21 October 2004 Ministerial Correspondence 2004-0094381M4 - Medical Expense

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: Does the cost of a weight-loss program qualify as a medical expense?

Position: Possible under 118.2(2)(a) or in exceptional cases under 118.2(2)(e).

Reasons: Legislation

October 21, 2004

XXXXXXXXXX

Dear XXXXXXXXXX:

Mr. Alan Nymark, Commissioner of the Canada Revenue Agency, has asked me to reply to your correspondence of August 5, 2004, concerning the medical expense tax credit. I apologize for this delayed response.

Section 118.2 of the Income Tax Act provides rules for determining the amount that may be claimed as a tax credit in respect of medical expenses. Subsection 118.2(2) of the Act lists the types of expenditures that qualify as medical expenses. Those parts of subsection 118.2(2) that are relevant to your situation are discussed below.

Amounts Paid to a Medical Practitioner or Hospital

Pursuant to paragraph 118.2(2)(a) of the Act, an amount is considered to qualify as a medical expense of an individual only if it is paid to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of a medical or dental service.

In general terms, a "medical practitioner" is a person who is authorized by a province or other jurisdiction to act as a medical practitioner. A person is authorized by a province or other jurisdiction to act as a medical practitioner if there is specific legislation that enables, permits or empowers the person to practice as such.

In your letter you enquire whether amounts paid by an individual who participated in a weight-loss program as treatment for a specific disease, including obesity, diagnosed by a physician, would qualify as a medical expense under the Act. An amount paid by an individual in respect of a "medical service" provided by a licensed medical practitioner would qualify as a medical expense eligible for the medical expense tax credit where the amount is paid directly to the medical practitioner or to a corporation that employs the medical practitioner. 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. In our opinion, a weight-loss program would be considered a medical service when the program is offered to an individual for therapeutic or rehabilitative reasons.

Amounts Paid for Care and Training in an Institution

Pursuant to paragraph 118.2(2)(e) of the Act, medical expenses include the costs paid for the care, or the care and training, of a patient at a school, institution or other place when an appropriately qualified person has certified that patient to be a person who, by reason of a physical or mental impairment, requires the equipment, facilities or personnel specially provided by that place. An "appropriately qualified person" includes a medical practitioner as well as any other person who has been given the required certification powers under a provincial or federal law.

Fees paid for a weight-loss program or course may, in exceptional circumstances, qualify as medical expenses under paragraph 118.2(2)(e) of the Act when such a program or course is part of a patient's medical treatment that is required because of a serious health deterioration problem, and the program is both prescribed and monitored by a medical practitioner.

Amounts Paid for Diet Food Items

Finally, there is no provision in the Act or Income Tax Regulations that allow the cost of diet food items to qualify as medical expenses.

Should you require more information on the types of expenses that qualify as medical expenses, you may refer to Interpretation Bulletin IT-519R2 (Consolidated) entitled Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, which is available on our Web site at www.cra.gc.ca.

I appreciate the opportunity to address your concerns.

		Yours sincerely,

		Stephen Rigby
		Assistant Commissioner
		Policy and Planning Branch

Shaun Harkin
September 28, 2004
2004-009438