Immunovaccine – Federal Court of Appeal finds that government loans made in a non-commercial capacity are "government assistance"

Under a federal program for fostering Maritimes development, the taxpayer received interest-free advances, which were not characterized as forgivable loans - but were repayable only out of a percentage of future revenues.

The advances were "government assistance" which reduced the taxpayer's SR&ED credits.  Although they were not subsidies or forgivable loans, they were "any other form of assistance," which Nadon JA found should be considered to be the case unless "the public authority in question is acting in a business rather than a governance capacity."

Thus, if you have advised that, because forgivable loans are the only type of loans specifically included in the definition of government assistance, a non-forgivable loan is not included, you were wrong.

Neal Armstrong.  Summaries of Immunovaccine Technologies Inc. v. The Queen, 2014 DTC 5119 [at 7309], 2014 FCA 196 under s. 127(9) - government assistance and Statutory Interpretation - ejusdem generis.