8 December 2004 External T.I. 2004-0091401E5 - Medical Expense - Shiatsu

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.

Principal Issues: Is a Shiatsu Therapist considered a medical practitioner for purposes of the Medical Expense Tax Credit?

Position: No.

Reasons: Shiatsu therapist not authorized under the laws of Ontario.

XXXXXXXXXX 2004-009140
Shaun Harkin, CMA
December 8, 2004

Dear XXXXXXXXXX:

Re: Technical Interpretation Request: Section 118.2

We are writing in reply to your letter of August 12, 2004, wherein you asked whether payments to a Shiatsu Therapist would be eligible for the medical expense tax credit and could be covered under a private health services plan ("PHSP").

Our Comments

In order for a plan to be a PHSP, coverage must be limited to hospital care or expenses or medical care or expenses, which normally would otherwise have qualified as a medical expense under the Income Tax Act (the "Act").

Subsection 118.2(2) of the Act provides a list of the types of expenditures which qualify as medical expenses for the purposes of the medical expense tax credit. Paragraph 118.2(2)(a) of the Act states that a medical expense of an individual includes an amount paid "to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of medical or dental services". 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, dentist, pharmacist, nurse or optometrist is a reference to a person authorized to practice as such, according to the laws of the jurisdiction in which the service is rendered. To the extent that expenditures are described within the above comments, they would be regarded as medical expenses.

We refer you to paragraphs 2 and 3 of Interpretation Bulletin IT-519R2 (Consolidated), Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction. As noted, a medical practitioner may, depending upon the laws of the jurisdiction in which the service is provided, include a therapeutist (also referred to as a therapist). The reference in paragraph 3 of IT-519R2 (Consolidated) to a therapeutist, or therapist, is a general reference to a number of different health professionals, to whom payments may be considered to be amounts paid to a medical practitioner for medical services. For example, in the province of Ontario, a "therapist" includes those therapists governed by the Regulated Health Professions Act, 1991. These therapists include speech-language pathologists (a protected title under the Audiology and Speech-Language Pathology Act, 1991, as is the title "speech therapist"), denture therapists (a restricted title under the Denturism Act, 1991), massage therapists (a restricted title under the Massage Therapy Act, 1991), an occupational therapist (protected title under the Occupational Therapy Act, 1991), a respiratory therapist (protected title under the Respiratory Therapy Act, 1991) and a physiotherapist(protected title under the Physiotherapy Act, 1991). Each of these health professionals is authorized to practice in the province of Ontario in accordance with the provisions of the Regulated Health Professions Act, 1991, and the relevant Act respecting the regulation of the specific health profession.

The practice of shiatsu therapy does not appear to be authorized under the laws of Ontario. Therefore, a fee paid to a Shiatsu Therapist in Ontario for shiatsu therapy is not considered to be an expenditure which qualifies as a medical expense for purposes of the medical expense tax credit. As such, the cost for shiatsu therapy performed in Ontario may not qualify for coverage under a PHSP.

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 specific 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

??