2 April 1998 Ministerial Letter 9808328 - ELIGIBILITY OF "NUTRIENTS" AS MEDICAL EXPENSE

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:

Do vitamins and minerals prescribed by a doctor qualify for the medical expense credit?

Position:

Only if purchased under prescription from a licensed pharmacist who records the prescription.

Reasons:

clear wording of 118.2(2)(n)

		April 2, 1998

	Ministerial Correspondence Division	HEADQUARTERS
		Nicole Mondou, M.Fisc.
	Attention:  Richard Gendron, Manager	(613) 957-8961
		980832

Your Docket 98-01528M
Eligibility of “nutrients” as medical expenses

As requested, please find our comments for inclusion in a letter to XXXXXXXXXX concerning the eligibility of vitamins and other nutrients as medical expenses.

To qualify as medical expenses under the Income Tax Act (the "Act"), the expenses such as those you describe in your letter must meet the criteria set out in paragraph 118.2(2)(k) or (n) of the Act. These provisions are discussed in paragraphs 59 and 62 of Interpretation Bulletin IT-519R (“Medical expense and disability tax credits and attendant care expense deduction”), a copy of which you indicate you have.

Paragraphs 118.2(2)(k) and (n) of the Act read as follows:

“(...a medical expense of an individual is an amount paid)

...

(k) for an oxygen tent or other equipment necessary to administer oxygen or for insulin, oxygen, liver extract injectible for pernicious anaemia or vitamin B12 for pernicious anaemia, for use by the patient as prescribed by a medical practitioner;

...

(n) for drugs, medicaments or other preparations or substances (other than those described in paragraph (k)) manufactured, sold or represented for use in the diagnosis, treatment or prevention of a disease, disorder, abnormal physical state, or the symptoms thereof or in restoring, correcting or modifying an organic function, purchased for use by the patient as prescribed by a medical practitioner or dentist and as recorded by a pharmacist;”

These are the two categories of drugs, medicaments or other preparations or substances referred to in paragraph 62 of Interpretation Bulletin IT-519R.

More particularly, with respect to vitamins and other nutrients, the cost of liver extract that is injectible and vitamin B12 specifically qualify as medical expenses under paragraph 118.2(2)(k) of the Act if these substances are prescribed by a medical practioner for a person with pernicious anaemia. In these circumstances, the patient can purchase the substance over the counter.

The cost of other vitamins or nutrients, as well as liver extract and vitamin B12 required by patients who do not suffer from pernicious anaemia, may qualify as a medical expense if they meet the requirements set out in paragraph 118.2(2)(n) reproduced above. This paragraph, as it currently reads, requires that the drugs, medicaments and other preparations be:

prescribed by a medical practioner,

sold by a licensed pharmacist who records the prescription, and

manufactured, sold or represented for, among other things, use in treating or preventing a disease, disorder or abnormal physical state, or treating the symptoms of such a disease, disorder or physical state.

To support their claim, taxpayers must provide Revenue Canada with proper receipts issued by the pharmacist to evidence the purchase.

The requirements of paragraph 118.2(2)(n) set out above do not preclude claims in respect of drugs and other substances, including vitamins and minerals, which also happen to be available over the counter without a prescription. As long as the use of the substance in question is prescribed by a medical practitioner and dispensed by a licensed pharmacist who records the prescription, the cost of the substance would qualify as a medical expense. The added cost associated with prescription handling might, however, negate the benefit derived from the tax credit.

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