8 April 2010 External T.I. 2010-0358421E5 - weight loss program

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 for the prevention of disease.

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

XXXXXXXXXX 								2010-035842
									R. Ferrari
April 8, 2010

Dear XXXXXXXXXX :

Re: Weight Loss Program - Medical Expense

This is in response to your letter of February 15, 2010, inquiring about whether the "XXXXXXXXXX " weight loss program qualifies as a medical expense for purposes of the medical expense tax credit.

You have indicated that the fees charged for the weight management program should qualify as medical expenses given that the services are diagnostic, therapeutic, or rehabilitative in nature and that those providing the services are medical practitioners.

Our Comments

Written confirmation of the tax consequences that apply to a particular fact situation is given by this directorate only in the context of an advance ruling request submitted in the manner set out in Information Circular 70-6R5. However, we are prepared to provide the following general comments.

Subsection 118.2(2) of the Income Tax Act (the "Act") defines the expenses that qualify for the medical expense tax credit. Pursuant to paragraph (a) of that provision, an amount is considered to qualify as a medical expense of an individual only if it is paid to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of a medical or dental service.

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 medical practitioner, if licensed to offer such services in British Columbia, would qualify as a medical expense eligible for the medical expense tax credit whether 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 opinion, the weight management program described in your letter would be considered a medical service where the program is offered to an individual for therapeutic or rehabilitative reasons.

We trust our comments will be of some assistance.

Yours truly,

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