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.
NOVEMBER 1991
QUESTION 16B
Does section 37 permit the "flow through" of deductions for expenditures on scientific research and experimental development to limited partners in a partnership which carries on a research business?
DEPARTMENT'S POSITION
As indicated in Revenue Canada Round Table Q. 38 page 45:22 in the 1989 Conference Report of the Canadian Tax Foundation, the answer is negative:
Expenditures on scientific research and experimental development incurred by a partnership must be claimed by the partnership, as noted in paragraph 96(1)(e.1). One should also note that paragraph 96(1)(g) excludes the partnership's section 37 deductions from the amount of loss allocated to the limited partners.
Canadian Tax FoundationNovember 1991C. BowenSection 31CCM # 912594
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