Ontario Massage Therapists May Learn About HST Consequences From BC

The Winnipeg Press Press (an unlikely resource for HST information) reports in an article entitled "B.C. massage therapists will have to charge HST on chronic disease patients" that massage therapists must charge HST on massage services to chronic pain patients, even if they have a doctor's note and the services are medically necessary. There are many human conditions that require massage therapy as a medical treatment.

The article states:

The NDP says people in B.C. who suffer from chronic diseases and need massage therapy are the latest to be hit by the harmonized sales tax.

Health critic Adrian Dix says massage therapists who treat people with diseases such as multiple sclerosis will have to charge their patients the HST, pushing treatment costs toward $100 an hour.

He says the government is imposing the tax despite warnings from patients and health care professionals that it hurt those needing the treatment for chronic illness.

However, Finance Minister Colin Hansen says a health profession can't be exempted from federal tax unless it's regulated in at least five provinces, and massage therapists are only regulated in three — Ontario, Newfoundland and British Columbia.

He says the government is providing a HST credit for low and modest income people as well as increasing the basic personal amount tax credit.

Meanwhile, organizers of an anti-HST petition say they've now signed up 15 per cent of registered voters in all but five of B.C.'s 85 ridings, five per cent more than the minimum needed for the petition to succeed in getting either a vote in the legislature or a referendum.

This gap in the tax system will cost insurance companies and individuals.  If you have a doctor's note, you may be reimbursed under some health insurance policies for the massage services (but, then again, doctor's may charge you for a note to provide to your insurance company (also subject to HST).  If you do not have insurance coverage for the massage services, then it is a taxable health care costs to individuals (on top of employer health taxes, fair share health levies, insurance premiums, taxes on insurance premiums, etc.).

The good news is that if the massage therapy is provided by a registered nurse, a registered nursing assistant, a licensed or registered practical nurse, it will be exempt from HST.

It is also important to distinguish between massage (which is taxable) and chiropractic services (exempt) and physiotherapy  services (exempt). So, it may be a characterization problem for some chronic pain patients.

This Blog/Web Site is made available by Cyndee Todgham Cherniak and Cyndee Todgham Cherniak Professional Corporation for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and the Blog/Web Site publisher. The Blog/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your province.

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