Medical Practitioners Must Be Regulated Provincially/Territorially For PHSP's
Posted by Mike Frankenberger on
In 2014 the Canada Revenue Agency (CRA) stated (original in French the translation follows)...
that medical expenses incurred in respect of services provided in Quebec by an orthotherapist or an osteopath are not eligible for the purpose of claiming the medical expense tax credit (METC) under ITAs. 118.2(1) because Quebec does not have a specific legislation authorizing orthotherapists or osteopaths to provide medical services or to practice medicine, as required by ITA s. 118.4(2)(a).
Under s. 118.2(2)(a), a medical expense is an amount paid to a medical practitioner, dentist or nurse or a public or licensed private hospital for medical or dental services provided to an individual, the individual’s spouse (or common-law partner) or a dependant. Paragraphs 1.20 to 1.22 of the Income Tax Folio S1-F1-C1: Medical Expense Tax Credit specify that the term “medical practitioner” applies to a broad range of individuals authorized, under ITA s. 118.4(2), to practice their respective profession under the laws of the jurisdiction in which the service is rendered (ITA s. 118.4(2)(a)).
In accordance with the court’s decision in Canada v. Couture, 2008 TCC 171 (aff’d by 2008 FCA 412), it is CRA’s view that an individual is authorized to act as a medical practitioner if there is specific legislation that enables, permits or empowers that individual to perform medical services.
Currently, osteopathy and orthotherapy are not among the professions recognized by l’Office des professions du Quebec (Unofficial translation - Quebec Office of Professions). Thus, Quebec currently does not have legislation authorizing orthotherapists or osteopaths to provide medical services or practice medicine in Quebec.
For a list of medical practitioners authorized by a province or territory for the purpose of claiming the METC, refer to the following website: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncmtx/rtrn/cmpltng/ddctns/lns300-350/330/ampp-eng.html
Note – The technical interpretation includes references to paragraphs 1.21, 1.22, and 1.26 from Income Tax Folio S1-F1-C1: Medical Expense Tax Credit. For reference, we have reproduced these paragraphs in English below.
“1.21 For purposes of the medical expense tax credit as well as the disability tax credit (see Income Tax Folio S1-F1-C2) and the disability supports deduction (see Income Tax Folio S1-F1-C3), subsection 118.4(2) provides that a reference to an audiologist, dentist, medical doctor, medical practitioner, nurse, occupational therapist, optometrist, pharmacist, physiotherapist, psychologist, or speech-language pathologist is a reference to a person who is authorized to practice as such, according to the following laws:
a) for a service rendered to an individual, the laws of the jurisdiction in which the service is rendered;
b) for a certificate issued for an individual, the laws of the jurisdiction in which the individual resides or of a province; and
c) for a prescription issued to an individual for property to be provided to or for the use of the individual, the laws of the jurisdiction in which the individual resides, of a province or of the jurisdiction in which the prescription is filled.
1.22 In accordance with the decision of the Federal Court of Appeal in Canada v Couture, 2008 FCA 412, 2009 DTC 5040, it is the CRA's view that an individual is authorized by the laws of the jurisdiction to act as a medical practitioner if there is specific legislation that enables, permits or empowers that individual to perform medical services. Generally, such specific legislation would provide for the licensing or certification of the practitioner as well as for the establishment of a governing body (for example, a college or board) with the authority to determine competency, enforce discipline and set basic standards of conduct.
1.26 Medical services are diagnostic, therapeutic or rehabilitative services that are performed by a medical practitioner acting within the scope of his or her professional training. The completion of health and disability forms by a medical practitioner is considered to be ancillary to the provision of medical services and the associated costs may also be claimed as an eligible medical expense under paragraph 118.2(2)(a).”
If expenses qualify for the medical expense tax credit (METC) then they also qualify under a PHSP.
PLEASE NOTE that the above blog post, although believed to be correct at the time of posting, may not represent the current position of the CRA. Further this blog is not intended to provide legal, accounting, or other professional advice. If legal, accounting, or other expert assistance is required, the service of a competent professional person should be sought.