14 December 2010 External T.I. 2010-0381401E5 - medical expenses - fertility treatments

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 fertility treatments qualify as medical expenses for purposes of the medical expense tax credit?

Position: Yes as long as the requirements of paragraph 118.2(2)(a) are met.

Reasons: wording of paragraph 118.2(2)(a) of the OTA.

XXXXXXXXXX
									2010-038140
									J. Gibbons, CGA

December 14, 2010

Dear XXXXXXXXXX :

Re: Intrauterine Insemination

We are replying to your letter dated September 22, 2010, concerning whether the costs incurred for intrauterine insemination treatments and fertility medications qualify for the medical expense tax credit ("METC") under subsection 118.2(2) of the Income Tax Act (the "Act").

Payments to Medical Practitioners and Hospitals

Amounts paid by an individual to a "medical practitioner" or to a "public or licensed private hospital" to obtain medical services are qualifying medical expenses for the METC pursuant to paragraph 118.2(2)(a) of the Act. The term "medical practitioner" includes a physician, dentist, pharmacist, nurse or optometrist who is authorized to practice the particular profession according to the laws of the jurisdiction in which the service is rendered, whereas "licensed private hospital" means licensed by the jurisdiction in which the hospital operates. A list of medical practitioners by province is listed on our website at http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns300-350/330/ampp-eng.html.

Laboratory, radiological or other diagnostic procedures

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.

Drugs, medicaments, and other preparations

In general terms, under paragraph 118.2(2)(n) of the Act, qualifying medical expenses include the amount paid for drugs, medicaments or other preparations or substances:

(A) that are manufactured, sold or represented for use in the diagnosis, treatment or prevention of a disease, disorder or abnormal physical state, or its symptoms, or in restoring, correcting or modifying an organic function;

(B) that can lawfully be acquired for use by the patient only if prescribed by a medical practitioner or dentist; and

(C) the purchase of which is recorded by a pharmacist.

It is our view that, based on the information provided, the cost of the intrauterine insemination treatments and fertility medications and treatments appear to qualify as medical expenses for purposes of the METC, provided that the other requirements of paragraph 118.2(2)(a) and (n), respectively, are met.

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