Scientific Research & Experimental Development

Cases

National R&D Inc. v. Canada, 2022 FCA 72

In response to the taxpayer’s submission that the Tax Court judge erred in relying on the test from Northwest Hydraulic in that it was not a...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

KAM-PRESS METAL PRODUCTS LTD. v. HER MAJESTY THE QUEEN, 2021 FCA 88

The taxpayer acknowledged that the work performed by it for which it claimed investment tax credits did not follow the scientific method as...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Jentel Manufacturing Ltd. v. Canada, 2012 DTC 5031 [at 6682], 2011 FCA 355

The taxpayer, a producer of plastic containers, undertook a project to "improve the existing product to make it a smaller and significantly...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Blue Wave Seafoods Inc. v. Canada, 2006 DTC 6155, 2006 FCA 81

The Tax Court judge had committed no reviewable error in finding that in the last two taxation years under review, there was no longer any...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Words and Phrases
consume

R I S - Christie Ltd. v. Canada, 99 DTC 5087 (FCA)

The taxpayer was entitled to have its expenditures treated as SR&ED notwithstanding the absence of documentary evidence relating to the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

See Also

Airzone One Ltd. v. The Queen, 2022 TCC 29

The taxpayer (“Airzone”) provided comprehensive air quality monitoring services to government agencies, international organizations, and...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - General Concepts - Evidence taxpayer could call and cross-examine the CRA technical expert 143

6398316 Canada Inc. v. The Queen, 2021 TCC 17

The taxpayer constructed a house intended to be uniquely energy efficient while staying within the price range of a “regular home”. It was...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

WRD Borger Construction Ltd. v. The Queen, 2021 TCC 40 (Informal Procedure)

The taxpayer’s business included installing water mains and culverts in housing subdivisions. A particular project which it treated as SR&ED...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Logix Data Products Inc. v. The Queen, 2021 TCC 36

The taxpayer was an information technology company that undertook development of dual-purpose shingle sized solar panels that would be...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - General Concepts - Evidence individual did not qualify as a participant expert 128

Allegro Wireless Canada Inc. v. The Queen, 2021 TCC 27

The taxpayer provided a software platform to its clients to allow them to communicate remotely with their workers through wireless handheld...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

National R&D Inc. v. The Queen, 2020 TCC 47, aff'd 2022 FCA 72

The taxpayer (“National”), which provided consulting services to clients, claimed to have made SR&ED expenditures of $68,029 and generated...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Béton mobile du Québec Inc. v. The Queen, 2019 TCC 278

The taxpayer (BMQ) used mobile concrete mixers to provide concrete at the site of construction or major repair projects. The following projects...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Clevor Technologies Inc. v. The Queen, 2019 TCC 166 (Informal Procedure)

The taxpayer’s software, which determined the optimal timing and sequencing of steps for large construction or mining projects, ceased to work...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Exxonmobil Canada Ltd. v. The Queen, 2019 TCC 108

A participant in the Hibernia joint venture, treated its share of the costs of the initial well in one of the oil reservoirs (which was expected...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 1204 - Subsection 1204(3) - Paragraph 1204(3)(a) income not derived from transporting if no actual revenues therefrom 378

CRL Engineering Ltd. v. The Queen, 2019 TCC 65 (Informal Procedure)

The taxpayer, which was an engineering firm specializing in developing public transit related technology, engaged in a project to develop its...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Concept Danat Inc. v. The Queen, 2019 TCC 32 (Informal Procedure)

The taxpayer, whose business was to embroider or imprint publicizing lettering on clothing engaged in three projects, none of which were found by...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 37 - Subsection 37(1) - Paragraph 37(1)(a) - Subparagraph 37(1)(a)(i) SR&ED claim could not be based on estimated hours worked 141

Mac & Mac Hydrodemolition v. The Queen, 2017 TCC 256 (Informal Procedure)

The taxpayer (“Mac & Mac”) was approached by a potential client to use its expertise in hydrodemolition to develop a technique to remove the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Life Choice Ltd. v. The Queen, 2017 TCC 21 (Informal Procedure)

The taxpayer was a natural health product company. Its alleged SR&ED consisted of reviewing the literature and consulting other researchers in...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Flavor Net Inc. v. The Queen, 2017 TCC 179 (Informal Procedure)

Project 705 (the “Plant Sterols Beverage Project”) of the taxpayer, which carried on an energy drink business, sought to develop a beverage...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Robotx Solutions Inc. v. The Queen, 2017 TCC 73 (Informal Procedure)

The taxpayer was a corporation that improved customer’s equipment by increasing their lifespan, improving their security mechanisms or by...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Formadrain Inc. v. The Queen, 2017 TCC 42 (Informal Procedure)

The taxpayer, whose business was the repair of sewers and other drains from the inside rather than through excavation, undertook two projects to...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Joel Theatrical Rigging Contractors (1980) Ltd. v. The Queen, 2017 TCC 6 (Informal Procedure)

