VLN – Tax Court of Canada finds that work performed for 3rd parties did not qualify as the taxpayer’s own SR&ED
Lyons J found that work that the taxpayer performed for third parties using high tech equipment (the “System”) that it had purchased did not qualify as its SR&ED activities. It was insufficient that doing so provided it with valuable experience. An example was work performed for the University of Ottawa:
…[T]he fact that UO personnel collaborated with the appellant on tasks involving the System and the appellant’s ability to utilize data and findings, does not alter the fact that the research represented the activities of UO researchers on its projects. I find these activities do not amount to the System being used for the appellant’s SRED.
Neal Armstrong. Summary of VLN Advanced Technologies Inc. v. The Queen under s. 37(8)(a).