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:
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.
Position TAKEN:
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
D. Zion
(613) 957-8953
Attention: Jim Harrison
Assistant Director
941950
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.
P.D. Fuoco
Section Chief
Personal and General Section
Business and General Division
Rulings Directorate
Policy and Legislation Branch
c.c. Client Assistance Directorate
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