Non-prescription medications
The Federal 2008 Budget includes changes to the wording of
the Income Tax Act that will prevent non-prescription drugs from being eligible
for the medical expense tax credit when they are purchased after February 26,
2008.
Prior to February 26, 2008, if the non-prescription drugs
were prescribed by a doctor, and "recorded by a pharmacist" in the
same manner as prescription drugs, they may be considered eligible medical
expenses. An April 2007 Tax Court case, Breger
v. The Queen, quoted the following:
"I cannot accept the suggestion that, in the case of
a medication that is prescribed by a physician but is purchased at a pharmacy
off the shelf, a sales slip or invoice from the pharmacist would be a sufficient
"recording" to meet the statutory requirement. A record in that form
cannot meet the apparent function of the recording requirement. There must be
a record kept by the pharmacist in his or her capacity as pharmacist. That
necessarily excludes substances, however useful or beneficial, that are
purchased off the shelf."
The revision to the Income Tax Act s. 118.2(2)(n) provides
that for drugs to be eligible medical expenses, they must be drugs "that
can lawfully be acquired for use by the patient only if prescribed by a
medical practitioner or dentist". Thus, if the patient is able to
purchase the drugs off the shelf, the cost will not be an eligible medical
expense.
Court cases prior to the Breger case had ruled that
non-prescription drugs were not eligible medical expenses.
See also - links to all information on Taxtips.ca related to persons
with disabilities.
Revised: November 25, 2009
