22 February 2012 External T.I. 2012-0437351E5 - medical expenses - moist wipes

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 moist wipes qualifies as a medical expense?

Position: No.

Reasons: The reference to "other products" in paragraph 118.2(2)(i.1) of the ITA is restricted to the same class of products such as diapers, disposable briefs, etc. See 2010-0356391.

XXXXXXXXXX
										2012-043735

February 22, 2012

Dear XXXXXXXXXX :

Re: Medical Expense Tax Credit - wipes

This is in response to your letter forwarded to us by the XXXXXXXXXX Taxation Centre on February 21, 2012, inquiring about whether the cost of moist wipes qualifies as medical expenses for purposes of the medical expense tax credit.

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, dated May 17, 2002. Also, where the particular transactions are completed, the inquiry should be addressed to the relevant Tax Services Office. Nonetheless, we have provided some general comments below.

Our Comments

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 49 of Interpretation Bulletin IT-519R2 (Consolidated), Medical Expense and Disability Tax Credits and Attendant Care Expense Deduction, refers to paragraph 118.2(2)(i.1) of the Act which allows as qualified medical expenses the costs for diapers, disposable briefs, catheters, catheter trays, tubing or other products required by the patient by reason of incontinence caused by illness, injury or affliction. Though this wording may appear broad, the explanatory notes to the provision indicate that the provision qualifies all products designed for use by incontinent persons. To the extent that the moist wipes are generic and not designed for use by incontinent persons, it is our view that such expenses are unlikely to qualify as medical expenses under this provision. The reference to "other products" in paragraph 118.2(2)(i.1) of the Act is, in our opinion, restricted to the same class of products as diapers, disposable briefs, catheters, catheter trays, and tubing and would not encompass moist wipes. Accordingly, it is our view that the cost of moist wipes would not be eligible medical expenses.

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