Income Tax Severed Letters - 2023-03-15

Ruling

2019 Ruling 2017-0728381R3 F - Butterfly Transaction

Unedited CRA Tags
55(3)(b), 55(2)

Principales Questions: Whether subsection 55(3)(b) applies.

Position Adoptée: Yes.

Raisons: See statement of principal issues.

Technical Interpretation - Internal

26 October 2022 Internal T.I. 2021-0915091I7 - SR&ED Prescribed Expenditures

Unedited CRA Tags
37(1); 127(5); 127(9) definitions of "qualified expenditures" and "investment tax credit"; 248(1) definition of “property” of the Income Tax Act; Subparagraph 2902(b)(ii) of the Regulation
Summary Under
Tax Topics - Income Tax Regulations - Regulation 2902 - Paragraph 2902(b) - Subparagraph 2902(b)(ii)
a used machine acquisition on current account was ineligible for SR&ED credit

Principal Issues: 1. Does subparagraph 2902(b)(ii) of the Regulations apply to materials for SR&ED (i.e., current expenditures) in respect of the acquisition of used property?

Position: 1. Yes.

Reasons: 1. Plain reading of the legislation.