25 May 2011 External T.I. 2011-0402881E5 - Weight Loss Program as a medical expense

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: (1) Whether a weight loss program qualifies as a medical expense. (2) Whether gym membership qualifies as a medical expense. (3) Whether exercise equipment qualifies as a medical expense

Position: (1) It is a question of fact, but in this case not likely. (2) No. (3) General information provided.

Reasons: (1) May qualify if provisions of 118.2(2)(a) are met. (2) Not allowable based on the provisions of the ITA (3) Insufficient information provided.

XXXXXXXXXX
						2011-040288
						Linda Compton
May 25, 2011

Dear XXXXXXXXXX :

Re: Medical expenses

This is in response to your correspondence of April 13, 2011, inquiring about whether fees for a weight loss program, the cost of exercise equipment, and the cost of a gym membership incurred for the treatment of obesity qualify as a medical expense for purposes of the medical expense tax credit ("METC").

Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of a request for an advance income tax ruling submitted in the manner set out in Information Circular 70-6R5, "Advanced Income Tax Rulings", dated May 17, 2002. This Information Circular and other Canada Revenue Agency ("CRA") publications can be accessed on the internet at http://www.cra-arc.gc.ca. Where the particular transactions are complete, the inquiry should be addressed to the relevant tax services office, a list of which is available on the "Contact Us" page of the CRA website. Although we cannot comment on your specific situation, we are prepared to provide the following comments in respect of the issues that you raised. Please note, however, that these comments are of a general nature only and are not binding on the CRA.

Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of the Income Tax Act ("Act").

Pursuant to paragraph 118.2(2)(a) of the Act, for an amount to qualify as a medical expense for the purposes of the METC, it must be paid to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of medical or dental services.

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.

Paragraph 118.2(2)(o) of the Act allows as an eligible medical expense amounts paid for diagnostic procedures or services prescribed for a patient by a medical practitioner or dentist. Under this provision, the diagnostic procedures or services must be for maintaining health, preventing disease or assisting in the diagnosis or treatment of any injury, illness or disability. The procedures or services must assist a medical practitioner in making a diagnosis and formulating a course of treatment.

Weight Loss Program

In our view, fees paid for a weight-loss program by an individual for the treatment of obesity would qualify for the METC where all the conditions of paragraph 118.2(2)(a) of the Act are met. Specifically, the program must be for therapeutic or rehabilitative purposes and must be provided by a medical practitioner who is so authorized to act as such in the province in which the services are rendered.

Similarly, fees paid for a weight loss program would not qualify as a medical expense under paragraph 118.2(2)(o) of the Act unless such fees are paid for a procedure or service of a diagnostic nature and the other conditions in the provision are met.

Gym Membership

As a gym membership would not normally have a diagnostic purpose, such an expense would not qualify as a medical expense under paragraph 118.2(2)(o) of the Act. Further, CRA Guide RC4064, Medical and Disability-Related Information, specifically lists athletic or fitness club fees as ineligible for the METC. This publication is available on the CRA Web site at www.cra-arc.gc.ca.

Exercise Equipment

With regard to exercise equipment, you did not provide any details in your correspondence about the nature and type of equipment; however, we are prepared to offer the following general information.

Pursuant to paragraph 118.2(2)(m) of the Act, a device or equipment may qualify as a medical expense if it is prescribed under section 5700 of the Income Tax Regulations (the "Regulations"), and is for the patient's use as prescribed by a medical practitioner. The medical device must also meet such conditions as are prescribed to its use or as to the reason for its acquisition. If the exercise equipment is not listed under subsection 118.2(2) of the Act or as a device or equipment as prescribed under section 5700 of the Regulations, we are of the view that the cost does not qualify as a medical expense for the purposes of the METC.

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.

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