Income Tax Act

Marginal note:Definitions

• 118.01 (1) The following definitions apply in this section.

  adoption period

  adoption period, in respect of an eligible child of an individual, means the period that

  • (a) begins at the earlier of the time that an application is made for registration with a provincial ministry responsible for adoption (or with an adoption agency licensed by a provincial government) and the time, if any, that an application related to the adoption is made to a Canadian court; and

  • (b) ends at the later of the time an adoption order is issued by, or recognized by, a government in Canada in respect of that child, and the time that the child first begins to reside permanently with the individual. (période d’adoption)

  eligible adoption expense

  eligible adoption expense, in respect of an eligible child of an individual, means an amount paid for expenses incurred during the adoption period in respect of the adoption of that child, including

  • (a) fees paid to an adoption agency licensed by a provincial government;

  • (b) court costs and legal and administrative expenses related to an adoption order in respect of that child;

  • (c) reasonable and necessary travel and living expenses of that child and the adoptive parents;

  • (d) document translation fees;

  • (e) mandatory fees paid to a foreign institution;

  • (f) mandatory expenses paid in respect of the immigration of that child; and

  • (g) any other reasonable expenses related to the adoption required by a provincial government or an adoption agency licensed by a provincial government. (dépense d’adoption admissible)

  eligible child

  eligible child, of an individual, means a child who has not attained the age of 18 years at the time that an adoption order is issued or recognized by a government in Canada in respect of the adoption of that child by that individual. (enfant admissible)

• Marginal note:Adoption expense tax credit

  (2) For the purpose of computing the tax payable under this Part by an individual for the taxation year that includes the end of the adoption period in respect of an eligible child of the individual, there may be deducted the amount determined by the formula

  A × B

  where

  A

  is the appropriate percentage for the taxation year; and

  B

  is the lesser of

  • (a) $15,000, and

  • (b) the amount determined by the formula

    C - D

    where

    C

    is the total of all eligible adoption expenses in respect of the eligible child, and

    D

    is the total of all amounts each of which is the amount of a reimbursement or any other form of assistance (other than an amount that is included in computing the individual’s income and that is not deductible in computing the individual’s taxable income) that any individual is or was entitled to receive in respect of an amount included in computing the value of C.

• Marginal note:Apportionment of credit

  (3) Where more than one individual is entitled to a deduction under this section for a taxation year in respect of the adoption of an eligible child, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals for that child if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.