20 January 2011 External T.I. 2010-0383021E5 - Apple iPad as a medical device

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 an Apple iPad that is acquired to assist certain special needs children, including autistic children, to communicate more effectively would qualify for the medical expense tax credit.

Position: No.

Reasons: It is not a medical expense that is described in subsection 118.2(2) of the Act.

XXXXXXXXXX
								2010-038302
								J. Gibbons, CGA

January 20, 2011

Dear XXXXXXXXXX ,

This is in reply to your letter dated September 10, 2010, concerning whether the cost of an Apple iPad to assist certain special needs children to communicate more effectively would qualify as a medical expense for purposes of the medical expense tax credit ("METC") under section 118.2 of the Income Tax Act (the "Act").

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 an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. Also, where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office. Nonetheless, we are prepared to offer the following general comments.

Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of the Act. If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2) of the Act, or if the conditions under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the METC, even though the expenditure may have been incurred for medical reasons.

Under paragraph 118.2(2)(m) of the Act, a payment in respect of a device or equipment may qualify as a medical expense if certain conditions are met. Generally, to qualify, the device or equipment must be prescribed by a medical practitioner, must be included in the list of qualifying devices or equipment described in section 5700 of the Income Tax Regulations (the "Regulations") and must meet such conditions as are prescribed by the Regulations as to its use or the reason for its acquisition. A Bliss symbol board or other similar device designed to be used to help an individual who has a speech impairment to communicate by selecting symbols or spelling out words qualifies under paragraph 5700(x) of the Regulations. However, it is our view that an Apple iPad for use by special needs patients to communicate more effectively would not qualify under this provision or any other provision in the Act or Regulations.

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