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 nasal bone detection test and nuchal translucency test qualifies as a medical expense for purposes of the medical expense tax credit.
Position: The amount paid for such tests will be eligible for the medical expense tax credit if the tests are done by a medical practitioner or a nurse for the purpose of diagnosing, treating or preventing disease.
Reasons: The law. 118.2(2)(a) and 118.42)
XXXXXXXXXX 2007-024674
February 19, 2008
Dear XXXXXXXXXX :
Re: Medical Expenses - Nuchal Translucency and Nasal Bone Detection Tests
This is in response to your letter of July 23, 2007, inquiring about whether nuchal translucency and nasal bone detection tests qualify as medical expenses for purposes of the medical tax credit.
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 medical expenses. The credit applies to qualifying medical 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 to include an amount paid to a medical practitioner or nurse in respect of a medical service. A medical service is a service relating to the diagnosis, treatment or prevention of disease. Subsection 118.4(2) of the Act states that a reference to a "medical practitioner" or a "nurse" 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. In our view, the cost of health care services qualifies as medical expenses for the purpose of the medical expense tax credit if the following two conditions are satisfied:
(a) the services relate to the diagnosis, treatment or prevention of disease; and
(b) the services are performed by a medical practitioner or nurse acting within the scope of their professional training.
Accordingly, if the service providers involved in nuchal translucency and nasal bone detection tests are medical practitioners or nurses, it is our view that the entire cost of such tests would qualify for the medical expense tax credit.
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
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