9 January 2012 External T.I. 2011-0427011E5 - METC- learning disability assessment

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 fees paid for a Learning Disability Assessment qualify as a medical expense for purposes of the medical expense tax credit (METC).

Position: Question of fact. The requirements of paragraph 118.2(2)(a) do not appear to be met; however, if the requirements of paragraph 118.2(2)(o) are met, the cost of the assessment may qualify if it is for diagnostic purposes.

Reasons: Psychometrists do not appear to be medical practitioners in the province of Ontario; therefore their services are not "medical services" under paragraph 118.2(2)(a). However, fees paid for a Learning Disability Assessment may qualify as medical expenses if the requirements of paragraph 118.2(2)(o) are met.

XXXXXXXXXX
						2011-042701
January 9, 2012

Dear XXXXXXXXXX :

Re: Medical Expense Tax Credit - Learning Disability Assessment

This is in response to your email of November 4, 2011.

You are asking whether the fees paid to a Psychometrist for a Learning Disability Assessment would qualify as a medical expense for purposes of the medical expense tax credit ("METC"). In your correspondence, you included a letter from your physician indicating that you require such an assessment.

Our Comments

Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of the Income Tax Act ("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)(a) of the Income Tax Act (the "Act") provides that eligible medical expenses include amounts paid to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of medical or dental services.

Paragraph 19 of IT-519R2 (Consolidated), Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, further clarifies that fees claimed under paragraph 118.2(2)(a) of the Act can qualify as being for "medical services" to the extent that these fees are for diagnostic, therapeutic or rehabilitative services. In other words, the services must assist a medical practitioner who is acting within the scope of his or her professional training in making a diagnosis or formulating a course of treatment.

In order to determine whether a particular medical practitioner qualifies as such under the Act, one must look to the relevant provincial legislation to determine whether the particular practitioner is authorized by statute. We are unaware of any provincial legislation that authorizes and regulates psychometrists in the province of Ontario. Since psychometrists do not appear to be authorized as medical practitioners under the laws of Ontario, payments made to a psychometrist would not qualify as a medical expense for the purposes of paragraph 118.2(2)(a) of the Act.

Pursuant to paragraph 118.2(2)(o) of the Act, qualifying medical expenses include amounts paid for laboratory, radiological or other diagnostic procedures or services, with necessary interpretations, for maintaining health, preventing disease or assisting in the diagnosis or treatment of an injury, illness, or disability as prescribed by a medical practitioner. The procedures or services must assist a medical practitioner in making a diagnosis and formulating a course of treatment. In our view, fees paid by an individual for a Learning Disability Assessment may qualify as a medical expense for purposes of the METC where it is to assist in the diagnosis or treatment of an injury, illness or disability as prescribed by a medical practitioner.

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