12 January 2022 Internal T.I. 2021-0920371I7 - METC – Cost of a cast

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 cost of a walking cast would qualify as an eligible medical expense for the purposes of the METC.

Position: Yes.

Reasons: See response.

						     January 12, 2022

Marie-Pier Valiquette				Income Tax Rulings Directorate
A/Senior Programs Officer,			Business and Employment Division
Sales Tax and Benefits Information		Cynthia Underhill
Section, ABSB	

						      2021-092037

Medical expense tax credit – eligibility of a walking cast

We are writing in response to your email dated December 8, 2021, asking if the cost of a walking cast would qualify as a medical expense for purposes of the medical expense tax credit (“METC”), under section 118.2 of the Income Tax Act (Act). More specifically, you asked whether a walking cast can be added to the list of common medical expenses on the Canada Revenue Agency (CRA) webpage titled, “Medical expenses”.

It is your view that the cost of a walking cast may fall under either paragraphs 1.77 or 1.122 of Income Tax Folio S1-F1-C1, Medical Expense Tax Credit (the “Folio”).

Our Comments

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) of the Act, 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.

Paragraph 118.2(2)(i) of the Act allows the purchase of “a brace for a limb” to qualify as an eligible medical expense for purposes of the METC. As explained in paragraph 1.77 of the Folio, the phrase “a brace for a limb” in paragraph 118.2(2)(i) includes a brace where at least one of the functions of the brace must be to “impart some degree of rigidity to the limb” and includes “woven or elasticized stockings where these are of a kind that are carefully fitted to measurement or are made to measure.”

The term “cast” is not used or defined in the Act for the purposes of paragraph 118.2(2)(i); therefore, we generally rely on the ordinary meaning (such as dictionary definitions). The term “cast” means “a rigid casing (as of fiberglass or of gauze saturated with plaster of paris) used for immobilizing a usually diseased or broken part” or “a covering made of plaster of Paris that is put around part of someone’s body, forming a hard case to protect them while a broken bone repairs itself.” It is therefore our view that the term “brace for a limb” can be extended to include a cast, because the function of a cast is similar to that of a brace as they both impart some degree of rigidity to the limb.

Based on this function, it appears that a cast would be considered “a brace for a limb”, and as such would qualify as an eligible medical expense for the purposes of paragraph 118.2(2)(i) of the Act.

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.

Section 5700 of the Regulations states:

“[Prescribed device or equipment] — For the purposes of paragraph 118.2(2)(m) of the Act, a device or equipment is prescribed if it is a

. . .

(i) device that is exclusively designed to assist an individual in walking where the individual has a mobility impairment; . . .”

Paragraph (i) of section 5700 of the Regulations is restrictive because it requires that the device be “exclusively designed” to assist an individual in walking where the individual has a mobility impairment. It is our view that a walking cast would meet the definition of “exclusively designed” given that a walking cast is exclusively designed to assist an individual in walking where the individual has a mobility impairment. Therefore, a walking cast would qualify as an eligible medical expense for the purposes of paragraph 118.2(2)(m) of the Act.

In conclusion, a cast and a walking cast can be added to the CRA’s list of common medical expenses on the CRA webpage titled, “Medical expenses”.

Unless exempted, a copy of this memorandum will be severed using the Access to Information Act criteria and placed in the CRA’s electronic library. A severed copy will also be distributed to the commercial tax publishers for inclusion in their databases.

We trust these 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