Canada Revenue Agency Confirms Regulated Medical Cannabis as Allowable Medical Expense

The Canadian Medical Cannabis Industry Association (CMCIA) announced on 1 September that it has received a letter from the Canada Revenue Agency (CRA), officially confirming that medical cannabis purchased by an individual from a licensed producer under Health Canada’s Marihuana for Medical Purposes Regulations (MMPR) would be an allowable medical expense under the Income Tax Act.

The CRA letter, dated August 24, 2015, confirms that registered patients under the MMPR who receive a prescription (authorization) for medical cannabis from a physician, and purchase cannabis from a licensed producer, may claim the cost of their cannabis as an allowable medical expense on their income tax. Specifically, the letter notes that while amendments to the Income Tax Act have yet to be introduced to recognize the MMPR, “[T]he CRA will not disallow eligible medical expenses claimed for the purchase of medical marihuana allowable under these new regulations”.

Allowable medical expenses under the...

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