Westsource – Federal Court of Appeal finds that a materially incomplete T661 resulted in a denied SR&ED claim

Boxes 240, 242 and 244 of the prescribed SR&ED form (T661) filed by the taxpayer were left blank. V Miller found that this scuppered the taxpayer’s SR&ED claim as those boxes addressed the key legislative requirements of technological advancement and uncertainty, and systematic investigation. In affirming this finding, Woods JA stated that while there is a “legislative objective of encouraging research and development activities … another objective is to facilitate tax administration by denying the tax incentives if the filing requirement has not been satisfied.”

Neal Armstrong. Summary of Westsource Group Holdings Inc. v. Canada, 2018 FCA 57 under s. 37(11).