7 February 2019 External T.I. 2017-0719651E5 - Medical expenses

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 costs incurred for: 1) Proloquo2Go software; 2) an Apple iPad; and 3) a Liftware spoon qualify as medical expenses for purposes of the Medical Expense Tax Credit.

Position: 1) Likely yes; 2) No; 3) No.

Reasons: 1) The Proloquo2Go software appears to be similar to a bliss symbol board as described in Income Tax Regulation 5700(x); 2) An Apple iPad does not meet the requirements under subsection 118.2(2); 3) The Liftware spoon does not meet the requirements under subsection 118.2(2).

XXXXXXXXXX								2017-071965
C. Brennan CPA, CA
February 7, 2019

Dear XXXXXXXXXX:

Re: Medical expenses

This is in reply to your email and attached letter received August 22, 2017, regarding whether certain expenditures qualify as a medical expense for purposes of the medical expense tax credit (“METC”) under section 118.2 of the Income Tax Act (the “Act”). We apologize for the delay in our response.

More specifically, you are enquiring whether the cost of the following items would qualify as a medical expense for purposes of the METC:

1) An Alternative communication software “Proloquo2Go” (“Proloquo2Go software”) to be used by individuals with a speech impairment, to communicate more effectively;

2) An iPad Mini 4 (“Apple iPad”) to be used exclusively with Proloquo2Go software, and;

3) A specialized eating utensil called the Liftware Level Spoon (“Liftware Spoon”), to be used by individuals with special needs to eat independently.

This technical interpretation provides general comments about the provisions of the Income Tax Act and related legislation (where referenced). It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R8, Advance Income Tax Rulings and Technical Interpretations.

Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of the Act. If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2), or if the conditions under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the METC, even though the expenditure may have been incurred for medical reasons.

Under paragraph 118.2(2)(m) of the Act, a payment in respect of a device or equipment may qualify as a medical expense if certain conditions are met. Generally, to qualify, the device or equipment must be prescribed by a medical practitioner, must be included in the list of qualifying devices or equipment described in section 5700 of the Income Tax Regulations (the "Regulations") and must meet such conditions as are prescribed by the Regulations as to its use or the reason for its acquisition.

Proloquo2Go software

It is our understanding, based on the manufacturer’s description, that Proloquo2Go software is a “symbol-supported communication app to promote language development and grow communication skills…” and is further described as an “Alternative communication solution for children, teenagers and adults who need symbol support.”

Paragraph 5700(x) of the Regulations, describes a “Bliss symbol board or other similar device designed to be used to help an individual who has a speech impairment to communicate by selecting symbols or spelling out words” as a prescribed device for purposes of paragraph 118.2(2)(m). Proloquo2Go software appears to have similar functions as a bliss symbol board, as described in paragraph 5700(x) of the Regulations. Therefore, the cost of the Proloquo2Go software would likely be an eligible expense for the purposes of the METC, assuming the remaining conditions included in paragraph 118.2(2)(m) of the Act are met (as noted above).

Apple iPad

It is our understanding that the Apple iPad will be used in conjunction with the Proloquo2Go software.

An Apple iPad is not described in subsection 118.2(2) nor does it satisfy the additional requirements in sections 5700 or 5701 of the Regulations. As such it would not be an eligible expense for purposes of the METC.

Liftware spoon

It is our understanding, based on the manufacturer’s description, that the Liftware spoon is “designed to accommodate limited hand and arm mobility that may be related to conditions like cerebral palsy, spinal cord injury, Huntington's disease, Parkinson's disease, or post-stroke deficits.” The Liftware spoon is used by these individuals to assist them to eat independently.

The Liftware spoon is not described in subsection 118.2(2) nor does it satisfy the additional requirements in sections 5700 or 5701 of the Regulations, therefore it would not be an eligible expense for purposes of the METC.

We trust our comments will be of assistance to you.

Yours truly,

Lita Krantz, CPA, CA
Manager, Tax Credits and Ministerial Issues
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch