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 Adjustment and the Ontario R & D Superableness
This is in reply to your letter of March 13, 1991 concerning the Ontario Current Cost Adjustment and the Ontario Research and Development Superableness. These programs provide special deductions in computing taxable income for Ontario income tax purposes.
It is your understanding that
. Revenue Canada does not intend to include amounts deducted under these programs in income for federal purposes under paragraph 12(1)(x) of the Income Tax Act (the "Act")
. amounts deducted under these programs do not require the taxpayer to reduce its capital cost of depreciable property under subsection 13(7.1) of the Act;
. amounts deducted under these programs do not reduce the amount of scientific research and experimental development deducted (i.e. the deductions claimed are not government assistance of the purpose of paragraph 37(1)(d) and
- amounts deducted under these programs do not effect the taxpayer's investment tax credit under subsection 127(11.1) of the Act (i.e. they do not reduce the capital cost of property nor do they reduce the amount of a qualified expenditure).
We agree with your understanding of these matters.
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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