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.
MINISTER/DM'S OFFICE 93-33365T ADM'S OFFICE RETURN TO RULINGS, ROOM 303, MET. BLDG.
XXXXXXXXXX
Dear XXXXXXXXXX
I am replying to your letter of May 19, 1993, in which you ask about the tax assistance available in respect of the purchase of a computer and software to be used to help teach autistic children how to communicate with others. I apologize for the delay of my response.
The types of expenses which qualify for the medical expense tax credit are specifically set out in the Income Tax Act and its regulations. While the equipment you describe does not appear to qualify for the credit, a proper determination can only be made upon review of equipment specifications and the purpose for which it was designed. If you feel that the equipment might fall within one of the descriptive categories described on pages 16 and 17 of the enclosed Interpretation Bulletin IT-519 "Medical Expense and Disability Tax Credit" and the equipment was prescribed by a medical practitioner, please submit the details of such equipment and software to Mr. Bryan Dath, Director, Business and General Division, Rulings Directorate. He can be reached by calling (613) 957-2089 collect or by writing to 88 Metcalfe Street, 3rd Floor, Metcalfe Building, Ottawa, Ontario, K1A 0L8.
With respect to the Goods and Services Tax (GST), the GST is added at the rate of seven per cent to the price of all goods and services sold or provided in Canada, unless a relieving provision of the Excise Tax Act (ETA) applies. Under the ETA, prescription drugs and certain medical devices do not attract the tax. The medical devices that qualify for tax-free treatment are listed in GST Memorandum 300-3-2, "Medical Devices", a copy of which I have enclosed for your information. You will notice that point 24 on page 13 of this memorandum lists communication devices which are unconditionally relieved of the GST. Included in this are all software packages for use by vision, speech and hearing impaired individuals. Therefore, while a computer is not relieved of the tax, the special software packages which you imported from the U.S.A. should have been allowed tax-free entry into Canada if they met the criterion mentioned above.
In addition, all software packages, except for packages on a CD ROM format, are allowed duty-free entry into Canada. Therefore, you may be eligible for a rebate of the duty paid if the software package which you imported met this criterion. A departmental official attempted to contact you for additional information but was unable to obtain a telephone number where you could be reached. In order to determine the rebate to which you might be entitled, please contact the Customs office which processed the goods you imported.
Should you have any further questions regarding the administration of the GST as it relates to medical devices, you may wish to contact Mr. Adrien Venne, Director, Tax Policy - Special Sectors, at (613) 954- 7656. Mr. Venne's mailing address is 9th Floor, Tower C, 25 McArthur Avenue, Ottawa, Ontario K1A 0L5.
I trust you will find this information to be of assistance.
Yours sincerely,
Pierre Gravelle, Q.C.
Att. c.c. Adrien Venne, Director, Tax Policy - Special Sectors, G.S.T.
August 26, 1993
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