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 a G-Tube insertion and the accompanying apparatus used for an electronic feeding process qualifies for the medical expense tax credit.
Position: No. Except for one exception, neither a G-tube insertion nor any device or equipment associated with the purpose of this equipment is included in regulation 5700. Only a syringe may qualify for a medical expense tax credit pursuant to Regulation 5700.
Reasons: A G-tube insertion is not described in regulation 5700. Except for one exception, none of the apparatus accommodating a feeding and medication routine utilizing a G-tube insertion is described in regulation 5700. A device or equipment is allowed under paragraph 118.2(2)(m) if it meets all the conditions in that paragraph. Subparagraph 118.2(2)(m)(i) includes the condition that the device or equipment be of a prescribed kind. Regulation 5700 prescribes the kind of device or equipment for the purposes of subparagraph 118.2(2)(m)(i). Only Regulation 5700(b) includes a device, which is consistent with the description of a component part within the G-tube apparatus. Regulation 5700(b) includes a syringe designed to be used for the purpose of giving an injection. The identification of a component part which is described in regulation 5700, and the isolation of its cost, may permit that cost to qualify as an eligible medical expense, if it meets all the other conditions contained in paragraph 118.2(2)(m).
2007-022053
XXXXXXXXXX J. Eckler
(416) 952-8930
March 8, 2007
Dear XXXXXXXXXX:
Re: Technical Interpretation Request - Medical Expense Tax Credit
This is in reply to your correspondence of January 15, 2007, wherein you ask whether the cost of a G-tube insertion and the accompanying apparatus accommodating a feeding and medication routine ("G-tube") qualifies as a medical expense for purposes of the medical expense tax credit.
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.
Subsection 118.2(2) of the Income Tax Act (the "Act") provides a list of expenditures that qualify as medical expenses. 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, must be included in the list of qualifying medical devices or equipment described in section 5700 of the Income Tax Regulations (the "Regulations") and must meet such conditions as are applicable to its use or as to the reason for its acquisition. Since a G-tube device is not included in the list of qualifying medical devices described in the Regulations, an amount paid for this device would not qualify as a medical expense. Regulation 5700(b) does prescribe a syringe designed to be used for the purpose of giving an injection. The identification of a component part which is described in regulation 5700, and the isolation of its cost, may permit that cost to qualify as an eligible medical expense, if it meets all the other conditions contained in paragraph 118.2(2)(m) of the Act. The cost of a syringe qualifies as a medical expense under paragraph 118.2(2)(m) of the Act provided all of the other conditions in that paragraph have been satisfied, a medical practitioner prescribes the syringe, and the syringe is designed to be used for the purpose of giving an injection.
You have indicated that the Act and Regulations should be amended to allow the cost of a G-tube to qualify as a medical expense. The CRA is responsible for administering and enforcing the Act as enacted by Parliament. Your suggested amendment relates to tax policy, which is the responsibility of the Department of Finance Canada. Any changes to the legislation would have to be considered by the Minister of Finance and approved by Parliament. We have, therefore, forwarded a copy of your letter to the Department of Finance for consideration.
We trust our comments will be of some assistance.
Yours truly,
G. Moore
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
c.c. Department of Finance
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