Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2017-12-11 and last amended on 2017-07-01. Previous Versions

Marginal note:Definitions
  •  (1) The following definitions apply in this section.

    adoption period

    période d’adoption

    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

    dépense d’adoption admissible

    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

    enfant admissible

    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.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2006, c. 4, s. 61;
  • 2013, c. 33, s. 9;
  • 2014, c. 20, s. 6.
Marginal note:Definitions
  •  (1) The following definitions apply in this section.

    eligible electronic payment card

    eligible electronic payment card means an electronic payment card that is

    • (a) used by an individual for at least 32 one-way trips, between the place of origin of the trip and its termination, during an uninterrupted period not exceeding 31 days, and

    • (b) issued by or on behalf of a qualified Canadian transit organization, which organization records and receipts the cost and usage of the electronic payment card and identifies the right, of the individual who is the holder or owner of such a card, to use public commuter transit services of that qualified Canadian transit organization. (carte de paiement électronique admissible)

    eligible public transit pass

    eligible public transit pass means a document

    • (a) issued by or on behalf of a qualified Canadian transit organization; and

    • (b) identifying the right of an individual who is the holder or owner of the document to use public commuter transit services of that qualified Canadian transit organization

      • (i) on an unlimited number of occasions and on any day on which the public commuter transit services are offered during an uninterrupted period of at least 28 days, or

      • (ii) on an unlimited number of occasions during an uninterrupted period of at least five consecutive days, if the combination of that document and one or more other such documents gives the right to the individual to use those public commuter transit services on at least 20 days in a 28-day period. (laissez-passer de transport admissible)

    public commuter transit services

    public commuter transit services means services offered to the general public, ordinarily for a period of at least five days per week, of transporting individuals, from a place in Canada to another place in Canada, by means of bus, ferry, subway, train or tram, and in respect of which it can reasonably be expected that those individuals would return daily to the place of their departure. (services de transport en commun)

    qualified Canadian transit organization

    qualified Canadian transit organization means a person authorised, under a law of Canada or a province, to carry on in Canada a business that is the provision of public commuter transit services, which is carried on through a permanent establishment (as defined by regulation) in Canada. (organisme de transport canadien admissible)

    qualifying relation

    qualifying relation of an individual for a taxation year means a person who is

    • (a) the individual’s spouse or common-law partner at any time in the taxation year; or

    • (b) a child of the individual who has not, during the taxation year, attained the age of 19 years. (proche admissible)

  • Marginal note:Transit pass tax credit

    (2) For the purpose of computing the tax payable under this Part by an individual for a taxation year, 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 amount determined by the formula

    C - D

    where

    C
    is the total of all amounts each of which is the portion of the cost of an eligible public transit pass or of an eligible electronic payment card, attributable to the use of public commuter transit services in the taxation year and before July 2017 by the individual or by a person who is in the taxation year a qualifying relation of the individual, and
    D
    is the total of all amounts each of which is the amount of a reimbursement, allowance or any other form of assist­ance that any person is or was entitled to receive in respect of an amount included in computing the value of C (other than an amount that is included in computing the income for any taxation year of that person and that is not deductible in computing the taxable income of that person).
  • Marginal note:Apportionment of credit

    (3) If more than one individual is entitled to a deduction under this section for a taxation year in respect of an eligible public transit pass or of an eligible electronic payment card, 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 eligible public transit pass or eligible electronic payment card 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.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2007, c. 2, s. 21, c. 35, s. 37;
  • 2013, c. 34, s. 247;
  • 2017, c. 20, s. 13.
 
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