21 May 1996 External T.I. 9609305 - HAIR TRANSPLANTS

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.

		960930
XXXXXXXXXX	M. Eisner

Attention: XXXXXXXXXX

May 21, 1996

Dear Sirs:

Re: Medical Expenses

This is in reply to your letter of March 12, 1996, concerning hair transplant surgery and the medical expense tax credit.

You have described a hypothetical situation where a medical doctor performs hair transplant surgery on a patient. Prior to the surgery, a medical doctor with extensive training in the psychological field, evaluates the patient and addresses hair transplant surgery as part of the treatment in connection with the patient's mental health.

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. In our view, the payment made to the medical practitioner in respect of hair transplant surgery would normally qualify as a medical expense under paragraph 118.2(2)(a) of the Act.

We trust our comments will be of assistance to you.

Yours truly,

John F. Oulton
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch