The Canada Revenue Agency has confirmed that it will allow the costs of medical marijuana purchased from a licensed producer as a medical expense despite the fact that the Income Tax Act does not as yet recognize the enabling legislation.
The news, according to wawa-news.com, came in an August 24 letter from the CRA to the Canadian Medical Cannabis Industry Association, which has been lobbying the CRA to clarify the issue.
The ITA allows deductions for prescription medicines, but not for non-prescription or over-the-counter drugs even when they are recommended by a physician. As it turns out, Health Canada’s Marijuana for Medical Purposes Regulation requires a prescription. The uncertainty had arisen because amendments to the ITA recognizing the MMPR have not yet been introduced.
– Read the entire article at Financial Post.