23 June 1998 External T.I. 9809995 - 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: Whether transportation charges to have a prescription filled would be allowable as a medical expense.

Position: No.

Reasons: Paragraph 118.2(2)(n) deduction for “an amount paid for drugs, medicaments or other preparations or substances ... purchased for use ... as prescribed” cannot be interpreted to include the cost of transporting the drugs. There is a negative implication from the other provisions in 118.2(2) - e.g. paragraphs (g), (h) and (l.1) - that explicit authority is required to cover transportation costs.

		June 23, 1998

	Saskatoon Tax Services Office	HEADQUARTERS
A. White, Director

	Attention:  Myrene Mollison
	                 Client Services
		980999

Travel Expenses Incurred to Obtain Prescription Drugs

This is in reply to your memorandum of April 15, 1998, in which you request our views with respect to the qualification as medical expenses of costs incurred by a taxpayer to travel a distance of 85 kilometres to the nearest pharmacy to fill a prescription required to control diabetes.

In our view, the cost of transportation incurred by a taxpayer to obtain drugs and medication will not qualify as a medical expense under paragraph 118.2(2)(n) of the Income Tax Act. Our interpretation of the words in paragraph 118.2(2)(n) is supported by the explicit provision for transportation expenses as set out in other parts of subsection 118.2(2) of the Act. For example, paragraphs 118.2(2)(g), (h) and (l.1) of the Act are necessary because the amount paid for “medical services” which is made deductible under paragraph 118.2(2)(a) of the Act would not include the expense of transporting the patient and/or donor to the site of medical services. Thus, an “amount paid for drugs” does not include the cost of transportation to obtain the drugs.

We trust that these comments are of assistance.

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