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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
The issue is whether an amount paid for hair transplant or other similar type of cosmetic surgery is a qualifying expense for the purposes of paragraph 118.2(2)(a) of the Income Tax Act (the Act). The amount is paid to a medical practitioner as defined in subsection 118.4(2) of the Act.
Position TAKEN:
The amount can generally be accepted as being a qualifying expense.
Reasons FOR POSITION TAKEN:
There is a presumption that the surgery is beneficial to the patient's health. The payment can generally accepted as being a qualifying expense as a consequence of the nature of the presumption.
October 23, 1995
Assessment of Returns Directorate HEADQUARTERS
W. S. Hume M. Eisner
Director (613) 957-8953
952319
Medical Expense Tax Credit
This is in reply to the memorandum of August 30, 1995 submitted to us by Mr. R. Furlong of the Validation Section on the above-noted subject. We have been asked to comment on whether an amount paid for hair transplant or other similar type of cosmetic surgery is a qualifying medical expense under paragraph 118.2(2)(a) of the Income Tax Act (the Act). The amount is paid to a medical practitioner as defined under paragraph 118.4(2) of the Act.
In relation to the payment described above, the memorandum submitted to us indicates that the payment represents a qualifying medical expense provided that a medical condition is involved. Such a condition can include the mental health of the patient.
We are in agreement with the above comments. However, we are also adding that, in our view, when an amount is paid to a medical practitioner in respect of such surgery, there is a presumption that the surgery is beneficial to the patients's health. As a consequence of the nature of this presumption, it is our view that it would follow that the amount paid to the medical practitioner can generally be accepted as being a medical expense that qualifies under paragraph 118.2(2)(a) of the Act. We also note that these comments are consistent with the views set out in the copy of the letter you attached to your memorandum from XXXXXXXXXX.
For your general information, we also attach a copy of a letter which we recently issued on the subject of electrolysis.
Should you require further technical assistance, we would be pleased to provide our views.
B.W. Dath
Director
Business and General Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1995
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1995