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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
XXXXXXXXXX 5-942476
Attention: XXXXXXXXXX
December 30, 1994
Dear Sirs:
Re: Investment Tax Credit
This is in reply to your letter dated September 9, 1994 wherein you requested clarification concerning the entitlement of XXXXXXXXXX to claim investment tax credits ("ITC") in respect of qualifying scientific research and experimental development ("SR&ED") expenditures. We apologize for the delay in replying to your request.
As you mentioned in your letter,
XXXXXXXXXX
Subsection 27(1) of the Act provides that Part I applies to a prescribed federal Crown corporation as if any income or loss from (i) a business carried on by the corporation as agent of Her Majesty and (ii) a property of Her Majesty administered by the corporation, were an income or loss, as the case may be, of the corporation therefrom.
It is this Department's opinion that a prescribed Crown corporation is eligible for ITCs with respect to its qualifying SR&ED expenditures. However, such ITCs may be reduced under subsection 127(11.1) of the Act by any government assistance, non-government assistance or contract payment received by the prescribed Crown corporation that can reasonably be considered to be received in respect of such expenditures.
for Acting Director
Manufacturing Industries, Partnerships
and Trusts Division
Rulings Directorate
Policy and Legislation Branch
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