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.
Whether or not a special device which decodes special television signals to permit the script of a program to be visually displayed would be deductible as a medical expense by virtue of Regulation 5700(q) of the Act when built into a specialized television set, as opposed to a device separate and apart from the television set.
Cost equivalent value of device would still be deductible.
Reasons FOR POSITION TAKEN:
Comparable to our position on prescribed devices added to vans, or purchased as part of customized vans.
December 13, 1994
St. Catherines District Office HEAD OFFICE
Client Assistance Rulings Directorate
Attention: Jim Harrison
Regulation 5700(q) Medical Devices and Equipment
This is in response to your memorandum of July 26, 1994 in which you requested confirmation of reply received by your district office during a July 25, 1994 telephone enquiry to this directorate with respect to the above noted regulation of the Income Tax Act ("the Act"). We apologize for the delay in replying.
The issue as understood from the original enquiry and confirmed in your memorandum, is whether or not a special device which decodes special television signals to permit the script of a program to be visually displayed would be deductible as a medical expense by virtue of Regulation 5700(q) of the Act when built into a specialized television set, as opposed to a device separate and apart from the television set. It is also our understanding that with the exception of the device, these specialized television sets are comparable to an ordinary television set.
In order to be eligible for the medical expense credit an item of special equipment, such as a specialized television set, would have to be prescribed and listed in Regulation 5700 of the Act. In addition, the device must be prescribed by a medical practitioner, not be described in any other paragraph of 118.2(2) of the Act and meet such conditions as may be prescribed in Regulation 5700 as to its use or the reason for its acquisition. More specifically, Regulation 5700(q) of the Act states that for the purposes of paragraph 118.2(2)(m) of the Act, a device is prescribed if it is designed to decode special television signals to permit the script of a program to be visually displayed (the "device"). Since a specialized television set as described in your memorandum is not provided for in that regulation, it is not eligible for the medical expense credit under subparagraph 118.2(2)(m) of the Act with the exception of the device. The fact that the device is not separate and apart from the specialized television set would not in our opinion preclude a claim for the cost equivalent value of the device. We therefore suggested during the original telephone enquiry, and it is still our opinion, that a reasonable method of determining the cost equivalent value of the device for a taxpayer would be to determine the cost of a comparable television set without the device to the cost of the specialized television set with the device and make a claim for the difference. In addition, it should be noted that to be deductible as a medical expense, the device must have been prescribed by a medical practioner and meet any other pertinent requirements of subsection 118.2(2) of the Act.
We trust our comments will be of assistance in replying to the client.
Personal and General Section
Business and General Division
Policy and Legislation Branch
c.c. Client Assistance Directorate
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, 1994
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, 1994