CRA has confirmed that prior SR&ED claims for non-statute-barred years can be amended to reflect excluded loans

In response to CAE, effective for loans made after 2019, “excluded loans” were excluded from “government assistance” as defined in s. 127(9) for ITC purposes and from s. 12(1)(x) receipts and governmental assistance under s. 13(7.1). Simplistically, an excluded loan is a government-sourced loan which must be non-forgivable and have reasonable repayment terms, but which otherwise can have non-commercial terms, such as a low interest rate.

CRA representatives confirmed that taxpayers impacted by the change in the s. 127(9) definition of government assistance may submit amended tax returns with their revised SR&ED forms for the years affected even where their SR&ED reporting deadline has passed, provided that the taxation year is not statute-barred.

Neal Armstrong. Summary of EY, “Concessional loans – Claimants may amend prior SR&ED claims for taxation years that are not statute-barred,” Tax Alert 2024 No. 54, 15 November 2024 under s. 127(9) – government assistance.