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 payments for consumable food, supplements, vitamins, or other similar preparations, in order to avoid illness and potential life threatening reactions due to allergies, would be eligible as a medical expense for purposes of the medical expense tax credit.
Position: No.
Reasons: A pharmacist is not required to record the purchase of consumable food, supplements, vitamins, or other similar preparations.
2007-023117
XXXXXXXXXX J. Eckler
(416) 952-8930
May 9, 2007
Dear XXXXXXXXXX:
Re: Medical Expenses - food, supplements, vitamins, or other similar preparations
We are writing in reply to your letter of March 2, 2007, wherein you asked whether payments for certain food items for your son, in order to avoid illness and potential life threatening reactions due to allergies, 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.
The CRA's general views regarding subject are contained in Interpretation Bulletin Interpretation Bulletin IT-519R2 (Consolidated), Medical Expenses and Disability Tax Credits and Attendant Care Expense Deduction. This is available on our Web site at www.cra-arc.gc.ca. Subsection 118.2(2) of the Income Tax Act (the "Act") includes three provisions describing the types of consumable food, supplements, vitamins, or other similar preparations that may qualify as medical expenses. These are:
(a) drugs, medicaments or other preparations or substances, that are prescribed by a medical practitioner, and purchased from a pharmacist who records the prescription in a prescription record, pursuant to paragraph 118.2(2)(n) of the Act;
(b) insulin, oxygen and liver extract injectible for pernicious anaemia and vitamin B12 for pernicious anaemia, that are prescribed by a medical practitioner, but which a pharmacy or any other type of store may sell without a written prescription, pursuant to paragraph 118.2(2)(k) of the Act; and
(c) the incremental cost of gluten-free food products, as compared to the cost of comparable non-gluten-free food products, if the patient has been certified in writing by a medical practitioner to be a person who, because of celiac disease, requires a gluten-free diet, pursuant to paragraph 118.2(2)(r) of the Act.
Moreover, in order for the amounts described in (a) above to qualify as medical expenses, they must be manufactured, sold or represented for use in:
(i) the diagnosis, treatment or prevention of a disease, disorder or abnormal physical state, or
(ii) the treatment of the symptoms of a disease, disorder or abnormal physical state, or
(iii) restoring, correcting or modifying an organic function
The requirements of paragraph 118.2(2)(n) of the Act set out above do not preclude claims in respect of consumable food, supplements, vitamins, or other similar preparations, which also happen to be available over the counter without a prescription. In our view, the cost of the consumable food, supplements, vitamins, or other similar preparations would only qualify as a medical expense if they were prescribed by a medical practitioner, meet the criteria described in the previous paragraph, and are dispensed by a licensed pharmacist who records the prescription in a prescription record in accordance with the relevant provincial legislation governing such professions. Moreover, it is our view that cash register receipts normally issued for over the counter drug purchases would not adequately support medical expense claims under subsection 118.2(2)(n) of the Act.
It is our view that the amounts described in (b) above do not apply to the consumable food, supplements, vitamins, or other similar preparations, which you purchase for your son, since your son does not have pernicious anaemia, the products described in that paragraph are not amoung those you indicate that your son requires, and you have not obtained a prescription from a medical practitioner for any of the items you indicate that your son requires. It is our view that the amounts described in (c) above do not apply to the consumable food, supplements, vitamins, or other similar preparations, which you purchase for your son, since your son has not been certified in writing by a medical practitioner to be a person who, because of celiac disease, requires a gluten-free diet, and many of the products you indicate that your son requires, are not products described in that paragraph.
We are unaware of any situation where a licensed pharmacist is required to record the prescription of consumable food, supplements, vitamins, or other similar preparations, in a prescription record in accordance with the relevant provincial legislation governing such professions. Since a pharmacist is not required to record the purchase of consumable food, supplements, vitamins, or other similar preparations, it is our view that the amounts paid for these will not qualify as a medical expense under paragraph 118.2(2)(n) of the Act.
We trust that these comments will be of assistance.
Yours truly,
Gwen Moore
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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