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: Does the CRA have an update regarding its position on what qualifies as a private health services plan?
Position: Yes
Reasons: See response
2015 Canadian Tax Foundation Conference
CRA Roundtable
Private Health Services Plan
Question 5
Does the CRA have an update regarding its position on what qualifies as a private health services plan (PHSP)?
CRA Response
After a detailed internal review and consultation with Finance Canada and external stakeholders, the CRA has revised its position on what qualifies as a PHSP. Our previous position was that all medical expenses covered under a plan had to be eligible for the medical expense tax credit (METC) for the plan to qualify as a PHSP. That is, it was an all or nothing test. Effective January 1, 2015, a plan is considered a PHSP as long as the premiums paid under the plan relate “all or substantially all” to medical expenses that would otherwise qualify for METC (assuming all other conditions to be a PHSP are met).
Our revised position will be posted on the CRA website shortly.
Phyllis Waugh
2015-061075
November 24, 2015
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