Andre Lamy Medicine Professional Corp. - Tax Court of Canada finds that a surgeon carried out his cardiac SR&ED on behalf of his professional corporation

A cardiac surgeon, who carried on his medical practice through a professional corporation, successfully appealed a CRA denial of SR&ED credit claims respecting cardiac research which CRA claimed had been conducted by him in his personal capacity rather than as employee of his corporation. D’Arcy J stated:

He bills the Government of Ontario for such [medical] services in his own name. The Respondent does not challenge the Appellant’s position that any monies received in respect of such services are received by Dr. Lamy for and on behalf of the person providing the service, i.e., his employer, the Appellant. The result is the same with respect to the research activities: Dr. Lamy signed his own name on the contracts, but he provided the services as an employee of the Appellant.

It is helpful that this case did not challenge the proposition that the doctors’ professional corporations earn the professional income notwithstanding the required billing arrangements.

Neal Armstrong. Summary of Andre Lamy Medicine Professional Corporation v. The Queen, 2020 TCC 61 under s. 127(9) – qualified expenditure – (a) and s. 5(1).