27 April 2009 External T.I. 2009-0307921E5 - Medical Digital Infrared Thermal Imaging

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 Medical Digital Infrared Thermal Imaging ("DITI") qualifies as a medical expense for purposes of the METC.

Position: Question of fact.

Reasons: Medical DITI may qualify under paragraph 118.2(2)(o) or 118.2(2)(a), depending on the facts.

XXXXXXXXXX 							2009-030792
J. Gibbons, CGA
April 27, 2009

Dear XXXXXXXXXX :

Re: Medical Digital Infrared Thermal Imaging or "Medical DITI"

We are replying to your letter dated January 21, 2009, concerning whether Medical DITI services would qualify for the medical expense tax credit ("METC") under the Income Tax Act (the "Act").

According to the information from the websites referenced in your letter, Medical DITI is a diagnostic process that uses a specialized camera to detect any irregularities that might exist beneath the skin. It is used as an aid for both diagnosis and prognosis, as well as therapy follow-up and rehabilitation monitoring, within clinical fields that include rheumatology, neurology, physiotherapy, sports medicine, oncology pediatrics, and orthopedics.

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. Further, it is a question of fact whether particular expenses qualify for the METC, and this determination requires a review of the receipts and other supporting documentation of the particular claim. Nonetheless, we have provided some general comments on the METC provisions related to diagnostic services and payments to medical practitioners and hospitals, since one of these provisions may apply.

Laboratory, radiological and other diagnostic procedures or services

Under paragraph 118.2(2)(o) of the Income Tax Act (the "Act"), amounts paid by an individual for the cost of laboratory, radiological and other diagnostic procedures or services, together with necessary interpretations, for maintaining health, preventing disease or assisting in the diagnosis or treatment of any injury, illness or disability of the individual, qualify as medical expenses for the METC if they are prescribed by a medical practitioner or dentist.

Payments to Medical Practitioners and Hospitals

Amounts paid by an individual to a "medical practitioner" or to a "public or licensed private hospital" to obtain medical services qualify as medical expenses for the METC pursuant to paragraph 118.2(2)(a) of the Act. The term "medical practitioner" is defined under subsection 118.4(2) and includes a medical doctor, dentist, pharmacist, nurse or optometrist provided that he or she is authorized to perform the particular service according to the laws of the jurisdiction in which the service is rendered, and "licensed private hospital" means licensed by the jurisdiction in which the hospital operates.

It is a question of fact whether the Medical DITI would fall within paragraph 118.2(2)(o) of the Act. However, based on the limited information available, we are of the view that it would likely qualify under that provision as a diagnostic procedure given the broad wording of this provision. It should be noted, however, that the other requirements of paragraph 118.2(2)(o) of the Act would also have to be met. Alternatively, payments for Medical DITI might qualify under paragraph 118.2(2)(a) of the Act, as described above.

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