22 November 2011 External T.I. 2011-0401711E5 - Whether diagnostic procedure qualifies for 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 charges by a fertility clinic would qualify under paragraph 118.2(2)(o) of the Act.

Position: They appear to qualify to the extent that they relate to cycle monitoring fees.

Reasons: Paragraph 59 of IT-519R2.

XXXXXXXXXX 					2011-040171
						J. Gibbons, CGA

November 22, 2011

Dear XXXXXXXXXX :

Re: Diagnostic process

We are replying to your email dated April 5, 2011, concerning whether amounts charged by a fertility clinic would qualify for the medical expense tax credit ("METC") under subsection 118.2(2) of the Income Tax Act (the "Act").

In particular, the charges relate to the process undertaken by the clinic to chart an accurate monthly fertility cycle. This supplements the information gathered through laboratory blood tests and ultrasounds, all of which assists the medical practitioner in diagnosing and treating the particular fertility problem.

Our Comments

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. In the case of fertility treatments, paragraph 59 of Interpretation Bulletin IT-519 indicates that the following expenses involved with artificial insemination qualify under paragraph 118.2(2)(o) of the Act:

(a) the in-vitro fertilization procedure;
(b) daily ultrasound and blood tests once the in-vitro procedure has begun;
(c) anaesthetist fees; and
(d) cycle monitoring fees.

Although it is a question of fact whether particular fees qualify under paragraph 118.2(2)(o) of the Act, it appears that the charges described in your letter relate to cycle monitoring. Accordingly, it is our view the fees would qualify as eligible medical expenses under paragraph 118.2(2)(o) for purposes of the METC.

We trust these comments will be of assistance.

Yours truly,

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