dear XXXXXXXXXX:

Re: Qualifying Medical Expenses

We are writing in response to your letter dated December 9, 2003, wherein you inquired whether the following items qualify as medical expenses for purposes of the medical expense tax credit:

? Amounts paid to a medical practitioner for completing health or disability forms; and

? Amounts prescribed by and paid to a physiotherapist for theraband, tubing, and support socks.

Our Comments

Subsection 118.2(2) of the Income Tax Act (Canada) (the "Act") defines the expenses that qualify for the medical expense tax credit. For this purpose, the references below to a "medical practitioner" or "physiotherapist" is a reference to a person who is authorized by a province or other jurisdiction to act as a medical practitioner or physiotherapist, as the case may be. A person is authorized by a province or other jurisdiction to act as a medical practitioner or physiotherapist if there is specific legislation that enables, permits or empowers the person to practice as such.

Amounts paid for completing health or disability forms

Pursuant to paragraph 118.2(2)(a) of Act, an amount paid to a medical practitioner, dentist or nurse, or a public or licensed private hospital is considered to qualify as a medical expense of an individual only if it is paid in respect of a medical or dental service. A medical service is a service relating to the diagnosis, treatment or prevention of disease performed by a medical practitioner acting within the scope of his or her professional training. It is our view that the completion of health or disability forms by a medical practitioner would normally be ancillary to the medical service provided by the practitioner. Accordingly, amounts paid to the practitioner for the completion of the forms would qualify as a medical expense.

Theraband, tubing, and support socks

Under paragraph 118.2(2)(m) of the Act, a payment in respect of prescribed medical devices and equipment may qualify as a medical expense if certain conditions are met. Generally, to qualify, the device or equipment must be prescribed by a medical practitioner and included in the list of qualifying medical devices or equipment described in section 5700 of the Income Tax Regulations (the "Regulations"). While a physiotherapist may be considered a medical practitioner for this purpose (depending on the applicable province or jurisdiction), it is our view that "theraband, tubing, and support socks" are not included in the list of qualifying medical devices or equipment in Regulation 5700 and, accordingly, the costs for such items would not qualify as a medical expense.

The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of Information Circular 70-6R5, the above comments do not constitute an income tax ruling and accordingly are not binding on the Canada Revenue Agency. Our practice is to make this disclaimer in all instances in which we provide an opinion.

We trust our comments will be of some assistance.

Yours truly,

Wayne Antle, CGA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate