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 exciteOSA device is an eligible device for purposes of the METC?
Position: Likely yes, if prescribed by a medical practitioner as an electrotherapy device used by a person with a medical condition.
Reasons: The device appears to be an electrotherapy device designed to be used by an individual with a medical condition, sleep apnea, as contemplated by subsection 5700(z.2) of the Regulations.
XXXXXXXXXX 2022-095554
E. Wirag, CPA, CMA
November 21, 2022
Dear XXXXXXXXXX,
Re: The medical expense tax credit and the eXciteOSA device
We are writing in response to your email of October 20, 2022, regarding your questions about the eXciteOSA device (the Device) and it’s eligibility for the medical expense tax credit (METC). More specifically you have asked if the Device is considered an electrotherapy device and whether it would be eligible for the METC if prescribed by a dentist or other medical practitioner.
Our understanding of the Device is that it is a neuromuscular electrical stimulator (NMES) that is used to tone and tighten the genioglossus, as a treatment for individuals who suffer from snoring or obstructive sleep apnea. It delivers a mild electrical current with defined frequencies to stimulate and improve muscle function in the mouth and tongue
Our comments:
This technical interpretation provides general comments about the provisions of the Income Tax Act (the 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 IC70-6R12, 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, an amount paid for a device or equipment may qualify as an eligible 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 conditions prescribed by the Regulations as to its use or the reason for its acquisition.
Under subsection 5700(z.2) of the Regulations, an electrotherapy device designed to be used by an individual with a medical condition or by an individual who has a severe mobility impairment is a qualifying device for the purposes of paragraph 118.2(2)(m) of the Act. As the Device provides a therapeutic use of electricity and it has been designed for the treatment of obstructive sleep apnea, it is our view that the Device would be considered a qualifying electrotherapy device for the treatment of obstructive sleep apnea under subsection 5700(z.2) of the Regulations. Provided the remaining conditions included in paragraph 118.2(2)(m) of the Act are met (as noted above), the Device could be considered an eligible medical expense.
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
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, 2022
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, 2022
Email this Content