19 June 1997 External T.I. 9712065 - DEDUCTIBILITY OF CERTAIN MEDICAL PROCEDURES, SERVICES

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:

1.Are block fees deductible

2.Are certain medical devices whose use is non-medical or cosmetic deductible ?

Position:

1.no, unless service is renderred
2.no, use must be as prescribed in the Regulations

Reasons:

1. not a medical service until service is renderred
2. Reg 5700

                                        	971206
XXXXXXXXXX		                              C. Tremblay

Attention: XXXXXXXXXX

June 19, 1997

Dear Madam:

Re: Deductibility of certain medical procedures, items and services

This is in reply to your letter of April 24, 1997, wherein you requested information concerning the deductibility of annual block fees and medically necessary equipment.

In our view, payments made for the availability of medical service would not be for "medical services provided" for the purposes of paragraph 118.2(2)(a) of the Act. Accordingly, the payment of an annual block fee would not be a qualifying medical expense under paragraph 118.2(2)(a) of the Act, nor would it qualify as a "premium, contribution or other consideration" pursuant to 118.2(2)(q) of the Act. However, it is our view that a payment to a "medical practitioner" when medical services (such as for telephone advice, or for a prescription renewal) have been rendered by the practitioner would be a qualifying medical expense under paragraph 118.2(2)(a) of the Act.

Paragraph 118.2(2)(m) allows a deduction for medical equipment prescribed in section 5700 of the Income Tax Regulations (the "Regulations") that are prescribed by a medical practitioner and meet the conditions that have been prescribed as to its use or the reason for its acquisition. Section 5700 of the Regulations prescribes the following medical devices and equipment :

(a)a wig made in order for individuals who have suffered abnormal hair loss owing to disease, medical treatment or accident.

(b)a needle or syringe designed to be used for the purpose of giving an injection.

(c)a 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.

(c.1)an air or water filter or purifier for use by an individual who is suffering from a severe chronic respiratory ailment or a severe chronic immune system disregulation to cope with or overcome that ailment or disregulation.

(c.2)an electric or sealed combustion furnace acquired to replace a furnace that is neither an electric furnace nor a sealed combustion furnace, where the replacement is necessary solely because of a severe chronic respiratory ailment or a severe chronic immune system disregulation.

(d)a device or equipment designed to pace or monitor the heart of an individual who suffers from heart disease.

(e)orthopaedic shoe or boot or an insert for a shoe or boot made to order for an individual in accordance with a prescription to overcome a physical disability of the individual;

(f)power-operated guided chair installation, for an individual, that is designed to be used solely in a stairway;

(g)mechanical device or equipment designed to be used to assist an individual to enter or leave a bathtub or shower or to get on or off a toilet;

(h)hospital bed including such attachments thereto as may have been included in a prescription therefor;

(i)device that is designed to assist an individual in walking where the individual has a mobility impairment;

(j)external breast prosthesis that is required because of a mastectomy;

(k)teletypewriter or similar device, including a telephone ringing indicator, that enables a deaf or mute individual to make and receive telephone calls;

(l)optical scanner or similar device designed to be used by a blind individual to enable him to read print;

(m)power-operated lift or transportation equipment designed exclusively for use by, or for, a disabled individual to allow the individual access to different areas of a building or to assist the individual to gain access to a vehicle or to place the individual's wheelchair in or on a vehicle;

(n)device designed exclusively to enable an individual with a mobility impairment to operate a vehicle;

(o)device or equipment, including a synthetic speech system, braille printer and large print-on-screen device, designed exclusively to be used by a blind individual in the operation of a computer;

(p)electronic speech synthesizer that enables a mute individual to communicate by use of a portable keyboard;

(q)device to decode special television signals to permit the script of a program to be visually displayed;

(q.1)a visual or vibratory signalling device, including a visual fire alarm indicator, for an individual with a hearing impairment;

(r)device designed to be attached to infants diagnosed as being prone to sudden infant death syndrome in order to sound an alarm if the infant ceases to breathe;

(s)infusion pump, including disposable peripherals, used in the treatment of diabetes or a device designed to enable a diabetic to measure the diabetic's blood sugar level;

(t)electronic or computerized environmental control system designed exclusively for the use of an individual with a severe and prolonged mobility restriction;

(u)extremity pump or elastic support hose designed exclusively to relieve swelling caused by chronic lymphedema; and

(v)inductive coupling osteogenesis stimulator for treating non-union of fractures or aiding in bone fusion.

Your examples of a breast pump when the use is non-medical, a wig or hairpiece where the individual is sensitive and self conscious due to hair loss, alarm devices for bed-wetting children to alert to a wet bed, and non-prescription sunglasses due to sensitivity of the eyes to sunlight do not meet the criteria in section 5700 of the Regulations listed above and accordingly, are all non-deductible medical expenses.

We trust our comments will be of assistance to you.

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch