20 April 1995 Internal T.I. 9507077 - 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:

1) Can payments to a registered music therapist be considered a payment made to "a medical practioner ... in respect of medical services"?

2) Can a service for which the fee is not deductible as a medical expense because it was not paid to a medical practioner, still be considered a medical service for the purpose of paragraph 118.2(2)(h)?

More specifically:

1) Mileage and meals claimed by parents (caregivers) to attend conferences which deal with techniques and theories on the care of individuals with learning problems, disabilities etc

2) Mileage and meals claimed to attend Music Therapy sessions, plus Music Therapy fees.

Position TAKEN:

1) XXXXXXXXXX

there are currently no statutes (federal or provincial) that specifically govern the profession of music therapy. Therefore, any fees paid to the music therapist for professional services would not qualify as medical expenses for purposes of subsection 118.2(2) of the Act.

2) Sufficient documentation has been provided to satisfy us that the service provided by the therapist can be considered a medical service. Thus, the travel expenses incurred in respect of the patient and only one of his parents would qualify as an eligible medical expense pursuant to 118.2(2)(h) of the Act.

3) With respect to the traveling expenses incurred to attend the conferences, it is our view there is no provision in subsection 118.2(2) of the Act to allow the deduction of these amounts as medical expenses.

Reasons FOR POSITION TAKEN:

See above for reasons. Previous correspondence.

		April 20, 1995

	Regina Tax Services	HEADQUARTERS
	Business Audit	Income Tax Rulings and
		  Interpretations 		Directorate
	Attention: Brian Gilbert	D. Zion
(613) 957-8953

950707

Medical Expenses

We are writing in reply to your memorandum of March 14, 1995, in which you request our opinion as to whether certain expenses incurred by XXXXXXXXXX would qualify as medical expenses pursuant to 118.2(2) of the Income Tax Act (the "Act").

As we understand the situation,

XXXXXXXXXX

As a result, they have incurred certain expenses which they feel should qualify as medical expenses but that have been disallowed by your office upon reassessment of XXXXXXXXXX 1993 income tax return. The disallowed expenses are as follows:

a)Mileage and meals claimed for travel to attend conferences,

b)Mileage and meals claimed to attend music therapy sessions,

c)Music therapy fees paid to an accredited music therapist for the music therapy sessions described in item b.

More specifically, you have asked us to address whether or not the expenses of the parents of the patient travelling to and from conferences for the information of the parents, as primary caregivers, are allowable medical expenses. You have also asked whether or not the expenses of travelling to and from, as well as the fees for, the music therapy sessions can be considered eligible medical expenses.

XXXXXXXXXX

Our Comments

Paragraph 118.2(2)(a) of the Act states that a medical expense of an individual is an amount paid "to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of medical or dental services...". Paragraph 118.4(2)(a) of the Act states, inter alia, that for the purposes of 118.2 of the Act, a reference to a medical doctor, medical practitioner, dentist, pharmacist, nurse or optometrist is a reference to a person authorized to practice as such, "where the reference is used in respect of a service rendered to a taxpayer, pursuant to the laws of the jurisdiction in which the service is rendered". Accordingly, to the extent that the expenditures are described within these comments, they would be regarded as being eligible medical expenses.

In order for the fees paid to a music therapist to be an eligible medical expense, the music therapist must be considered a "medical practitioner" and they must be in respect of a medical service. Pursuant to subsection 118.4(2) of the Act, to be considered a medical practitioner, the music therapist must be authorized to practice as such pursuant to the laws of the jurisdiction in which the service is rendered. During the course of our research we contacted

XXXXXXXXXX

there are currently no statutes (federal or provincial) that specifically govern the profession of music therapy. Thus, in view of the forgoing, it is our opinion that any fees paid to the music therapist for professional services would not qualify as medical expenses for purposes of subsection 118.2(2) of the Act.

The next issue we proceeded to review was whether or not the travelling expenses related to attending the music therapy sessions would qualify as eligible medical expenses. The provision in the Act which specifies the costs which qualify for the medical expense tax credit provides that travel expenses qualify if certain criteria are satisfied. Specifically, the travel expenses must be reasonable in amount and have been incurred in connection with the transportation of a patient who is a taxpayer, his spouse or a dependant and in respect of only one individual who accompanied the patient. The patient must have been certified by a medical practitioner to be incapable of travelling without the assistance of an attendant and must have been transported not less than 40 kilometres, in a reasonably direct route, to obtain medical services which were not available closer to the locality where the patient dwells.

XXXXXXXXXX contends that the travelling expenses of both he and his wife to obtain the music therapy services for XXXXXXXXXX should be considered allowable as medical expenses. For purposes of the Act, "medical services" relate to services provided by various health professionals and related institutions. Based on information provided to us by XXXXXXXXXX and the client, we are of the opinion that the services provided to XXXXXXXXXX by the music therapist are in the nature of medical services notwithstanding that a music therapist is not considered a medical practitioner for the purpose of subsection 118.2(2) of the Act. Accordingly, if the other requirements of paragraph 118.2(2)(h) of the Act have been met, the travel expenses incurred in respect of XXXXXXXXXX and one of his parents would qualify as an eligible medical expense pursuant to this provision.

Finally, with respect to the travelling expenses incurred to attend the conferences, it is our view there is no provision in subsection 118.2(2) of the Act to allow the inclusion of these amounts as qualifying medical expenses for the purpose of the medical expense tax credit.

We trust that our comments will be of assistance.

P.D. Fuoco
Section Chief
Personal and General Section
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch

c.c. Lynn Lecuyer
Room 1101
123 Slater