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 the cost for a new procedure in the treatment of Type III Stress Incontinence would qualify as a medical expense.
Position TAKEN:
From the limited information provided it would appear that it would qualify.
Reasons FOR POSITION TAKEN:
The new procedure is performed in a hospital on a day surgery basis and is performed by a Urologist thereby satisfying two of the critical tests within paragraph 118.2(2)(a) of the Act.
951271
XXXXXXXXXX J.A. Szeszycki
Attention: XXXXXXXXXX
August 15, 1995
Dear Sirs:
Re: Qualification of New Medical Procedure for the Medical Expense Tax Credit
This is in reply to your letter of April 24, 1995 in which you referred to previous correspondence dated January 31, 1995 wherein you described a newly developed medical procedure for the treatment of Type III Stress Incontinence. You have enquired as to whether the cost of the procedure, about $3,500, would qualify as a medical expense for the purposes of the medical expense tax credit calculation. We regret the delay in providing you with this response.
In order for a payment made by a taxpayer to be considered as a medical expense for the calculation of the medical expense tax credit the payment must be one that is described in subsection 118.2(2) of the Income Tax Act. Paragraph (a) of that provision requires that the amount be paid
"to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of medical or dental services provided to a person...who is the individual, the individual's spouse or a dependant of the individual...in the taxation year in which the expense was incurred;" (emphasis added)
A medical practitioner is a person who is authorized to practice as such pursuant to the laws of the jurisdiction in which the medical service is rendered or if paid to a medical facility that facility must be a public or licensed private hospital.
You describe the new treatment for stress incontinence as a procedure that can be performed in a hospital day surgery facility by a urologist. Based solely on this brief description it would appear that the new treatment would qualify as a medical service and its cost to the taxpayer (assuming the taxpayer is a person described above) would qualify as a medical expense for the purpose of the medical expense tax credit.
For your information we are enclosing the most recent version of interpretation bulletin IT-519R "Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction", dated February 20, 1995 and refer you to paragraphs 4, 5, 22 and 67.
We trust our comments will be of assistance to you.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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