23 October 1995 Internal T.I. 9523196 - 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 an amount paid for hair transplant or other similar type of cosmetic surgery is a qualifying expense for the purposes of paragraph 118.2(2)(a) of the Income Tax Act (the Act). The amount is paid to a medical practitioner as defined in subsection 118.4(2) of the Act.

Position TAKEN:

The amount can generally be accepted as being a qualifying expense.

Reasons FOR POSITION TAKEN:

There is a presumption that the surgery is beneficial to the patient's health. The payment can generally accepted as being a qualifying expense as a consequence of the nature of the presumption.

		October 23, 1995

	Assessment of Returns Directorate	HEADQUARTERS
W. S. Hume	M. Eisner
	Director		(613) 957-8953

		952319

Medical Expense Tax Credit

This is in reply to the memorandum of August 30, 1995 submitted to us by Mr. R. Furlong of the Validation Section on the above-noted subject. We have been asked to comment on whether an amount paid for hair transplant or other similar type of cosmetic surgery is a qualifying medical expense under paragraph 118.2(2)(a) of the Income Tax Act (the Act). The amount is paid to a medical practitioner as defined under paragraph 118.4(2) of the Act.

In relation to the payment described above, the memorandum submitted to us indicates that the payment represents a qualifying medical expense provided that a medical condition is involved. Such a condition can include the mental health of the patient.

We are in agreement with the above comments. However, we are also adding that, in our view, when an amount is paid to a medical practitioner in respect of such surgery, there is a presumption that the surgery is beneficial to the patients's health. As a consequence of the nature of this presumption, it is our view that it would follow that the amount paid to the medical practitioner can generally be accepted as being a medical expense that qualifies under paragraph 118.2(2)(a) of the Act. We also note that these comments are consistent with the views set out in the copy of the letter you attached to your memorandum from XXXXXXXXXX.

For your general information, we also attach a copy of a letter which we recently issued on the subject of electrolysis.

Should you require further technical assistance, we would be pleased to provide our views.

B.W. Dath
Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch