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 the cost of an MRI procedure would qualify as an eligible medical expense for the purposes of the METC based on the information provided.
Position: Yes.
Reasons: Conditions of paragraph 118.2(2)(o) are met.
XXXXXXXXXX
2011-041567
Chrys Tzortzis, CA
October 27, 2011
Dear XXXXXXXXXX :
Re: MRI procedure
We are writing in reply to your letter sent to the XXXXXXXXXX Tax Centre and forwarded to us. You enquire whether the cost of an MRI procedure would qualify as an eligible medical expense for the purposes of the medical expense tax credit ("METC").
Written confirmation of the tax consequences that apply to a particular fact situation is given by this Directorate only in the context of an advanced income tax ruling request submitted in the manner set out in Information Circular 70-6R5, Advanced Income Tax Rulings, dated May 17, 2002. This Information Circular and other Canada Revenue Agency publications can be accessed on the CRA Web site at www.cra-arc.gc.ca. However, we are prepared to provide the following comments, which may be of assistance.
Medical expenses which are eligible for the METC are limited to those described in subsection 118.2(2) of the Income Tax Act ("Act"). If a particular expenditure is not described as an eligible medical expense in subsection 118.2(2) of the Act, or if the conditions under which the expenditure would qualify are not met, the expenditure does not qualify for purposes of the METC, even though the expenditure may have been incurred for medical reasons.
Paragraph 118.2(2)(o) of the Act allows as an eligible medical expense amounts paid for laboratory, radiological or other diagnostic procedures or services prescribed for a patient by a medical practitioner or dentist. Under this provision, the diagnostic procedures or services (together with the necessary interpretations) must be for maintaining health, preventing disease or assisting in the diagnosis or treatment of any injury, illness or disability. Based on the information you provided, it is our view that the cost of the MRI procedure would qualify as an eligible medical expense under paragraph 118.2(2)(o) of the Act.
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
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