21 January 2010 External T.I. 2009-0349731E5 - Medical expenses - ultrasound tests

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: Do the costs of ultrasound tests qualify as medical expenses for the medical expense tax credit where the individual has been referred by a doctor for such tests?

Position: Yes

Reasons: Legislation

XXXXXXXXXX 								2009-034973
									Katharine Skulski
January 21, 2010

Dear XXXXXXXXXX :

Re: Medical Expenses - Ultrasound Tests

This is in response to your fax of December 2, 2009, inquiring about whether costs incurred for ultrasound tests paid to a private hospital will qualify as medical expenses for purposes of the medical expense tax credit.

The particular situation outlined in your letter appears to relate to a factual one, involving one or more specific taxpayers. As explained in Information Circular 70-6R5, it is not this Directorate's practice to comment on transactions involving specific taxpayers other than in the form of an Advance Income Tax Ruling. An Advance Income Tax Ruling is not issued where a transaction has been completed or is significantly advanced. In those instances you should submit all relevant facts and documentation to the appropriate Tax Services Office for their views. However, we are prepared to offer the following general comments which may be of assistance.

Amounts paid by an individual to a "medical practitioner" or to a "public or licensed private hospital" to obtain medical services qualify as medical expenses for purposes of the medical expense tax credit pursuant to paragraph 118.2(2)(a) of the Income Tax Act (the "Act"). The term "medical practitioner" can include individuals such as a medical doctor, dentist, pharmacist, nurse or optometrist provided that he or she is authorized to practice in the stated profession according to the laws of the jurisdiction in which the service is rendered. The term "licensed private hospital" is not defined in the Act but generally is considered to mean that a hospital is licensed by the jurisdiction in which it operates.

Pursuant to paragraph 118.2(2)(o) of the Act, qualifying medical expenses include amounts paid for laboratory, radiological or other diagnostic procedures or services, with necessary interpretations, for maintaining health, preventing disease or assisting in the diagnosis or treatment of an injury, illness or disability as prescribed by a medical practitioner. Therefore, the cost of ultrasound tests at a private licensed hospital would generally qualify as a medical expense.

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