25 January 2012 External T.I. 2011-0429001E5 - weight loss program - METC

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 the cost of a weight management program would qualify as a medical expense.

Position: Question of fact but it appears that the payments are made in respect of medical services performed by medical practitioners. However, the cost of personal trainers is not allowable as a medical expense as they are not medical practitioners in the province of Ontario.

Reasons: See 118.2(2)(a) and (o).

XXXXXXXXXX
					2011-042900

January 25, 2012

Dear XXXXXXXXXX :

Re: Weight Loss Program - Medical Expense Tax Credit

This is in response to your email of November 22, 2011, regarding medical expenses.

You are asking whether amounts paid for a weight loss treatment program qualify as a medical expense for purposes of the medical expense tax credit ("METC"). You indicate that the program is offered at a medical clinic with a fitness facility on-site, and includes the services of medical doctors, registered dietitians, psychologists, and personal trainers. You are also asking whether the fees paid for fitness activities led by personal trainers qualify as a medical expense.

Our Comments

Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of 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)(o) of the Act allows as an eligible medical expense amounts paid for laboratory, radiological or other diagnostic procedures or services prescribed for a patient by a medical practitioner or dentist. Under this provision, the diagnostic procedures or services (together with the necessary interpretations) must be for maintaining health, preventing disease or assisting in the diagnosis or treatment of any injury, illness or disability. The reference to "other diagnostic procedures or services" is generally limited to diagnostic services or procedures of the same class as laboratory or radiological services. In other words, the procedures or services must assist a medical practitioner in making a diagnosis and formulating a course of treatment.

Fees paid to a weight-loss clinic would not qualify as a medical expense under paragraph 118.2(2)(o) unless such fees are paid for a procedure or service of a diagnostic nature and the other conditions in the provision are met. However, fees for a weight-loss clinic may qualify under paragraph 118.2(2)(a) of the Act if all the conditions of that provision are met.

Pursuant to paragraph 118.2(2)(a) of the Act, an amount is considered to qualify as a medical expense for the purposes of the METC if it is paid to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of medical or dental services. In general terms, a "medical practitioner" is a person who is authorized by a province or other jurisdiction to act as a medical practitioner. In our view, a person is authorized by a province or other jurisdiction to act as a medical practitioner if there is specific legislation that enables, permits or empowers the person to practice as such.

An amount paid by an individual in respect of a "medical service" provided by a licensed medical practitioner would qualify as a medical expense eligible for the METC where the amount is paid directly to the medical practitioner or to a corporation that employs the medical practitioner. A "medical service" is a service relating to the diagnosis, treatment or prevention of disease performed by a medical practitioner acting within the scope of his or her professional training. In our view, a weight-loss program would be considered a medical service when the program is offered to an individual for therapeutic or rehabilitative reasons. Accordingly, in our view, fees paid to a weight-loss clinic by an individual in respect of a weight-loss program would qualify for the METC where the services are provided by a medical practitioner who is so authorized to act as such in the province in which the services are rendered.

You have also asked whether the cost of personal trainers would qualify as a medical expense. We are unaware of any provincial legislation that authorizes and regulates personal trainers. Since personal trainers do not appear to be authorized as medical practitioners under the laws of Ontario, payments made to personal trainers would not qualify as medical expenses.

Further information on medical expenses may be found in Interpretation Bulletin IT-519R2 (Consolidated), Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, which is posted on the CRA Web site at www.cra-arc.gc.ca.

We trust our comments will be of assistance to you.

Yours truly,

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