Principal Issues: Can an expenditure be taken into consideration for multiple purposes in computing the Ontario Apprenticeship Training Tax Credit, any of the Ontario research and development tax credits and the federal investment tax credit?
Position: It is a question of fact whether an expenditure qualifies for a particular credit. However, where an expenditure qualifies for the ATTC, any of the Ontario research and development credits and the federal ITC, the ATTC credit will reduce the expenditure base for an applicable Ontario research and development tax credit and the federal investment tax credits. However, the ATTC expenditure base should not be reduced by any federal ITC or any Ontario research and development tax credits.
Reasons: Under subsection 127(7) of the ITA, all Ontario tax credits are assistance. For the purposes of claiming the Ontario R&D credits and the ATTC, the relevant section of the XXXXXXXXXX TA deem federal ITCs not to be assistance and they also deem other Ontario credits not to be assistance. In calculating the expenditure base for the ATTC, subsection XXXXXXXXXX 89(19) of the TA specifically exclude from the definition of government assistance any tax credit under section 127 of the ITA as well as specific Ontario R&D credits.