Could the taxpayer claim the unused portion of the disability tax credit for her daughter who was now over 18 years of age, given that the daughter had been placed in a specialized centre since she was two and a half years old and the taxpayer was no longer having to pay for her daughter as she was receiving social assistance benefits? CRA found that the taxpayer was not entitled to the credit for disabled dependants over 18 years of age under s. 118(1)(d) because the taxpayer was no longer regularly providing for her daughter’s basic needs. Accordingly, any unused portion of the tax credit of the daughter for impairment could not be transferred to the taxpayer pursuant to s. 118.3(2) , given that one of the conditions for entitlement to the transfer of the unused portion was that the parent be able to claim the disability tax credit. CRA stated that:
Generally, a person is dependent on an individual if the individual provides for the individual's basic needs or necessities on a regular and consistent basis … [so that the taxpayer] cannot claim the wholly dependent person tax credit for dependants with physical or mental disabilities.