Principal Issues: 1. Whether a step-parent wishing to adopt their common-law partner’s biological child, can claim the adoption expense tax credit in respect of that child. 2) Whether the child’s biological parent can claim adoption expenses incurred by their common-law partner to adopt their biological child.
Position: 1) Yes, if all the requirements in section 118.01 of the Act are met. 2) Likely not.
Reasons: 1) Based on the relevant provincial law, a step-parent is not precluded from adopting their step-child, and the adoption would be recognized as such for the purpose of section 118.01 of the Income Tax Act. 2) It is unlikely that an individual may be entitled to apply under provincial law for an adoption order in respect of their own biological child; therefore, it seems unlikely that an individual’s biological child would meet the definition of "eligible child" of the individual within the meaning of subsection 118.01(1).