Section 5700
Administrative Policy
S1-F1-C1 - Medical Expense Tax Credit
Reasonable servicing and repair costs related to a device or piece of equipment listed under Reg. 5700 will generally be eligible for an METC.
Paragraph 5700(c.1)
Administrative Policy
24 June 2004 Internal T.I. 2004-0065301I7 F - Frais médicaux - purificateur d'air
Regarding the eligibility of the cost including installation of an air exchanger that also functions as an air purifier and that operates only with a Hepa filter, CRA stated:
[T]he fact that a piece of equipment has the dual function of being an air exchanger as well as an air purifier would not automatically exclude it from paragraph 5700(c.1) … . However, if an air exchanger and an air purifier are two separate devices that could be purchased separately … only the cost of the air purifier could be allowable
Regarding the meaning of "severe chronic respiratory ailment," CRA noted the following statement on the Health Canada website:
There is no universal definition for chronic respiratory diseases. Several diseases fall into this category, the most important being asthma, chronic obstructive pulmonary disease (COPD), lung cancer, bronchitis, cystic fibrosis and respiratory distress syndrome (RDS).
Given that Regs. 5700(c) and (c.1) used "severe," CRA further stated:
[S]easonal allergies, although troublesome, are not severe chronic respiratory ailments.
Paragraph 5700(e)
Administrative Policy
15 November 2012 External T.I. 2012-0456201E5 F - Frais médicaux - calcul et dépenses non admissibles
In finding that expenses related to the purchase of orthopedic shoes, which were not custom-made, did not generate an entitlement to the credit, CRA stated:
[T]he phrase "overcome a disability" should be given its ordinary meaning of allowing a person with a disability or physical disability to overcome that disability or physical disability.
…[T]he cost of orthopedic shoes qualifies solely as medical expenses where they are made to order in accordance with a prescription issued by a physician. As a result, the cost of orthopedic shoes that are not made to order would not qualify as an eligible medical expense even if they were prescribed by a physician.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(o) | emergency call service through telemonitoring ineligible | 152 |
| Tax Topics - Income Tax Act - Section 118.2 - Subsection 118.2(1) | expenses that were incurred, paid for and receipted within same 12-month period cannot be deferred | 193 |
Paragraph 5700(h)
Administrative Policy
12 September 2011 External T.I. 2011-0397731E5 F - Crédit d'impôt pour frais médicaux
Respecting an orthopedic mattress, prescribed by the taxpayer’s doctor, which was adjustable like a hospital bed. CRA stated:
"hospital bed" refers to the type of bed that is generally found in a hospital and is used by patients in that hospital. That term is not intended to include all types of adjustable beds that may have similar characteristics to those of a hospital bed. Thus, at first glance, we are of the view that the purchase of an orthopedic mattress would not qualify for the METC.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) | aquatherapy classes (or pain management courses) do not qualify if non-qualified payee | 100 |
Paragraph 5700(i)
Cases
Canada v. Klywak, 2005 DTC 5712, 2005 FCA 354
The Tax Court Judge had not committed a reviewable error in finding that a hot tub was designed to assist the taxpayer, who suffered from fibromyalgia, in walking. The provision did not use the word "exclusively designed" to assist.
Administrative Policy
17 April 2012 External T.I. 2012-0440931E5 F - Crédit d'impôt pour frais médicaux
In finding that a motorized stationary bicycle prescribed by a doctor to halt the individual’s loss of autonomy and that was designed for people with various medical conditions, including Parkinson's disease, muscular dystrophy and arthritis, to help improve muscle tone, blood circulation and flexibility, as well as to reduce inflammation and muscle spasms, did not qualify, CRA stated:
The devices provided in paragraph 5700(i) are those designed to assist an individual with mobility impairments during walking, including canes, crutches and walkers. In addition … the Theracycle 200 motorized stationary bicycle was not designed "exclusively" to assist with walking.
15 February 1994 Internal T.I. 9401827 - MEDICAL EXPENSES - SNOWMOBILE
A snowmobile is not designed for the purpose of assisting an individual in walking and, therefore, is not allowed under Regulation 5700(i).
Paragraph 5700(j)
Administrative Policy
2 August 2001 Internal T.I. 2001-0076187 F - FRAIS MEDICAUX-IMPLANTS MAMMAIRES
The Directorate indicated that if breast implants are not external prostheses required following a mastectomy, they would not qualify as a medical expense.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(a) | cost of breast implants (generally, not eligible) should be broken out from charges for the procedure (eligible) | 89 |
Paragraph 5700(n)
Administrative Policy
May 2016 Alberta CPA Roundtable, Q.16
Respecting the eligibility of vehicles such as Segways, tricycles and bicycles, CRA stated:
[D]evices that are designed exclusively to enable an individual with a mobility impairment to operate a vehicle (including a Segway), for example, levers, knobs and handles that allow the individual to control steering, speed, braking and signaling, would be an eligible medical expense under paragraph 5700(n)…provided that the requirements under paragraph 118.2(2)(m)… are also satisfied. …
[T]o the extent that devices are designed exclusively to enable a person with a mobility impairment to operate either a bicycle or tricycle, the amount paid for these modifications could also be eligible medical expenses under paragraph 5700(n)….
There are no provisions in the Act that would allow the amount paid to purchase either a bicycle or tricycle, where the intention is to modify after purchase, as an eligible medical expense.
Paragraph 118.2(2)(i) of the Act allows an amount paid for a wheelchair as an eligible medical expense. While this provision would not encompass a standard bicycle or tricycle in the definition of wheelchair, we have previously opined that a wheelchair could include a tricycle wheelchair or geriatric chair with wheels.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(d) | CRA internal nursing home list | 65 |
| Tax Topics - Income Tax Act - Section 118.2 - Subsection 118.2(2) - Paragraph 118.2(2)(i) | geriatric chair with wheels is wheelchair | 62 |