9 September 1997 External T.I. 9708305 - HOMEOPATHY,ENZYMES,PILLOW CVRS,VACUUMS, DUSK MASK

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:

medical expenses - digestive enzymes and homeopathic substitutes that are not recorded in a pharmaceutical register and equipment such as vent covers, pillow & mattress covers, dust masks and vacuums

Position:

not eligible under para 118.2(2)(k),(n) or (m) but when homeopathic substitutes and digestive enzymes are provided as part of the medical service, the fees paid to a medical practitioner for such substances qualifies under paragraph 118.2(2)(a)

Reasons:

do not meet requirements of the relevant provisions

A. Humenuk
XXXXXXXXXX		                                970830

September 9, 1997

Dear Sir\Madam:

Re: Interpretation Bulletin IT-519R

We are replying to your letter received on March 26, 1997, in which you ask whether certain items purchased for medical reasons are eligible for the medical expense tax credit.

Expenses which are eligible for the medical expense tax credit are limited to those described in subsection 118.2(2) of the Income Tax Act (the "Act"). Certain provisions in subsection 118.2(2) of the Act impose conditions which must be met in order for a particular expense to qualify as a medical expense for income tax purposes. If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2) of the Act, or if the conditions under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the medical expense tax credit, even though the person may have had a medical reason for making the expenditure. The various categories of eligible medical expenses are described in paragraphs 21 to 66 of Interpretation Bulletin IT-519R, Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction.

Drugs, medicaments or other preparations or substances prescribed by a medical doctor or medical practitioner only qualify as a medical expense for income tax purposes if they meet the conditions set out in paragraphs 118.2(2)(k) or (n) of the Act. If the substance is received as part of the medical service provided by a medical practitioner, the fees paid to the medical practitioner will qualify under paragraph 118.2(2)(a) of the Act.

As you correctly note, drugs, medicaments or other preparations or substances (other than the substances described in paragraph 62(a) of the bulletin) only qualify as a medical expense if they are prescribed by a medical practitioner or dentist and are purchased from a pharmacist who has recorded the prescription in the pharmaceutical record. Thus, over-the-counter medication (other than those described in paragraph 62(a) of the bulletin) does not qualify as a medical expense for income tax purposes.

We presume that the reason for your question concerning digestive enzymes and homeopathic substitutes is that these items are not dispensed by a pharmacist and thus, not recorded in a pharmaceutical record. Accordingly, the cost of such items would only qualify as a medical expense for income tax purposes if it were included as part of the fee paid to a medical practitioner for medical services rendered.

The other items mentioned in your letter, namely vent covers for a furnace, pillow and mattress covers, dust masks and a vacuum, can generally be described as equipment. As explained in paragraph 58 of the bulletin, the cost of such items will only qualify as a medical expense if it meets the conditions described in paragraph 118.2(2)(m) of the Act. The relevant part of section 5700 of the Income Tax Regulations (the "Regulations") states:

(c) device or equipment, including a replacement part, designed exclusively for use by an individual suffering from a severe chronic respiratory ailment or a severe chronic immune system disregulation, but not including an air conditioner, humidifier, dehumidifier, heat pump or heat or air exchanger;

While some vacuums are designed for air filtration, as well as for cleaning carpets, we are unaware of any vacuum that is designed exclusively for use by an individual suffering from a severe and chronic respiratory ailment or immune disorder. As a result, the cost of a vacuum would not qualify as a medical expense under subsection 118.2(2) of the Act. Similarly, dust masks are not designed exclusively for individuals with severe and chronic respiratory or immune system disregulation, in that such devices are useful for anyone who works in a dusty environment.

We are unfamiliar with the specific vent and pillow and mattress covers mentioned in your letter or with the registration systems under which these products were registered. The registration numbers referred to in your letter appear to belong to foreign jurisdictions, such as the United States or the European Community. Since the definition of a medical expense for the purposes of those registration systems does not necessarily correspond with the definition in subsection 118.2(2) of the Act, the product registration number is not relevant for the purposes of the medical expense tax credit.

When the intention to add paragraph (c) to section 5700 of the Regulations was first announced in December 1988, the Department of Finance released a Press Release which provided examples of devices which qualify and those which do not. Among the devices and equipment which do not qualify under this provision, the Press Release listed natural-material clothing and bedding, organic food and bottled water. Due to the generic nature and design of vent covers and pillow and mattress covers, it is unlikely that such items would qualify as medical expenses for income tax purposes.

If you wish us to consider the matter further, please provide a complete description of the products, including the manufacturer's design specifications and any submissions that were made in respect of the existing registrations. The information must show that the product was designed exclusively for persons with a severe and chronic respiratory ailment or immune system disorder. However, please note that, even if these items were to qualify under paragraph 5700(c) of the Regulations, the cost of the items would only qualify as a medical expense if the individual had a chronic and severe respiratory ailment or immune disorder. Therefore, a medical expense claim for a device listed in paragraph 5700(c) of the Regulations should be accompanied by a letter from the patient's medical practitioner confirming this diagnosis. While this includes an individual with severe and chronic asthma, it does not include an individual with seasonal allergies or a sensitivity to a particular substance.

While we recognize that you purchased the items mentioned above for medical reasons, an expenditure will only qualify as a medical expense if it meets the requirements set out in subsection 118.2(2) of the Act. If you wish to suggest changes to the Act or the Regulations, you should contact the Department of Finance, whose responsibility it is to consider such matters.

We trust our comments have clarified the Department's position with respect to medical expenses.

Yours truly,

C. Chouinard
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch

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