8 March 2007 External T.I. 2006-0218021E5 - Medical Expense Tax Credit - Dental Implants

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: Whether the cost of implanting individual teeth by means of a peg implanted into a patient's jawbone to secure the tooth would qualify as an approved dental expense.

Position: Yes, provided the payment is to a medical practitioner or a dentist.

Reasons: Payments made to a "medical practitioner" or a "dentist", who is a person authorized to practice as such pursuant to the laws of the jurisdiction in which the service is rendered, would generally constitute a medical expense for the purposes of paragraph 118.2(2)(a). Some of these payments may qualify as medical expenses pursuant to paragraph 118.2(2)(o), for laboratory, radiological or other diagnostic procedures, if they have been prescribed by a medical practitioner or a dentist.

									2006-021802
XXXXXXXXXX 								J. Eckler
(416) 952-8930
March 8, 2007

Dear XXXXXXXXXX:

Re: Medical Expense Tax Credit - Dental Implants

This is in reply to your correspondence of December 14, 2006, regarding medical expenses.

You are asking whether the cost of implanting individual teeth by means of a peg implanted into a patient's jawbone to secure the tooth would qualify as a medical expense for income tax purposes. Further to the telephone conversation (Moore/XXXXXXXXXX) of February 23, 2007, you confirmed that the dental implant procedure would be performed by a physician or dentist. It is our understanding that the purpose of dental implants is to act as a support for full and partial dentures, since the implants integrate with the bone to act as an anchor for replacement teeth.

Written confirmation of the tax consequences inherent in a particular transaction or series of transactions are given by this Directorate only where the transaction(s) are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R5, Advanced Income Tax Rulings, dated May 17, 2002. The foregoing comments are, therefore, of a general nature only and are not binding on the Canada Revenue Agency (CRA). This Information Circular and other CRA publications can be accessed on the internet at http://www.cra-arc.gc.ca. Should your situation involve a specific taxpayer and a completed transaction, you should submit all relevant facts and documentation to the appropriate Tax Services Office ("TSO") for their views. A list of TSOs is available on the "Contact Us" page of the CRA website.

Paragraph 118.2(2)(a) of the Income Tax Act (the "Act") defines a medical expense to include an amount paid to a medical practitioner, dentist, nurse or a public or licensed private hospital in respect of dental services. Subsection 118.4(2) of the Act provides that a reference to a "medical practitioner," "medical doctor" or a "dentist" in respect of services rendered is a reference to a person who is authorized to practice as such pursuant to the laws of the jurisdiction in which the service is rendered. Paragraph 19 in Interpretation Bulletin IT-519R2, Medical Expenses, indicates that a medical service is a service relating to the diagnosis, treatment or prevention of disease. Similarly, a dental service generally relates to the treatment of an individual's teeth.

Payments made to a "medical practitioner" or a "dentist", who is a person authorized to practice as such pursuant to the laws of the jurisdiction in which the service is rendered, would constitute a medical expense for the purposes of paragraph 118.2(2)(a) of the Act, provided the payments are in respect of medical or dental services. Payments for dental implants would qualify as medical expenses under this provision, provided they were paid to such a person. Some of these payments may qualify as medical expenses pursuant to paragraph 118.2(2)(o) of the Act, for laboratory, radiological or other diagnostic procedures, if they have been prescribed by a medical practitioner or a dentist. In this context, the cost of dental implants paid to a medical practitioner or dentist would likely qualify as a medical expense.

We hope that our comments will be of assistance to you.

Yours truly,

G. Moore
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch