Section 127

Table of Contents

Subsection 127(1) - Logging tax deduction

Qualified Small Business Property

Cases

Kowdrysh v. The Queen, 2001 DTC 5221, 2001 FCA 34

Létourneau J.A. found that in the context of the temporary program for qualified small-business property, the proper interpretation of the word...

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Words and Phrases
acquire

Subsection 127(3) - Contributions to registered parties and candidates

Cases

Doyle v. The Queen, 89 DTC 5030, [1989] 1 CTC 113 (FCTD)

Receipts in respect of 1976 contributions by the taxpayer were filed in error with the 1976 return of a corporation of which she was a director....

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Stasiuk v. The Queen, [1986] 2 CTC 346 (FCTD)

Amounts paid by the taxpayer for the publicizing of her political ideas and political claims, where no amount was paid to a registered party, did...

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Administrative Policy

28 October 1991 Memorandum (Tax Window, No. 12, p. 24, ¶1556)

No tax credit is available for a contribution made to a candidate in a civic or municipal election.

Subsection 127(4.1) - Monetary contributions — form and content

Administrative Policy

13 October 1994 Internal T.I. 9420847 - CONTRIBUTIONS TO POLITICAL PARTIES BY WAY OF CREDIT CARD

Credit cards may be used to make contributions to registered political parties or candidates.

Subsection 127(5) - Investment tax credit

Cases

AEL Microtel Ltd. v. The Queen, 84 DTC 6374, [1984] CTC 387 (FCTD), rev'd 86 DTC 6348, [1986] 2CTC 108 (FCA)

"[A] taxpayer may claim the investment tax credit in any of the five succeeding years to the year in which the expenditure was made but at the...

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Administrative Policy

93 C.R. - Q. 5

RC has not adopted any practice of issuing reassessments to allow taxpayers SR&ED incentives that are beyond the normal three or four-year...

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86 C.R. - Q. 73

RC applies tax credits in the manner most beneficial to the taxpayer.

Articles

Hiltz, "Income Earned or Realized: Some Reflections", 1991 Conference Report, c. 15.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 55 - Subsection 55(2) 0

Subsection 127(8) - Investment tax credit of partnership

Cases

Canadian Solifuels Inc. v. The Queen, 2001 DTC 5565, 2001 FCA 280

A Canadian-controlled private corporation that was a member of a partnership was not entitled to the enhanced credit under s. 127(10.1). Malone...

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Allcolour Paint Ltd. v. The Queen, 97 DTC 5266, [1997] 2 CTC 356 (FCA)

In light of the failure of s. 127(8) to refer to the right established under paragraph (e) of the definition of investment tax credit to claim...

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Articles

Peter Lee, "Flow-Through of Partnership R & D Tax Credits to Partners", Business Vehicles, Vol. III, No. 4, 1997, p. 150.

Subsection 127(8.1) - Investment tax credit of limited partner

Administrative Policy

86 C.R. Q. 2

The ITC restriction applies to farming partnerships.

Subsection 127(8.3)

Administrative Policy

6 July 2011 Internal T.I. 2010-0357461I7 F - CII RS&DE

A partnership, which has made $1,000,000 in eligible SR & ED expenditures, consists of two associated partners: the first is a partner other than...

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Subsection 127(9) - Idem [Definitions]

Apprenticeship Expenditure

Administrative Policy

19 August 2008 Internal T.I. 2008-0280681I7 F - Création d'emplois d'apprentis

CRA confirmed that a taxpayer can receive the maximum amount of the apprenticeship job creation tax credit notwithstanding a taxation year that is...

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Certified Property

Cases

Fibre Co. Pulp Inc. v. The Queen, 94 DTC 6325, [1994] 2 CTC 114, [1994] 2 CTC 2131, 94 DTC 1543, [1994] 2 CTC 2153, 94 DTC 1809 (FCTD)

A bleached chemi-thermo-mechanical pulp mill constituted a "facility" for purposes of paragraph (b) of the definition of certified property, with...

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See Also

Sudbrack v. The Queen, 2000 DTC 2521, Docket: 98-2386-IT-G (TCC)

Kitchen equipment that was used in a guest house for preparing meals for guests qualified as equipment used for the purpose of processing goods...

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Administrative Policy

22 March 1990 T.I. (August 1990 Access Letter, ¶1382)

A pulp mill does not qualify as a "facility" for purposes of the RDIA.

Child Care Space Amount

Administrative Policy

16 May 2014 External T.I. 2014-0526161E5 F - CII des places en garderie

A corporation (ABC) incurs all the costs of installing child care spaces in a facility owned by it and for the use of its employees and the...

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Contract Payment

Paragraph (a)

See Also

CS Communication v. Agence du revenu du Québec, 2022 QCCQ 1175

The taxpayer (“CS Canada”), which carried on a business of developing software for use in the aeronautics industry, entered into a “long...

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Comdev Ltd. v. The Queen, 99 DTC 775, [1999] 2 CTC 2566 (TCC)

The taxpayer was selected by Spar Aerospace Ltd. to perform subcontract work in relation to a contract Spar had been awarded to design and...

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Paragraph (b)

See Also

MDA Systems Ltd. v. Agence du revenu du Québec, 2020 QCCQ 4190

The taxpayer (“MDA”), which carried on computer systems engineering, entered into several contracts with the Canadian Space Agency...

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Eligible Apprentice

Administrative Policy

7 June 2016 External T.I. 2014-0532451E5 F - Crédit pour la création d’emplois pour apprentis

When does the period of the "first twenty-four months of the individual’s apprenticeship contract" under the definition of "eligible apprentice"...

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26 September 2008 Internal T.I. 2008-0281111I7 F - Salaires admissibles - CICEA

An apprentice carpenter-joiner works both in the new residential construction sector and in the home renovation sector. The wages that the...

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1 May 2008 External T.I. 2007-0250141E5 F - Crédit pour la création d'emplois d'apprentis

In the context of the Quebec construction industry, how should the start of the apprenticeship contract be determined for the purposes of the...

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30 April 2008 External T.I. 2007-0257041E5 F - Crédit pour la création d'emplois d'apprentis

After noting that under the then-current definition, the term "eligible apprentice" referred to an individual who is employed in a prescribed...

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Words and Phrases
year
Locations of other summaries Wordcount
Tax Topics - Statutory Interpretation - Interpretation Act - Section 37 - Subsection 37(1) “year” refers to any 12-month period 133

9 April 2008 Internal T.I. 2008-0268881I7 F - Crédit d'impôt pour apprentis

Before finding that where an apprentice works for two or more unrelated employers in the Quebec construction industry in Quebec in a taxation...

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18 February 2008 External T.I. 2007-0228491E5 F - Heures travaillées hors décret de la CCQ

Are wages paid for hours worked outside the scope of the CCQ (Commission de la construction du Québec) decree eligible when determining the...

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22 May 2007 External T.I. 2007-0228611E5 F - Crédit pour la création d'emplois pour apprentis

In the construction industry, a year of apprenticeship means 2,000 hours of work which might not necessarily be reached within a 12-month period. ...

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Words and Phrases
year contract

First Term Shared-Use Equipment

Administrative Policy

9 February 2010 External T.I. 2009-0316561E5 F - Biens en immobilisations-RS&DE

In a general response to a question as to qualification as first term shared-use-equipment and second term shared-use-equipment (collectively,...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 2900 - Subsection 2900(11) requirement during establishment phase to be used primarily during useful life for SR&ED 63

Flow-Through Mining Expenditure

Articles

Emmanuel Sala, "Flow-Through Share Financing: Recent Developments, Traps and Tips", 2015 CTF Annual Conference paper

Equivalent provincial credits (pp. 10:6-7)

An individual who is resident in another province of Canada can generally obtain a provincial tax...

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Gaspé Peninsula

Administrative Policy

20 April 2005 External T.I. 2004-0101461E5 F - Péninsule de Gaspé"-"comté"

Does "Kamouraska County" in the definition of "Gaspé Peninsula" refer to the electoral district to which Kamouraska belongs? CRA indicated such...

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Words and Phrases
county

Government Assistance

Cases

Immunovaccine Technologies Inc. v. Canada, 2014 DTC 5119 [at 7309], 2014 FCA 196, aff'g 2013 DTC 1101 [at 531], 2013 TCC 103

The taxpayer received $3,786,474 over four years for a vaccine development project under a federal regional assistance program, administered by...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) government loans made in a non-commercial capacity are "government assistance" 100
Tax Topics - Statutory Interpretation - Ejusdem Generis definition ending in "any other form of assistance" precluded a narrow reading 82

The Queen v. CCLC Technologies Inc., 96 DTC 6527, [1996] 3 CTC 246 (FCA)

An agreement between a predecessor of the taxpayer ("Contar") and the Province of Alberta in which the Province contributed towards the cost of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) governmnt receipt in non-commercial arrangement was assistance etc. 149

See Also

CAE Inc. v. The Queen, 2021 CCI 57

The taxpayer (“CAE”), which was engaged in manufacturing flight simulator systems, incurred over $700 million in research and development...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(11) - Investment Contract advance labelled by government as a "contribution" but unconditionally repayable was a loan 97
Tax Topics - Income Tax Act - Section 37 - Subsection 37(1) - Paragraph 37(1)(d) loan with non-commercial terms was government assistance when advanced 283

Agence du revenu du Québec v. PCI Géomatics Entreprises Inc., 2020 QCCA 1342

The taxpayer (“PCI”), which was a company involved in R&D activities for the development of software for satellites, received a...

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PCI Géomatics Entreprises Inc. v. Agence du revenu du Québec, 2019 QCCQ 2688, rev'd 2020 QCCA 1342

In order to encourage the SR&ED activities of the plaintiff (“PCI”) in the field of geomatic solutions, the Federal Minister of Industry made...

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Words and Phrases
forgivable loan

Administrative Policy

21 June 2013 Internal T.I. 2012-0459731I7 - Government Assistance

Citing Immunovaccine as well as several of its own rulings documents, CRA stated that contributions distributed under Canada's Strategic Aerospace...

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28 June 2010 External T.I. 2009-0350241E5 F - Crédit d'impôt pour investissement du Québec

CRA noted:

Since the Quebec investment tax credit is government assistance ... relating to the acquisition of a property ... it should reduce the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(vi) Quebec investment tax credit is deducted under s. 13(7.1) rather than included under s. 12(1)(x) 90
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1) - Paragraph 13(7.1)(f) Quebec investment tax credit reduces capital cost at end of year for which it is claimed, excepting any carryforward portion 213

Investment Tax Credit

See Also

Easy Way Cattle Oilers Ltd. v. The Queen, 2015 TCC 211, aff'd 2016 FCA 301

D'Arcy J found that Form T2SCH31 ("Schedule 31") was a prescribed form, as it was "authorized by the Minister" as contemplated under s. 244(16)....

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Papiers Cascades Cabano Inc. c. La Reine, 2006 DTC 2305, 2005 TCC 396

After the 1995 taxation year the taxpayer became statute-barred, the Minister determined that the taxpayer had claimed an excessive investment tax...

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Datacalc Research Corp. v. The Queen, 2002 DTC 1479 (TCC)

The taxpayer was precluded from making an ITC claim in April 1999 with respect to expenditures incurred by its 1986 taxation year notwithstanding...

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Administrative Policy

2 October 1992 Memorandum 921938 (September 1993 Access Letter, p. 421, ¶C117-204)

An amount erroneously deducted as an ITC in a statute-barred year would be regarded as deducted for purposes of the definition, in light of the...

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Paragraph (a.1)

Administrative Policy

3 November 2008 External T.I. 2008-0278431E5 F - Déménagement hors Canada du siège soc. de société

In the context of a general discussion of consequences of a Canadian corporation with a start-up Canadian manufacturing operation in Canada, as...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(ii) OECD Commentary informs allocation of sales through non-resident office to Cdn manufacturing operation 172
Tax Topics - Income Tax Act - Section 250 - Subsection 250(5) central management and control test overridden 122
Tax Topics - Income Tax Act - Section 4 - Subsection 4(1) - Paragraph 4(1)(b) s. 4(1)(b) requires allocation between Canada and another country on basis of relative profit contribution 172

Paragraph (m)

Administrative Policy

26 September 2007 External T.I. 2007-0252621E5 F - Crédit pour la création d'emplois pour apprentis

Are taxpayers who filed their federal tax returns before the enactment of the apprenticeship job creation tax credit required to file amended...

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Qualified Construction Equipment

Administrative Policy

5 September 1991 Memorandum (Tax Window, No. 10, p. 17, ¶1474)

A truck equipped with a crane or steam shovel normally would be considered to be automotive equipment, and only the crane or steam shovel will...

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Qualified Expenditure

Cases

Alcatel Canada Inc. v. The Queen, 2005 DTC 387, 2005 TCC 149

S.7 employment benefits under an employee stock option program realized by employees engaged in qualifying scientific research activities...

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Words and Phrases
expenditure

See Also

Tigney Technology Inc. v. M.N.R., 97 DTC 414 (TCC)

The taxpayer, which was performing cancer research in Canada for a Swedish firm, incurred costs in respect of a temporary facility in Kentucky....

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 37 - Subsection 37(1) 122

Cultures LaFlamme (1984) Inc. v. MNR, 93 DTC 603, [1993] 1 CTC 2634 (TCC)

The Minister was unsuccessful in a submission that the qualified expenditures of the taxpayer should be reduced by the amount of income derived by...

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Words and Phrases
expenditure

G.A. Borstad Associates Ltd. v. MNR, 92 DTC 1743, [1992] 2 CTC 2146 (TCC)

After finding that the Act made reference to expenditures (or expenses) made in contradistinction to expenditures (or expenses) incurred, Garon J....

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Administrative Policy

7 October 2005 APFF Roundtable Q. 24, 2005-0141141C6 - Stock option benefits and SR&ED tax credit

Description of circumstances in which a corporation may claim an ITC for the value of a taxable benefit included in the income of employees under...

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Application Policy SR & ED 96-03 "Claimants' Entitlements and Responsibilities".

Paragraph (a)

See Also

Andre Lamy Medicine Professional Corporation v. The Queen, 2020 TCC 61

Dr. Lamy, a cardiac surgeon and researcher, who was the director, officer and shareholder of the taxpayer, was found by D’Arcy J to have...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Agency required individual billing to OHIP does not preclude earning of medical practice income by professional corporation 150
Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) surgeon carried out his research qua employee of his professional corporation 179

Qualified Property

Cases

Burger King Restaurants of Canada Inc. v. Canada, 2000 DTC 6061 (FCA)

Although Burger King restaurant were used for "processing" (given that the ordinary meaning of that word did not exclude the preparation of food),...

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Words and Phrases
primarily

Labrador Offshore Shipping Co. Ltd. v. The Queen, 90 DTC 6096 (FCTD)

The taxpayer, which was resident in Nova Scotia, leased a diving support vessel to Petro-Canada, which used the vessel outside Nova Scotia in its...

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Words and Phrases
use
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 255 45

Mother's Pizza Parlour (London) Ltd. v. The Queen, 88 DTC 6397, [1988] 2 CTC 197 (FCA)

A Mother's Pizza restaurant, which devoted 25% of its floor area and 30% of its payroll to its kitchen, and the balance to the dining rooms and...

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Lor-Wes Contracting Ltd. v. The Queen, 85 DTC 5310, [1985] 2 CTC 79 (FCA)

"[T]he words 'primarily for the purpose of logging' are not followed by the words 'by him' or otherwise qualified so as to limit the benefit of...

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Mother's Pizza Parlour Ltd. v. The Queen, 85 DTC 5271, [1985] 1 CTC 361 (FCTD), aff'd supra.

Mother's Pizza Parlour buildings were not used for "processing". The investment tax credit was intended to provide an incentive for investment in...

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O'Neill v. The Queen, 85 DTC 5026, [1985] 1 CTC 682, [1984] CTC 682 (FCTD)

The taxpayer, who was in the business of purchasing fish at dockside for re-sale to fish processing plants, used an air unloader to pneumatically...

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Bunge of Canada Ltd. v. The Queen, 84 DTC 6276, [1984] CTC 284 (FCA)

Facilities that were used for discharging grain from grain elevators into outgoing ships and which stood over 200 feet from the grain elevators...

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See Also

Pêcheries Yvon Savage Inc. v. The Queen, 2012 DTC 1059 [at 2781], 2011 TCC 477

Favreau J. denied the taxpayer's investment tax credits in respect of a substantial renovation on a shrimp fishing boat, because the boat had been...

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Ateliers Ferroviaires de Mont-Joli Inc. v. The Queen, 2011 DTC 1358 [at 2006], 2011 TCC 352

The taxpayer's parent company ("Séma") was in the business of providing consulting and maintenance services to the Canadian National Railway...

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Albert v. The Queen, 2009 DTC 1114 [at 603], 2009 TCC 16 (Informal Procedure)

Instruments that a dentist used to prepare ceramic restorations did not qualify as equipment used by him for processing goods "for sale" given...

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H.B. Barton Trucking Ltd. v. The Queen, 2009 TCC 376

In finding that a subcontractor, whose business involved chipping logs and hauling the wood chips directly to a pulp and paper mill for processing...

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Stevenson v. The Queen, 2001 DTC 1019 (TCC)

An organization set up by the Saskatchewan government to assist the agricultural industry tested a combine for approximately 115 hours (roughly...

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Capilano International Inc. v. The Queen, 95 DTC 915, [1996] 1 CTC 2254 (TCC)

The taxpayer, which at the time was engaged exclusively in seismic exploration in western Canada, bought telemetry equipment for the first time...

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Produits L.B. (1987) Ltée v. The Queen, 93 DTC 1541, [1993] 2 CTC 2625 (TCC)

After accepting that packaging, although not itself a manufacturing or processing activity, constitutes such an activity when it comes at the end...

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Laurent Goulet & Fils Inc. v. MNR, 92 DTC 1611 (TCC)

At the time the taxpayer contacted the lessor ("Hewitt") of equipment to it that it wished to exercise the purchase option, Hewitt suggested...

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Re PPG Industries Canada Ltd. (1984), 10 DLR (4th) 476 (Ont HC)

Storage bins were held to form an integral part of the appellant's overall process for manufacturing plate glass, and thereby constituted...

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Coca Cola Ltd. v. Dep. MNR, 84 DTC 6081, [1984] CTC 75 (FCA)

Machinery or apparatus for use in "the manufacture or production of goods" can include machinery that is used after the moment when a usable and...

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Re Nabisco Brands Ltd. (1984), 45 OR (2d) 602 (SCO), aff'd 53 OR (2d) 736 (Ont. D.C.)

Silos used in a milling operation to store, mix and decontaminate wheat constituted "machinery and equipment used for manufacturing",...

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Commr. of N.W.T. v. Pine Point Mines Ltd., [1981] 5 WWR 420 (N.W.T.S.C.)

A mining dragline constituted "machinery" and "equipment" for purposes of the Taxation Ordinance (N.W.T.).

Newaygo Forest Products Ltd. v. Min. of Rev. of Ontario, [1981] C.T.C 118 (SCO)

Lumber sorting and stacking equipment was found to form part of the taxpayer's production line for the manufacture of lumber from logs, and thus...

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Administrative Policy

28 April 2015 External T.I. 2015-0576511E5 - Fishing vessels and Atlantic Investment Tax Credit

New fishing vessels that otherwise meet all the requirements set out in the definition of qualified property are eligible for the Atlantic ITC if...

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29 May 2014 External T.I. 2014-0517371E5 - Manitoba Investment Tax Credit

In a redacted response to an inquiry on the Manitoba manufacturing investment tax credit rules, which incorporated by reference the federal...

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11 July 2013 Internal T.I. 2013-0490091I7 - Qualified Property

Cancelled IT–331R provided that:

Where used equipment is renovated by a vendor and those renovations are so significant that the equipment, when...

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6 October 2011 External T.I. 2011-0417811E5 - Investment Tax Credit and 16.1(1)

Where a lessor acquires a depreciable property that has never been used or leased by any person before the time it is leased to a lessee, and they...

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4 February 1994 Internal T.I. 9333597 F - Trucks Hauling Wood Chips - Qualified Property?

Trucks and trailers used by independent contractors to haul woodchips from a woodchipper, or from a saw mill operation, to a mill are considered...

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9 May 1991 T.I. (Tax Window, No. 3, p. 29, ¶1254)

The Ontario superallowance for scientific research and development, and the Ontario current cost adjustment, are not "government assistance", and...

