1 November 1994 Ministerial Letter 941568A - MEDICAL EXPENSES

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.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

The issue is whether costs of artificial insemination are eligible for the medical expense tax credit.

Position TAKEN:

It appears that the costs would qualify.

Reasons FOR POSITION TAKEN:

Consistent with the definition of "medical" in the Random House Dictionary (of or pertaining to the art of healing), the costs are considered to be of a medical nature for the purposes of paragraph 118.2(2)(a) of the Income Tax Act.

In addition, the inability of an individual and her husband to become natural parents without artificial insemination is considered to be a disability for the purposes of paragraph 118.2(2)(o) of the Act.

			941568
XXXXXXXXXX		M. Eisner

November 1, 1994

Dear XXXXXXXXXX:

Re: Medical Expenses

This is in reply to your letter of June 3, 1994 in which you requested a ruling on whether certain expenses qualify for the medical expense tax credit. We apologize for the delay in responding.

At the outset, we wish to mention that an advance income tax ruling, for which a fee is charged, is a written statement given by the Department in respect of a taxpayer stating how it will interpret specific provisions of the Income Tax Act (the Act) and is regarded as being binding on the Department. An advance income tax ruling involves a review of all the relevant facts and documentation in respect of specific proposed transactions. General information on advance income tax rulings is set out in Information Circular 70-6R2 and the related Special Release dated September 30, 1992 which have been enclosed. While a submission has not been made pursuant to Information Circular 70-6R2, we have proceeded to provide you with general comments on the matters you raised.

In your letter, you have indicated that you and your husband are currently undergoing diagnostic tests to determine whether special medical procedures need to be undertaken in order for you to bear a child. All diagnostic tests and artificial insemination procedures are covered by OHIP and the cost of fertility drugs will be covered under your husband's health insurance plan. However, the following monthly charges which are not covered by OHIP or the insurance plan, will be paid by you and/or your husband:

(a) In-vitro fertilization procedure;
(b) Daily ultrasound and daily blood tests once the in-vitro procedure is begun;
(c) Anaesthetist fees;
(d) Cycle monitoring fees; and
(e) Other miscellaneous fees associated with the in-vitro procedure.

In order for eligible expenses to qualify for the medical expense tax credit, the expenses must be paid by an individual in respect of oneself or one's spouse or dependant, as defined in the Act.

The Act describes the expenditures that are eligible for the credit in section 118.2. Included in such expenditures are those amounts paid to a medical practitioner, nurse, or to a public or licensed private hospital in respect of medical services. Accordingly, to the extent that the expenditures are described within these comments, they would be regarded as being eligible expenditures.

With respect to the above comments, we also note that we regard the services which are set out in (a) to (d) above to be of a medical nature. It is, unfortunately, not possible to comment specifically on (e) as the type of service has not been detailed. However, qualifying medical expenses also include the cost of laboratory, radiological and other diagnostic procedures or services, with necessary interpretations, for assisting in the treatment of any disability as prescribed by a medical practitioner. To the extent that the expenditures are described within these comments, they would also be regarded as being eligible expenditures.

We trust our comments will be of assistance to you.

Yours truly,

J.A. Szeszycki
for Director
Business and General Division
Rulings Directorate
Policy and Legislation Branch

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