INCOME TAX |
Income Calculation |
Canada v. Ray
A-593-02
2004 FCA 1, Sharlow J.A.
5/1/04
9 pp.
Medical expense tax credit--Respondent suffering from myalgic encephalomyelitis, chronic fatigue and immune dysfunction syndrome, multiple chemical sensitivity, and fibromyalgia--To treat those conditions, her physicians prescribed vitamins, herbs, organic and natural foods, and bottled water--In 1999, respondent spent $6,555 for those substances, and claimed medical expense tax credit for those expenditures--Claim dismissed, but she appealed successfully to Tax Court--Crown now seeking judicial review--Claim for medical expense tax credit based on Income Tax Act, s. 118.2(2)(n)--Meaning of phrase "as recorded by pharmacist" --Tax Court Judge erred in concluding words "as recorded by pharmacist" in s. 118.2(2)(n) could be ignored--Recording requirement in s. 118.2(2)(n) intended to ensure tax relief not available for cost of medications purchased off shelf--Laws throughout Canada governing practice of pharmacy-- Generally, they prohibit pharmacist from dispensing certain medications without medical prescription, and they describe records pharmacist required to keep for medications dispensed by prescription--Where medication prescribed by physician but purchased at pharmacy off shelf, sales slip or invoice from pharmacist not sufficient "recording" to meet statutory requirement--Must be record kept by pharmacist in capacity as pharmacist--Necessarily excludes substances purchased off shelf--Patient purchasing prescription medications from physician may not be entitled to medical expense tax credit because no recording by pharmacist--Tax Court Judge interpreted s. 118.2(2)(n) as though application of closing words, "as recorded by pharmacist", may vary depending on severity of patient's condition, so if condition sufficiently severe, words may disappear altogether--In effect, Tax Court Judge added extra-statutory condition to s. 118.2(2)(n)-- Therefore, Crown's judicial review allowed--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 118.2(n).