2 December 2003 External T.I. 2003-0047035 - MEDICAL EXPENSES

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 CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues: Does the cost of a health-related service offered by a licensed pharmacist qualify as a medical expense eligible for the medical expense tax credit?

Position: Yes, provided the service in question is a medical service.

Reasons: For the purpose of paragraph 118.2(2)(a) of the Act, a licensed pharmacist qualifies as a medical practitioner. Accordingly, an amount paid by an individual to a pharmacist in respect of a medical service provided to that individual qualifies as a medical expense.

2003-004703
XXXXXXXXXX Daryl Boychuk
(613) 957-2059
December 2, 2003

Dear XXXXXXXXXX:

Re: Medical Expense Tax Credit - Services Performed by Pharmacists

We are writing in reply to your letter dated November 25, 2003 concerning the medical expense tax credit. Specifically, you asked us if the cost of health-related services offered by a pharmacist would be eligible for the medical expense tax credit where the services provided are not directly related to the dispensing of prescription drugs. As examples, you referred to services such as structured medication reviews, disease management clinics/consultations and blood pressure monitoring.

Our opinion herein is based on the understanding that a reference to a "pharmacist" refers to a person who is licensed to practice as a pharmacist under the laws of a province or territory.

Our Comments

Written confirmation of the tax consequences that apply to a particular fact situation is given by this directorate only in the context of an advance ruling request submitted in the manner set out in Information Circular 70-6R5. However, we are prepared to provide the following general comments.

Subsection 118.2(2) of the Income Tax Act (Canada) (the "Act") defines the expenses that qualify for the medical expense tax credit. Pursuant to paragraph (a) of that provision, an amount is considered to qualify as a medical expense of an individual only if it is paid to a medical practitioner, dentist or nurse or a public or licensed private hospital in respect of a medical or dental service.

In general terms, a "medical practitioner" is a person who is authorized by a province or other jurisdiction to act as a medical practitioner. In our view, a person is authorized by a province or other jurisdiction to act as a medical practitioner if there is specific legislation that enables, permits or empowers the person to practice as such. In this respect, we have reviewed the legislation in each of the jurisdictions in Canada and we are satisfied that, for the purpose of paragraph 118.2(2)(a) of the Act, a pharmacist qualifies as a medical practitioner.

Accordingly, an amount paid by an individual to a pharmacist in respect of a "medical service" would qualify as a medical expense eligible for the medical expense tax credit. A medical service is a service relating to the diagnosis, treatment or prevention of disease performed by a medical practitioner acting within the scope of his or her professional training.

In our opinion, the services described above and in the summary attached to your letter qualify as medical services and, therefore, we would consider an amount paid by an individual to a pharmacist in respect of such services to be a medical expense eligible for the medical expense tax credit.

This letter supercedes the opinion issued by the Income Tax Rulings Directorate on December 13, 2001 (Document No. 2001-0099245).

Yours truly,

Daryl Boychuk, LL.B
for Director
Business and Partnerships Division
Income Tax Rulings Directorate

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