27 February 2008 Ministerial Correspondence 2008-0264631M4 - medical expenses - over the counter drugs

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 over the counter drugs qualify as a medical expense for purposes of the medical expense tax credit

Position: Generally no

Reasons: The Income Tax Act sets out three criteria for a drug to be considered an eligible medical expense. The drug must be used in the diagnosis, treatment or prevention of a disease, disorder, abnormal physical state, or symptoms thereof or in restoring, correcting or modifying an organic function; prescribed by a medical practitioner; and recorded by a pharmacist. Generally, provincial legislation concerning the record keeping practices required by pharmacists indicates that a pharmacist shall keep at the place where he or she practices his or her profession a record for each patient in respect of whom a prescription is filled. However, only certain types of drugs are required to be recorded by a pharmacist.

February 27, 2008

XXXXXXXXXX

Dear XXXXXXXXXX :

Thank you for your letter received on December 13, 2007, concerning the medical expense tax credit.

The Income Tax Act sets out three criteria for a drug to be considered an eligible medical expense. The drug must be used in the diagnosis, treatment or prevention of a disease, disorder, abnormal physical state, or the symptoms thereof, or in restoring, correcting or modifying an organic function; prescribed by a medical practitioner; and, recorded by a pharmacist. The third criterion, "recorded by a pharmacist," is not defined in the Act and requires an examination of the appropriate provincial legislation that governs pharmacists.

Generally, the relevant provincial legislation indicates that pharmacists must keep, in the place where they practice their profession, a record for each patient for whom a prescription is filled. However, only certain types of drugs are required to be "recorded by a pharmacist." Although provincial legislation varies, generally, over-the-counter drugs such as Aspirin are not required to be recorded by a pharmacist.

With respect to your claim for Aspirin pills on your 2005 Income Tax and Benefit Return as a medical expense, the Tax Court (Informal Procedure) found that the pills were prescribed by a medical practitioner, "recorded by a pharmacist," and otherwise met the requirements of the Act described above. Therefore, since the Court found that the requirements of the Act were met in your case, the cost of the Aspirin qualifies as a medical expense for the purposes of the medical expense tax credit.

I trust that the information provided clarifies the position of the CRA on this matter.

Sincerely,

The Honourable Gordon O'Connor, P.C., M.P.

Insert from Gwen Moore, Rulings LPRAB - 613-957-2141
January 24, 2008