18 December 1997 External T.I. 9725015 - MEDICAL EXPENSES-HIPPOTHERAPY & THERAPEUTIC riding

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.

J. Gibbons
XXXXXXXXXX 5-972501

December 18, 1997

Dear XXXXXXXXXX:

We are replying to your letter of September 11, 1997, in which you inquire whether hippotherapy and therapeutic riding costs are eligible medical expenses. The information you provided indicates that hippotherapy and therapeutic riding is a form of patient therapy which involves horseback riding, the benefits of which may include improvements in muscle tone, joint mobility, postural control, fitness, balance, equilibrium reactions and functional activities.

Subsection 118.2(2) of the Income Tax Act (the "Act") lists the medical expenses that qualify for purposes of the medical expense tax credit under subsection 118.2(1) of the Act. As regards costs incurred with respect to animals, pursuant to paragraph 118.2(2)(l) of the Act, an amount paid for a specially-trained animal on behalf of a patient who is blind or profoundly deaf or has a severe and prolonged impairment that markedly restricts the use of the patient’s arms or legs qualifies as an eligible medical expense. The animal must be provided by a person or organization, one of whose main purposes is the training of such animals. Also included as eligible medical expenses under this paragraph are amounts paid for (i) the care and maintenance of such animals, (ii) reasonable travel expenses of the patient incurred for purposes of attending a school, institution or other facility that trains, in the handling of such animals, individuals who are so impaired, and (iii) reasonable board and lodging expenses of the patient incurred for the purpose of the patient’s full-time attendance at such a school, institution or other facility. Based on the information you have provided, in our view, it is unlikely that the costs associated with hippotherapy and therapeutic riding would qualify under paragraph 118.2(2)(l) of the Act, since it does not appear that the riding horses are specially trained to assist a patient in coping with the type of impairment described in this paragraph.

As explained during our telephone conversation (Gibbons/XXXXXXXXXX), any changes concerning the rules relating to medical expenses would require a change in tax policy and an amendment to the Act. Since tax policy issues and amendments to the Act are the responsibility of the Department of Finance, any changes to such rules would have to be considered by that Department.

We trust that these comments will be of assistance.

Yours truly,

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

.../cont’d

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