2022-0934441E5 Counselling Therapists in PEI

Principal Issues: Whether Counselling Therapists who practise in PEI are authorized medical practitioners for the purposes of the medical expense tax credit.

Position: Yes.

Reasons: There is specific legislation that governs the practice of Counselling Therapists in PEI.

Author: Underhill, Cynthia
Section: ITA: Section 118.2; Subsection 118.4(2).

XXXXXXXXXX                                                                 2022-093444
                                                                                         C. Underhill

July 28, 2022

Dear XXXXXXXXXX:

Re: Request to add a profession to Canada Revenue Agency’s medical practitioners list

We are writing in response to your correspondence dated March 10, 2022, in which you requested that profession of Counselling Therapist in the province of Prince Edward Island (PEI) be added to the Canada Revenue Agency’s (CRA) list titled “Authorized medical practitioners by province or territory for the purposes of claiming medical expenses” (the List).

Our comments:

This technical interpretation provides general comments about the provisions of the Income Tax Act (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 70-6R12, Advance Income Tax Rulings and Technical Interpretations.

For the purpose of claiming an amount for the medical expense tax credit, paragraph 118.4(2)(a) of the Act provides that where the reference to a medical practitioner is used in respect of a service rendered to an individual, that reference is to a person authorized to practice as such pursuant to the laws of the jurisdiction in which the service is rendered. Therefore, in order to determine whether a particular medical practitioner qualifies as such under the Act, one must look to the relevant provincial or territorial legislation to determine whether the particular practitioner is authorized under the laws of that jurisdiction.

In our view, a person is authorized by the laws of the jurisdiction to act as a medical practitioner if there is specific legislation that enables, permits or empowers the person 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 (e.g., a college or board) with the authority to determine competency, enforce discipline and set basic standards of conduct.

In the province of PEI, a medical practitioner is a practitioner of a health profession that is regulated by the Regulated Health Professions Act, R.S.P.E.I. 1988, Cap. R-10.1 (RHPA). Pursuant to sections 2 and 96 of the RHPA, Council made the Counselling Therapists Regulations which established The College of Counselling Therapy of Prince Edward Island. Based on our review, there is specific legislation that governs and regulates the practice of Counselling therapy in PEI. Therefore under the laws of PEI, a Counselling Therapist meets the requirements of being an authorized medical practitioner for purposes of the Act and will be added to the List.

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

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