Income Tax Severed Letters - 2019-06-05

Technical Interpretation - External

7 May 2019 External T.I. 2019-0800911E5 - Cannabis for medical purposes

Unedited CRA Tags

Principal Issues: Can a taxpayer with a prescription to purchase cannabis for medical purposes, purchase it from any legal retailer and claim the cost as an eligible medical expense for the METC?

Position: No.

Reasons: i. Proposed updates have been tabled to amend paragraph 118.2(2)(u) to reference the new Cannabis Regulations.
ii. An individual must be registered with a "holder of a licence for sale for medical purposes" to purchase cannabis for medical purposes that will qualify for the METC under the proposed provision.

6 May 2019 External T.I. 2019-0791601E5 - METC & HATC for a dependant

Unedited CRA Tags
118.2; 118.041; 118(6)

Principal Issues: Whether an individual is entitled to (i) the home accessibility tax credit and (ii) medical expense tax credit in respect of expenses incurred for his adult son who is XXXXXXXXXX?

Position: Question of fact.

Reasons: (i) If the individual is a qualifying individual for purposes of the HATC, up to $10,000 of the expenses may be eligible. General comments provided.
(ii) If the son is a dependant of the individual, some of the expenses could be eligible for the METC. General comments provided.

6 May 2019 External T.I. 2019-0798981E5 - Magnetotherapy devices & eligible medical expenses

Unedited CRA Tags
118.2(2)(m); Regulations 5700(v) and 5700(z.2)

Principal Issues: Whether the cost of a particular electromedical device for magnetotherapy (or electromagnetic therapy) is an eligible medical expense for the purpose of paragraph 118.2(2)(m) of the Act and paragraphs 5700(v) and 5700(z.2) of the Regulations.

Position: Question of fact. Depending on its use, the device may fall under the ambit of paragraph 5700(v) in limited situations, provided that all the conditions in paragraph 118.2(2)(m) of the Act and paragraph 5700(v) of the Regulations are met. However, it is unlikely that the device would be considered to be an electrotherapy device that is described in paragraph 5700(z.2) of the Regulations.

Reasons: The wording of paragraphs 5700(v) and (z.2).

28 March 2019 External T.I. 2018-0777751E5 - Medical marihuana

Unedited CRA Tags
ITA: 118.2(2)(a), (m), and (u), section 5700 of the Regulations

Principal Issues: Whether the cost of goods and services related to growing and producing medical marihuana are considered eligible medical expenses for the purpose of the medical expense tax credit?

Position: Services - Question of fact, but likely no; cost of related goods, no.

Reasons: See response.

14 March 2019 External T.I. 2019-0796871E5 - QRLSP through arbitration

Unedited CRA Tags

Principal Issues: Whether amounts received through an arbitration process as part of collective bargaining would be a qualifying amount, as defined under subsection 110.2(1).

Position: Likely yes, assuming all other conditions are met.

Reasons: An amount received under an arbitration award can be a qualifying amount.