6 July 2010 Ministerial Correspondence 2010-0370651M4 - medical devices coagulation meter

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 coagulation meters qualify as medical devices for purposes of the medical expense tax credit?

Position: No.

Reasons: No provision in the ITA or Regulation 5700 for coagulation meters.

July 6, 2010

XXXXXXXXXX

Dear XXXXXXXXXX :

Thank you for your correspondence received on June 4, 2010, in which you request adding blood coagulation meters to the list of eligible medical devices for the medical expenses amount.

The Income Tax Act lists expenditures that qualify for the medical expenses amount. A payment for a medical device or equipment may be eligible for the credit if certain conditions are met. Generally, to qualify, the device or equipment must be:

• prescribed by a medical practitioner;
• included in the list of qualifying medical devices or equipment in section 5700 of the Income Tax Regulations; and
• used for the condition or the reason for which it was prescribed.

A medical practitioner is generally a person who is authorized to practice under the laws of the jurisdiction where the services are provided. The blood coagulation meter is not listed in section 5700 of the Regulations or in any provision in subsection 118.2(2) of the Act. Therefore, it does not qualify for the medical expenses amount under the current legislation.

You ask that the Regulations be amended to add the meter to the list of qualifying medical devices. The Canada Revenue Agency is responsible for administering and enforcing the Act as passed by Parliament. Any proposal to change tax policy or legislation would have to be considered by the Department of Finance Canada and approved by Parliament. I am therefore forwarding a copy of our correspondence to the Honourable James M. Flaherty, Minister of Finance, for his consideration.

I trust that the information I have provided and the referral are helpful.

Yours sincerely,

Keith Ashfield

c.c.: The Honourable James M. Flaherty, P.C. M.P.
Minister of Finance
House of Commons
Ottawa ON K1A 0A6

G. Moore
(613) 957-2141
2010-037065