Tax Deductibility of Medical Expenses in Canada has Changed
With the last budget, CRA has declared that "cosmetic" medical procedures will no longer qualify as a medical expense on personal Canadian tax returns. Procedures such as hair transplants, botox injections, teeth whitening etc, will no longer be deductible as qualified medical expenses. These procedures are considered "cosmetic" unless they are for reconstructive purposes due to accident or disfigurement of some kind. Prior to the recent budget changes, almost all medical expenses were allowed to be claimed as a medical expense, if the appropriate receipt was issued by the provider of the service.
Canadian businesses that are using Health Spending Accounts will need to review their current programs. Information should be provided to the employees about these changes. Companies that administer Health Spending Accounts will no longer process these medical claims.
Should you need specific information about these changes, contact The Benefit Guys directly or the firm that does the tax preparation for your business.