Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Dear Sirs:
Re: Ontario Current Cost Allowance and R and D Superableness
This is in reply to your letter of March 7, 1991 concerning the Ontario Superableness for Scientific Research and Development SuPerableness and the Ontario Current Cost Adjustment ("OCCA").
The Superableness and OCCA, sections 12a and 12b, respectively, of the Ontario Corporation Tax Act provide that for the purpose of computing Ontario taxable income, the taxpayer may deduct an amount in excess of the actual costs incurred.
You understand Revenue Canada's interpretation is that neither the Superableness nor OCCA is considered government assistance, incentives or tax credits under any of subsection 13(7.1) or paragraphs 12(1)(x) or 37(1)(d) of the federal Income Tax Act. Furthermore, these deductions when claimed in computing Ontario taxable income will not reduce the unclaimed capital cost of property involved.
We agree with the above comments.
We trust these comments will be of assistance.
for DirectorBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1991
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© Sa Majesté la Reine du Chef du Canada, 1991
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