28 May 1998 External T.I. 9812015 - TANNING MACHINE NOT A MED EX

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 costs of a tanning machine or fees paid to a tanning salon qualify for coverage under a phsp when prescribed by a doctor for relief from psoriasis

Position: no

Reasons:

phsp coverage is restricted to amounts described in 118.2(2) or an amount which is a medical expense as that term is commonly understood

XXXXXXXXXX 981201
A. Humenuk

Attention: XXXXXXXXXX

May 28, 1998

Dear XXXXXXXXXX:

Re: Use of a Tanning Machine for Relief from Psoriasis

This is in reply to your letter of May 1, 1998, in which you ask whether the purchase of, or fees paid for the use of, a tanning machine prescribed by a medical practitioner for the treatment of psoriasis qualifies as a medical expense for the purpose of determining whether a particular plan qualifies as a “private health services plan” as defined in subsection 248(1) of the Income Tax Act (the "Act").

As explained in paragraph 4 of Interpretation Bulletin IT-339R2, Meaning of “Private Health Services Plan”, in order to qualify as a private health services plan, coverage under a plan must be restricted to medical or hospital expenses which would normally have otherwise qualified as a medical expense for the purposes of the medical expense tax credit. You suggest that the effect of using a tanning machine is similar to that of other devices described in section 5700 of the Income Tax Regulations in that such usage improves the health of the individual and thus in your view, the expense “normally would otherwise have qualified as a medical expense” if such an expense had been prescribed by Regulation.

If a plan provides coverage for expenses other than those described in subsection 118.2(2) of the Act and such expenses are not of the nature which would generally be recognized as a medical expense within the ordinary meaning of that term, the plan will not qualify as a private health services plan. Since neither the cost of a tanning machine nor the fees paid for the use of such a machine qualify as a medical expense

for the purpose of subsection 118.2(2) of the Act, it is our view that a plan which provides for a reimbursement of such costs would not qualify as a private health services plan.

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