20 October 1986 Income Tax Severed Letter 5-1950 - [861020]

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.

T. D. Peters (613) 957-8953

October 20, 1986

This is in reply to your letter dated July 23, 1986, requesting our views concerning the qualification of a plan as a private health services plan for the purpose of paragraph 6(1)(a) of the Income Tax Act (the "Act").

You have stated that the Employee Assistance Program you wish to establish will operate as a "cost plus" plan as detailed in paragraph 6 of our Interpretation Bulletin IT- 339R. It would appear therefore that the program would be a. Private Health Services Plan provided the expenses covered would otherwise be considered medical expenses.

We confirm that clinical psychologists, qualified to practise under the laws of the province where the expenses were incurred, will be considered to be "medical practitioners" and as a result, fees paid for therapy or rehabilitation will qualify as medical expenses.

With respect to professional social workers, certified alcoholism counsellors or mental health professionals working in a recognized mental health clinic, community agency or hospital, the fees paid to these professionals will be considered medical expenses provided they are members of the association governing their particular profession and the treatment was at the request of or in association with a medical practitioner.

We trust these comments will be of assistance to you in this matter.

Yours truly,

André Dulude

for Director Financial Industries Division Rulings Directorate Legislative and Intergovernmental Affairs Branch