14 August 2007 External T.I. 2007-0235861E5 - Medical Expense Tax Credit

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: Will Rolf therapy be eligible for the medical expense tax credit?

Position: Likely not.

Reasons: Payments for Rolf therapy would not qualify as eligible medical expenses unless amounts were paid for "medical services" performed by a medical practitioner authorized to practice as such according to the laws of the jurisdiction in which the service was rendered.

								2007-023586
XXXXXXXXXX 							Ian Scowcroft
(613) 948-2233
August 14, 2007

Dear XXXXXXXXXX ,

Re: Medical Expense Tax Credit

This is in response to your letter of May 10, 2007, inquiring about whether Rolf therapy would be considered as an eligible medical expense, and whether a Rolf therapist would be classified as an 'authorized therapist'.

The situation outlined in your letter appears to relate to a factual one. 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 medical expenses are contained in Interpretation Bulletin IT-519R2 - Medical Expenses and Disability Tax Credit and Attendant Care.

Under paragraph 118.2(2)(a) of the Income Tax Act (the 'Act'), there are two criteria that must be met in order for an amount paid to qualify for the medical expense tax credit:

i) The amount must be paid to a medical practitioner, dentist or nurse or public or licensed private hospital; and

ii) The amount paid must be in respect of medical services performed. In determining whether an amount paid is to a 'medical practitioner,' paragraph 118.4(2)(a) of the Act provides that, for the purposes of section 118.2 of the Act, a reference to a medical practitioner is a reference to a person authorized to practice as such, according to the laws of the jurisdiction in which the service is rendered. Accordingly, one must look to provincial legislation to determine whether payments to a medical practitioner will qualify for the medical expense tax credit. In Alberta, the provincial legislation regulating medical practitioners is the Health Professions Act. By applying the above-mentioned criteria, it would appear as though the practice of Rolf therapy is not authorized and regulated by statute of the province of Alberta. Accordingly, payments made to Rolf therapists, who do not otherwise meet the criteria of a medical practitioner, would not qualify for the medical expense tax credit.

With regards to the second criterion, there is no definition of 'medical service' in the Act. However, in determining whether a specific service qualifies as a 'medical service', it has generally been the Agency's position that services provided by a medical practitioner acting within the scope of his or her professional training are medical services.

We trust that these comments will be of assistance.

Yours truly,

P. Jolie
Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch