Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: How is the 2013 amendment to the definition of the start times for the adoption period applied? Is the definition applicable to an adoption period that starts before 2013; or only to an adoption period that begins in 2013 or later?
Position: The adoption period as defined by the 2013 amendment can start before 2013.
Reasons: Legislation and intent.
XXXXXXXXXX
2013-051579
April 30, 2014
Dear XXXXXXXXXX:
Re: Adoption Expense Tax Credit
This is in response to your correspondence dated December 18, 2013, regarding the definition of "adoption period" in subsection 118.01(1) of the Income Tax Act which was amended in 2013. Specifically, you have asked whether the amended definition of adoption period applies to Adoption Expense Tax Credit (AETC) claims made in 2013 and subsequent taxation years when the adoption period begins before 2013, or if the amendment is only applicable to adoption periods that begin after 2012.
Our Comments
This technical interpretation provides general comments about the provisions of the Act and related legislation (where referenced). It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R5, Advance Income Tax Rulings.
The change to the definition of the adoption period for the AETC modifies one of the times at which an adoption period can begin. The definition was amended to change one of the beginning times from when "the eligible child's adoption file is opened" to when "an application is made for registration" with a provincial ministry responsible for adoption (or with an adoption agency licensed by a provincial government). This change has the effect of potentially including more adoption-related expenses and is effective for 2013 and subsequent taxation years.
Because the AETC in subsection 118.01(2) of the Act is based on eligible adoption expenses incurred in the eligible adoption period, the definition of adoption period at the time of the calculation of the AETC is relevant. Therefore, AETC claims made in 2013 and subsequent taxation years rely on the amended definition of adoption period which could include an adoption period that begins before 2013.
We trust these comments will be of assistance.
Yours truly,
Pamela Burnley, CPA, CA
Tax Credits and Ministerial Issues
Business and Employment Division
Income Tax Rulings Directorate
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2014
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2014
Email this Content