17 March 1998 External T.I. 9725345 - MEDICAL EXPENSE - OVER-THE-COUNTER DRUGS.

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.

		5-972534
XXXXXXXXXX		J. Gibbons
March 17, 1998

Dear XXXXXXXXXX:

We are replying to your letter of September 15, 1997, in which you request our views on the meaning of paragraph 62(b) in Interpretation Bulletin IT-519R. More specifically you inquire as to the meaning of the word “must” as used in the phrase “... drugs ... which a medical practitioner or dentist must have prescribed and which must be purchased from a pharmacist who has recorded the prescription in a prescription record.”

Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R3. The following comments are, therefore, of a general nature only.

Paragraph 62(b) of IT-519R provides the Department’s interpretation of paragraph 118.2(2)(n) of the Income Tax Act (the “Act”), which describes the “drugs” that qualify as medical expenses under subsection 118.2(2) of the Act. The particular phrase which is the subject of the interpretation is: “... drugs, medicaments or other preparations or substances ... purchased for use by the patient as prescribed by a medical practitioner and as recorded by a pharmacist.” In our view, this definition includes over-the-counter drugs, medicaments or other preparations or substances, which, under the circumstances of a particular case, a medical practitioner has prescribed for use and which have been dispensed by a licensed pharmacist who records the prescription and issues a proper receipt.

We trust that these comments will be of assistance.

Yours truly,

P. Spice
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch