Canada Revenue Agency confirms regulated medical cannabis as an allowable medical expense - Enhances accessibility and affordability of medical cannabis for patients

TORONTO, Sept. 1, 2015 /CNW Telbec/ - The Canadian Medical Cannabis Industry Association (CMCIA) is pleased to announce 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 Income Tax Act currently include prescription medicines lawfully acquired for use by an individual, when prescribed by a medical practitioner. Non-prescription or over-the-counter drugs cannot be claimed, even when recommended by a physician.

"This is an important step in acknowledging the legitimacy of the way patients use medical cannabis, to help manage the symptoms of a range of health conditions," said Neil Belot, Executive Director of the CMCIA. "We have been working with the CRA and the Department of Finance for several months to clarify this issue, and we're extremely pleased that cannabis regulated by Health Canada has been recognized as an allowable tax expense. It's very good news, and will help make the use of cannabis as medicine more accessible and affordable for patients."

About the CMCIA

The Canadian Medical Cannabis Industry Association (CMCIA) is Canada's leading member-driven association for Licensed Producers (LPs) of medical cannabis. The Association represent the majority of producers currently licensed under Health Canada's Marijuana for Medical Purposes Regulations (MMPR).

CMCIA's mission is to promote national standards and best practices by supporting the development, growth and integrity of the medical cannabis industry. The Association acts as the national voice for Canada's LPs, and serves as a credible and trusted resource on issues related to medical cannabis industry.

The Association shares a philosophy of patient-centric care and improved public health, and is committed to product safety and quality, secure and reliable access for registered patients, and the promotion of the safe and effective use of cannabis for medical purposes. www.cmcia.ca

SOURCE Canadian Medical Cannabis Industry Association

Cam Battley, Chair, Communications Committee, CMCIA, [email protected], 905.864.5525