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31 May 1990 T.I. (October 1990 Access Letter, ¶1477)

Discussion of criteria respecting when rebuilt machinery will qualify as new machinery.

28 May 1990 T.I. (October 1990 Access Letter, ¶1476)

Discussion whether a pulp mill qualifies as a facility under the RDIA; and whether equipment used by an oil well service company, and oil and gas...

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28 February 1990 T.I. (July 1990 Access Letter, ¶1333)

Discussion of the allocation of investment tax credits to the corporate members of a partnership.

12 January 1990 T.I. (June 1990 Access Letter, ¶1275)

Machinery held by a consignee had not been "acquired" by it and therefore was not qualified property of the consignee.

12 September 89 T.I. (February 1990 Access Letter, ¶1124)

Vessels which were used within Canada's 200 mile fishing limit but outside the 12 mile territorial waters of Canada were not used in Canada for...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 255 28

Paragraph (c)

Cases

Stark International Inc. v. The Queen, 2019 TCC 248

In order to be Class 43 depreciable property, oil processing equipment of the taxpayer had to qualify as property acquired by the taxpayer to be...

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Words and Phrases
use
Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 29 oil-processing equipment was for sale even though initial use was to process customer's oil 673

Administrative Policy

20 May 2014 External T.I. 2014-0517331E5 F - CII - exploitation agricole

Two taxpayers, dealing at arm's length and carrying on an unincorporated farming business, purchased farm equipment in a qualifying region for use...

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Words and Phrases
primarily
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 127 - Subsection 127(27) no ITC reversal if unanticipated transfer of equipment to a farm outside the region 172
Tax Topics - General Concepts - Ownership co-owners entitled to pro rata ITCs 63

Subparagraph (c)(i)

See Also

Environnement Sanivac Inc. v. ARQ, 2016 QCCQ 9461

Some of the trucks in the fleet of trucks of the taxpayer (“Sanivac”) were non-customized trucks used to pump out used oil from customers’...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Schedules - Schedule II - Class 29 trucks used both for transporting and decanting dirty oil were M&P equipment 138

Qualified Transportation Equipment

Cases

Canada v. McMynn, 97 DTC 5325 (FCA)

The individual taxpayers, who purchased buses in order to lease them for use in the business of their companies, did not qualify for the credit...

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Words and Phrases
transport

Specified Percentage

Administrative Policy

19 December 2012 External T.I. 2011-0425581E5 F - CII - régions admissibles-Montérégie-Rive-Sud

Is the Montérégie South Shore region eligible for investment tax credit ("ITC") purposes? After noting that this region is not in Newfoundland...

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Subsection 127(10.1) - Additions to investment tax credit

Administrative Policy

25 July 1989 Memorandum (Dec. 89 Access Letter, ¶1056)

The calculation in s. 127(10.1) includes only those scientific research and experimental development expenditures made directly by the taxpayer...

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Subsection 127(10.2) - Expenditure limit determined

Administrative Policy

11 January 2008 External T.I. 2007-0227061E5 F - Revenu imposable sociétés associées non-résidentes

Should the taxable income of non-resident associated corporations, which are not taxable in Canada pursuant to s. 2(3), be taken into account in...

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5 June 2012 External T.I. 2011-0417971E5 F - Sociétés associées - CII

Corporation A (a Canadian-controlled private corporation with a January 31 year end) acquires control of Corporation B (a private corporation...

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15 November 2011 External T.I. 2011-0423671E5 - Expenditure Limit

The taxable income of foreign subsidiaries must be taken into account in determining the expenditure limit.

16 January 2008 External T.I. 2007-0232751E5 F - Éléments "A" et "B" du paragraphe 127(10.2)

Xco, a Canadian-controlled private corporation, wholly-owns Yco, a U.S. corporation, with no taxable income in Canada and whose profits are taxed...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 125 - Subsection 125(5.1) no inclusion of taxable capital regarding associated non-resident with no Canadian PE 226

Subsection 127(10.22)

Administrative Policy

15 January 2010 External T.I. 2009-0343841E5 F - Application du paragraphe 127(10.22)

The voting and participating shares of Opco 1 are held by Investco 1 (30%), Investco 2 (30%) and its two founding shareholders (20% each). The...

