30 January 2012 External T.I. 2011-0429871E5 - Medical expenses - Rehabilitive splinting system

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.

Principal Issues: Whether an amount paid by the taxpayer for a rehabilitive splinting system to stretch the tissue in the elbow would qualify as a medical expense for purposes of calculating the medical expense tax credit.

Position: Likely yes.

Reasons: Paragraph 118.2(2)(i) of the Income Tax Act applies to different devices, including a brace for a limb.

XXXXXXXXXX
				2011-042987
				André Gallant

January 30, 2012

Dear XXXXXXXXXX :

Re: Medical expenses

We are writing in reply to your letter sent to the XXXXXXXXXX Tax Centre and forwarded to us. You enquire whether the cost of a rehabilitative splinting system prescribed by a surgeon to progressively stretch the tissue in your elbow would qualify as an eligible medical expense for the purposes of the medical expense tax credit ("METC").

The surgeon made a specific recommendation for a Joint Activation System (JAS) Elbow manufactured by Joint Active Systems, Inc. It is our understanding that the device is made to measure based on seven different measurements of the arm.

Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of the Income Tax Act (the "Act"). If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2) of the Act, or if the conditions under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the METC, even though the expenditure may have been incurred for medical reasons.

Paragraph 118.2(2)(i) of the Act allows as an eligible medical expense amounts paid for, or in respect of, a brace for a limb for the patient. As stated in the Interpretation Bulletin IT-519R2 (Consolidated), Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, in paragraph 39, a "brace for a limb" does not necessarily have to be something of a rigid nature, although at least one of the functions of the brace must be to impart some degree of rigidity to the limb which is being braced.

Based on the information provided, it is our view the JAS Elbow may qualify as a brace for a limb under paragraph 118.2(2)(i) of the Act.

We trust our comments will be of assistance to you.

Yours truly,

G. Moore
for Director
Business and Trusts Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch