2020-0857161E5 Medical practitioners - counselling therapists

Principal Issues: Whether counselling therapists in the province of B.C. are authorized medical practitioners for the purposes of the medical expense tax credit.

Position: See response.

Reasons: See response.

Author: Underhill, Cynthia
Section: ITA: 118.4; B.C. Health Professions Act.

XXXXXXXXXX                                                                                                       2020-085716
                                                                                                                               C. Underhill

April 12, 2021

Dear XXXXXXXXXX:

Re: Medical practitioners - counselling therapists

We are replying to your correspondence regarding the medical expense tax credit (METC), which was forwarded to us by the Honourable Diane Lebouthillier, Minister of National Revenue. More specifically, you asked why counselling therapists (CT) in the province of British Columbia (B.C.), are not considered authorized medical practitioners under the Income Tax Act (the Act) and not included on the Canada Revenue Agency’s (CRA) list titled “Authorized medical practitioners by province or territory for the purposes of claiming medical expenses” (the List) for the purposes of the METC.

Our comments:

This technical interpretation provides general comments about the provisions of the Act and related legislation (where referenced). It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R11, Advance Income Tax Rulings and Technical Interpretations.

Paragraph 118.4(2)(a) of the Act provides that for purposes of section 118.2 (METC), a reference to a medical practitioner is a reference to a person authorized to practise as such, pursuant to the laws of the jurisdiction in which the service is rendered. Section 118.4 of the Act recognizes a provincial and territorial governments’ constitutional power to govern health-related matters, including the regulation of health professionals. Therefore, 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.

For more information, see paragraphs 1.20 to 1.23 of Income Tax Folio S1-F1-C1, Medical Expense Tax Credit which can be found on www.Canada.ca.

In the province of B.C., a medical practitioner is a practitioner of a health profession that is regulated by the Health Professions Act (HPA) and listed in the Health Professions Designation and Amalgamation Regulation (B.C. Reg. 270/2008). Based on our review of the HPA and B.C. Reg. 270/2008, there is no reference to specific legislation that governs and regulates the practice of CT. Therefore under the laws of B.C., CT do not meet the requirements of being an authorized medical practitioner for purposes of the Act. Accordingly, the List does not include CT in the province of B.C.

In the province of B.C., the Traditional Chinese Medicine Practitioners and Acupuncturists Regulation (B.C. Reg. 290/2008) regulates and recognizes the profession of traditional Chinese medicine. Therefore under the laws of B.C., a traditional Chinese medicine practitioner meets the requirements of being an authorized medical practitioner for purposes of the Act, which is why the List includes the profession traditional Chinese medicine in the province of B.C.

We trust that these comments will be of assistance to you.

Yours truly,

Lita Krantz, CPA, CA
Manager, Tax Credits and Ministerial Issues
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

UNCLASSIFIED

All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without the prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5.

© Her Majesty the Queen in Right of Canada, 2021

Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistribuer de l'information, sous quelque forme ou par quelque moyen que ce soit, de façon électronique, mécanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.

© Sa Majesté la Reine du Chef du Canada, 2021