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Subsection 127(11) - Interpretation

Paragraph 127(11)(b)

Administrative Policy

28 May 1991 Memorandum (Tax Window, No. 3, p. 14, ¶1265)

Products of the extractive industries are not "finished goods".

Subsection 127(11.1) - Investment tax credit

See Also

Gaston Cellard Inc. v. The Queen, 2005 DTC 699, 2002 DTC 1890 (TCC)

The capital cost for investment tax credit purposes of a new sawmill that the taxpayer purchased out of expropriation proceeds was the actual cost...

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Paragraph 127(11.1)(b)

Administrative Policy

22 January 2007 External T.I. 2006-0212641E5 F - Crédit de taxe sur le capital du Québec

Under s. 1135.1 et seq., a corporation may benefit from a non-refundable capital tax credit for a taxation year, equal to 5% of the amount of the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 13 - Subsection 13(7.1) Quebec tax credit for qualified investments is government assistance recognized under s. 13(7.1) rather than s. 12(1)(x) 298

Paragraph 127(11.1)(c)

See Also

Tyoxide Canada Inc. v. The Queen, 93 DTC 1499, [1994] 1 CTC 2569 (TCC)

A Quebec tax credit equal to 10% of the wages of Quebec employees of the taxpayer engaged in research reduced the amount of the taxpayer's...

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Administrative Policy

25 August 1994 External T.I. 9417185 - SR&ED

"Where, under a contractual arrangement, a non-resident taxpayer does not carry on any business in Canada and reimburses a taxpayer in respect of...

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19 March 1993 T.I. (Tax Window, No. 29, p. 1 ¶2442)

Where under a contractual arrangement the S.R.& E.D. expenditures of a Canadian corporation are reimbursed by a related non-resident corporation...

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Subsection 127(11.2) - Time of expenditure and acquisition

Administrative Policy

9 September 1992 T.I. (Tax Window, No. 24, p. 17, ¶2210)

Where a property acquired by the original owner is not "available for use" under the capital cost allowance rules, the subsequent owner of the...

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Subsection 127(11.4) - Special rule for eligible salary and wages — apprentices

Administrative Policy

Application Policy SR & ED 96-01 "Reclassification of SR & ED Expenditures per Subsection 127(11.4)".

Subsection 127(17) - Assessment

Administrative Policy

88 C.R. - Q.45

The "tax otherwise payable" is reduced by foreign tax credits.

Subsection 127(18) - Reduction of qualified expenditures

Administrative Policy

18 July 2001 External T.I. 2001-006967

"Where, under a contractual arrangement, a non-resident does not carry on any business in Canada and reimburses a Canadian taxpayer in respect of...

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30 June 1998 External T.I. 9809735 - SR&ED

A government grant received by a taxpayer which is to assist in the construction of a building in which SR&ED will be carried out and in which...

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24 September 1997 Internal T.I. 9718257 - INTERPRETATION OF SUBSECTION 127(18) OF THE ACT

The policy intent is that s. 127(18) applies on a project-by-project basis, and the French version will be amended to reflect this policy.

Subsection 127(19) - Reduction of qualified expenditures

See Also

PSC Elstow Research Farm Inc v. The Queen, 2009 DTC 168, 2008 TCC 694

Research grants received by the parent of the taxpayer that had nothing to do with its research facility did not reduce the taxpayer's qualified...

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Administrative Policy

Guidance: How the Canada emergency wage subsidy affects SR&ED claims 19 February 2021 CRA Webpage

Example showing application of CEWS in computing ITCs under the traditional and proxy methods

Example of the Canada emergency wage subsidy applied...

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Subsection 127(27)

Administrative Policy

20 May 2014 External T.I. 2014-0517331E5 F - CII - exploitation agricole

Two taxpayers, dealing at arm's length and carrying on an unincorporated farming business, purchased farm equipment in a qualifying region for use...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 127 - Subsection 127(9) - Qualified Property - Paragraph (c) test is of intention on acquisition to use over 50%, during months of likely use during the equipment’s lifetime, on farm in the region 222
Tax Topics - General Concepts - Ownership co-owners entitled to pro rata ITCs 63