26 January 2012 External T.I. 2011-0428191E5 - Medical Expenses Tax Credit

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 amounts paid for: 1) a Polar Care Cube, a motorized cold therapy device, prescribed by a doctor to control and reduce knee pain and swelling and 2) an electrical muscle stimulation (EMS) device used for muscle stimulation and strengthening after a knee injury, qualify as medical expenses for purposes of the medical expenses tax credit (METC).

Position: 1) No. 2) Yes.

Reasons: 1) Cold therapy devices are not provided for under subsection 118.2(2) of the Act or section 5700 of the Regulations. 2) An EMS device appears to be a form of electrotherapy device that meets the conditions described under paragraph 5700(z.2) of the Regulations.

XXXXXXXXXX
					2011-042819

January 26, 2012

Dear XXXXXXXXXX :

Re: Medical Expense Tax Credit for Polar Care Cube and Electrical Muscle Stimulation Device

We are writing in response to your email of November 16, 2011, concerning medical expenses.

You have asked whether the costs of a Polar Care Cube (PCC) and an Electrical Muscle Stimulation (EMS) device, as prescribed by a medical doctor to aid in rehabilitation following an Anterior Cruciate Ligament (ACL) tear, would qualify as a medical expense for purposes of the medical expense tax credit ("METC"). In your email, you indicated that the PCC is a device with a motor and wires that extend to pads that are placed on the injured area to reduce pain and swelling. You also indicated that the EMS device is used to stimulate and strengthen muscles, thus preventing wasting and damage to muscle tissues following an ACL tear.

Our comments

In order to qualify for the METC, the cost of a service or item must be described in the list of eligible medical expenses under subsection 118.2(2) of the Income Tax Act (the "Act"). With respect to a medical device or equipment, the cost may qualify as a medical expense under paragraph 118.2(2)(m) of the Act if it is prescribed under section 5700 of the Income Tax Regulations (the "Regulations"), and is for the patient's use as prescribed by a medical practitioner. The particular device must also meet such conditions as are prescribed to its use or as to the reason for its acquisition.

In the case of the PCC, it is our understanding that it is a brand name for a motorized cold therapy device which, as you described it, is used to reduce pain and swelling. Cold therapy devices are not provided for in any of the paragraphs of subsection 118.2(2) of the Act or in the above-mentioned Regulations. Consequently, the cost of a PCC does not qualify as a medical expense for purposes of the METC.

In the case of the EMS device, it is our understanding that it electrically stimulates muscle fibers to improve their strength. Paragraph 5700(z.2) of the Regulations describes an electrotherapy device designed to be used by an individual with a medical condition or by an individual who has a severe mobility impairment. Based on the information provided, it is our view that the EMS device may qualify as an electrotherapy device under paragraph 5700(z.2) of the Regulations, provided that it is prescribed by a medical practitioner and it meets the other requirements under paragraph 118.2(2)(m) of the Act, as indicated above.

We trust that 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