19 April 2007 External T.I. 2007-0226071E5 - Medical Expense - Naturopath Invoices

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 specific invoices from a Naturopathic Physician would be eligible as a medical expense for purposes of the medical expense tax credit.

Position: General Comments provided.

Reasons: The law.

									2007-022607
XXXXXXXXXX 								J. Eckler
(416) 952-8930
April 19, 2007

Dear XXXXXXXXXX:

Re: Medical Expense - Naturopathic Physician

We are writing in reply to your enquiry of February 28, 2007, wherein you asked whether the specific invoices from a Naturopathic Physician, which you provided, would be eligible as a medical expense for purposes of the medical expense tax credit.

The situation outlined in your letter appears to relate to a factual one, involving a specific taxpayer. It is not this Directorate's practice to comment on proposed transactions involving specific taxpayers other than in the form of an advanced income tax ruling. For more information about how to obtain a ruling, please refer to Information Circular 70-6R5, Advanced Income Tax Rulings, dated May 17, 2002. 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. Although we cannot comment on your specific situation, we are prepared to provide the following general comments, which may be of assistance.

Our Comments

The CRA's general views regarding the medical expense tax credit are contained in Interpretation Bulletin IT-519R2 (Consolidated), Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction. This bulletin is available on our Web site.

Section 118.2 of the Income Tax Act (the "Act") provides rules for determining the amount that may be claimed, as a tax credit, in respect of certain medical expenses. The credit applies to qualifying expenses, in excess of defined limits, incurred in any 12-month period ending in the taxation year. Paragraph 118.2(2)(a) of the Act defines a medical expense of an individual as an amount paid to a medical practitioner, dentist, nurse or a public or licensed private hospital in respect of medical or dental services provided to a patient who is the individual, the individual's spouse or common-law partner or a dependant of the individual (within the meaning assigned by subsection 118(6) of the Act) in the taxation year in which the expense was incurred.

Subsection 118.4(2) of the Act provides that a reference to a medical practitioner 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. We refer you to paragraph 3 of IT-519R2 (Consolidated), which explains that a "medical practitioner" may include, depending upon the laws of the jurisdiction in which the service is rendered, a naturopath. For example, in the province of Ontario, a "medical practitioner" includes those health professionals governed by the Regulated Health Professions Act, 1991. We cannot provide an exhaustive list of which health professionals qualify as a "medical practitioner," as the list differs between provinces and jurisdictions. Paragraph 19 in IT-519R2 states that a medical service is a service relating to the diagnosis, treatment or prevention of disease. If you have a question as to whether a particular province or other jurisdiction authorizes a naturopath to practice as a medical practitioner, you should contact the relevant province or jurisdiction responsible for such matters.

Payments for remedies dispensed to a patient must be recorded by a pharmacist to qualify as a medical expense for purposes of the medical expense tax credit pursuant to paragraph 118.2(2)(n) of the Act. This paragraph also requires that a medical practitioner prescribe the remedy. Remedies described in this paragraph will not qualify as medical expenses if they have been dispensed to a patient without satisfying both of these requirements.

The nature of the charges included on the invoices, which you have provided, is unclear. We are therefore unable to confirm whether any specific amounts are expenses relating to remedies or whether they are expenses related to medical services. We recommend that you submit all relevant facts and documentation to the appropriate TSO for their views, since your situation involves a specific taxpayer and a completed transaction.

We trust that these comments will be of assistance.

Yours truly,

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