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 XXXXXXXXXX qualifies as a medical expense by virtue of Regulation 5700(i).
Position: No.
Reasons: The devices contemplated under Regulation 5700(i) are those that provide actual support in the action of walking, such as canes, crutches and walkers. In addition, it is unclear whether the device is "exclusively" designed for assistance in "walking".
XXXXXXXXXX Rob Ferrari
2009-035144
March 3, 2010
Re: XXXXXXXXXX - Medical Expense Tax Credit
This is in response to your fax of March 17, 2009, regarding the XXXXXXXXXX
Your letter indicates that XXXXXXXXXX is used to facilitate the rehabilitation process for patients suffering from lower limb function due to sport, orthopedic or neurological trauma. You have asked whether the XXXXXXXXXX qualifies as a medical expense for purposes of the medical expense tax credit ("METC") in subsection 118.2(2) of the Income Tax Act (the "Act").
Our Comments
Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of a request for an advance income tax ruling submitted in the manner set out in Information Circular 70-6R5, "Advanced Income Tax Rulings", dated May 17, 2002. This Information Circular as well as Interpretation Bulletin IT-519R2 (Consolidated), "Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction", ("IT-519R2") can be accessed on the internet at http://www.cra-arc.gc.ca. However, we are prepared to provide the following comments.
In order for an expense to qualify as a medical expense for the purposes of the METC, the cost of a service or item must be described as an eligible medical expense under subsection 118.2(2) of the Act. With regard to a particular medical device, it may qualify as a medical expense under paragraph 118.2(2)(m) of the Act if it is prescribed under section 5700 of the Income Tax Regulations (the "Regulations"), and is for the patient's use as prescribed by a medical practitioner. This paragraph also provides that the particular medical device must also meet such conditions as are prescribed to its use or as to the reason for its acquisition.
Paragraph 5700(i) of the Regulations describes a "device that is exclusively designed to assist an individual in walking where the individual has a mobility impairment." It is our view that the XXXXXXXXXX is not the type of device contemplated under paragraph 5700(i) of the Regulations. It is also our view that there is no other provision under subsection 118.2(2) of the Act which would permit the cost of the XXXXXXXXXX to be claimed as an eligible medical expense for the purposes of the METC.
We trust that our 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
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2010
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2010