20 July 2000 External T.I. 2000-0028705 - MEDICAL EXPENSE-HEALING TOUCH THERAPY

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: Whether "healing touch therapy" qualifies as a medical expense under the Act.

Position: Likely not.

Reasons: By virtue of paragraph 118.2(2)(a) of the Act, payments made to a therapist (or any other medical worker for that matter), for medical or dental services will qualify for the medical expense tax credit only if the person to whom payments are made is a "medical practitioner," "dentist," "pharmacist," "nurse," or "optometrist." Paragraph 118.4(2)(a)of the Act provides that, for the purposes of section 118.2 of the Act, a reference to a "medical practitioner," "dentist," "pharmacist," "nurse," or "optometrist" means, for a service rendered, a person who is authorized to practice as such according to the laws of the jurisdiction in which the service is rendered. Accordingly, one must look to provincial legislation to determine whether payments to a medical practitioner will qualify for the medical expense tax credit.

XXXXXXXXXX 	J. Gibbons, CGA
		2000-002870
July 20, 2000

Dear XXXXXXXXXX:

We are replying to your facsimile of May 29, 2000, in which you enquired whether "healing touch therapy" qualifies for the medical expense tax credit. In your letter, you explained that healing touch therapy is an energy based therapeutic approach to health and healing using touch to influence the energy system of the body.

As requested, we have considered your question and have provided some comments below. However, we cannot confirm the tax implications of particular transactions unless the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R3. Thus, our comments are of a general nature only.

By virtue of paragraph 118.2(2)(a) of the Income Tax Act (the "Act"), payments made to a therapist for medical or dental services will qualify for the medical expense tax credit only if the person to whom payments are made is a "medical practitioner," "dentist," "pharmacist," "nurse," or "optometrist." Paragraph 118.4(2)(a)of the Act provides that, for the purposes of section 118.2 of the Act, a reference to a "medical practitioner," "dentist," "pharmacist," "nurse," or "optometrist" means, for a service rendered, a person who is authorized to practice as such according to the laws of the jurisdiction in which the service is rendered. Accordingly, one must look to provincial legislation to determine whether payments to a medical practitioner will qualify for the medical expense tax credit.

With respect to the reference to a therapeutist (or therapist) in paragraph 4 of IT-519R2, "Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction", which you noted in your letter, this inclusion is made to recognize that some therapists may qualify as medical practitioners. However, as explained above, in order to determine whether a particular medical practitioner, a healing touch therapist in your case, qualifies as such under the Act, one must look to the relevant provincial legislation to determine whether the particular practitioner is authorized and regulated by statute. In Alberta, for example, occupational therapists are governed by the Occupation Therapy Profession Act, and only therapists authorized under that Act can use the title of occupational therapist.

Since the practice of healing touch therapy does not appear to be authorized under the laws of Alberta, payments made to a healing touch therapist in Alberta would not qualify for the medical expense tax credit. Furthermore, we are unaware of any other provision which would provide tax assistance for the payments in question.

We trust that our comments will be of assistance.

Yours truly,

John Oulton
for Director
Business and Publications Division
Income Tax Rulings Directorate

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