6 February 1996 External T.I. 9533105 - 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:

Whether an amount paid to a medical practitioner for hair transplant surgery can be regarded as having been made "in respect of ... medical services" for the purposes of paragraph 118.2(2)(a) of the Income Tax Act.

Position:

Generally yes

Reasons:

Based on past correspondence, it is the Department's position that there is a presumption that the payment is beneficial to the patient's health.

									953310
XXXXXXXXXX							M. Eisner

Attention: XXXXXXXXXX

February 6, 1996

Dear Sirs:

Re: Medical Expenses

This is in reply to your letter of December 14, 1995 concerning hair transplant surgery and the medical expense tax credit.

In order for a payment made by an individual for hair transplant surgery to be regarded as being a qualifying medical under paragraph 118.2(2)(a) of the Income Tax Act (the Act), one of the requirements is that the payment must have been made in respect of the individual, the individual's spouse, or a dependant of the individual as defined in subsection 118(6) of the Act. The comments below have been made on the assumption that this requirement has been satisfied.

Under paragraph 118.2(2)(a) of the Act, an amount paid to a medical practitioner (as defined in subsection 118.4(2) of the Act) in respect of medical services is a qualifying medical expense. In order for a payment to be regarded as having been made in respect of medical services, it is our view that the payment must involve a medical condition which can include the mental health of the patient. However, we are also adding that when an amount is paid to the medical practitioner in respect of hair transplant surgery, there is a presumption that the surgery is beneficial to the patient's health. As a consequence, it is the Department's position that the amount paid to the medical practitioner can generally be regarded as being an expense that qualifies under paragraph 118.2(2)(a) of the Act.

We trust our comments will be of assistance to you.

Yours truly,

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