The taxpayer (“JTR”) undertook a project in 2008 (the “Fire Curtain Project”) and in 2009 (the “Manual Override Project”) to solve two...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Words and Phrases
trial and error

Emotion Picture Studios Inc. v. The Queen, 2016 DTC 1005 [at 2519], 2015 TCC 323 (Informal Procedure)

The taxpayer was engaged in determining how on-page and off-page variables for websites interrelate to determine their Google (or other internet...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

ACSIS EHR (Electronic Health Record) Inc. v. The Queen, 2015 DTC 1212 [at 1366], 2015 TCC 263

The taxpayer had to adapt its existing system for implementing a nation-wide health information system in Belize given the severe...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Hypercube Inc. v. The Queen, 2015 DTC 1135 [at 859], 2015 TCC 65 (Informal Procedure)

Lamarre ACJ found that the taxpayer's development of code analysis software for websites was not experimental development. All problems...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

6379249 Canada Inc. v. The Queen, 2015 DTC 1109 [at 638], 2015 TCC 77

After developing and commercially launching a miniature portable printer, the taxpayer pulled the product in 2009 after identifying problems with...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Feedlot Health Management Services Ltd. v. The Queen, 2015 TCC 32

The taxpayer, a veterinary consulting firm, undertook four research projects to test new diets, supplements, and vaccines on cattle, and paid...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 37 - Subsection 37(8) - Paragraph 37(8)(a) - Subparagraph 37(8)(a)(ii) - Clause 37(8)(a)(ii)(B) work by proxy need not be "for" SRED - only "in respect of" it 320

1726437 Ontario Inc. (AirMax Technologies) v. The Queen, 2013 DTC 1008 [at 54], 2012 TCC 376 (Informal Procedure)

The taxpayer, which installed heating, air conditioning and ventilation systems in residential homes, claimed SR&ED credits relating to its "High...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Murray Arlin Dentistry Professional Corporation v. The Queen, 2012 DTC 1149 [at 3339], 2012 TCC 133 (Informal Procedure)

Woods J. found that it was not reasonable for the taxpayer, a professional corporation belonging to Dr. Arlin, to claim credits on the basis that...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Soneil International Limited v. The Queen, 2011 DTC 1282 [at 1592], 2011 TCC 391

D'Arcy J. denied the taxpayer's claimed SR&ED credits arising from the development of various electrical systems for use in wheelchairs - a power...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Advanced Agricultural Testing Inc. v. The Queen, 2009 DTC 687, 2009 TCC 190

The taxpayer in carrying out work largely under the supervision of a researcher who was not its employee or representative, and in testing the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Zeuter Development Corporation v. The Queen, 2007 DTC 41, 2006 TCC 597 (Informal Procedure)

Little J found that a project of developing an interactive software tool to assist high school students with physics and mathematics did not...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Tacto Neuro Sensory Devices Inc./Appareils Neurosensoriels Tacto Inc. v. The Queen, 2005 DTC 457, 2004 TCC 341

Work carried out by the taxpayers to improve the performance of a tactometer represented "routine techniques and standard procedures generally...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Maritime-Ontario Freight Lines Limited v. The Queen, 2003 DTC 1410, 2003 TCC 674 (Informal Procedure)

Various efforts made by the taxpayer to improve the accuracy of a freight weighing device did not qualify given that there was "some merit" in the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

C W Agencies Inc v. The Queen, 2000 DTC 2372 (TCC), aff'd 2002 DTC 6740, 2001 FCA 393

Bonner T.C.J. accepted (at p. 2382) the evidence of the Crown's expert that the cost incurred by a lottery ticket marketer in developing an...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - General Concepts - Onus 105

Knowledge Systems Inc. v. The Queen, 2000 DTC 2353 (TCC)

McArthur TCJ found (at p. 2360):

"What the Appellant did was take existing technology computer hardware and PacRat software, and record personal...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Safety Plus Inc. v. The Queen, 99 DTC 537, [1999] 3 CTC 2123 (TCC)

Two projects for the development of a system for recycling sludge or dealing more economically with the disposition of waste chemicals did not...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

116736 Canada Inc. v. The Queen, 98 DTC 1816, [1998] 3 CTC 2679 (TCC)

Before finding that the taxpayer had been engaged in qualifying SR&ED, Archambault TCJ. noted (at p. 1821) that the Act and Regulations "do not...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Data Kinetics Ltd. v. The Queen, 98 DTC 1877 (TCC)

The taxpayer, which was engaged in researching and developing advanced data management and memory management software systems for large mainframe...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Northwest Hydraulic Consultants Ltd. v. The Queen, 98 DTC 1839, [1998] 3 CTC 2520 (TCC)

The taxpayer was an engineering consultant firm that specialized in the development, management and protection of water resources. Of the five...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Telecomsyst Services Inc. v. The Queen, 97 DTC 684 (TCC)

The taxpayer was found not to be engaged in SR&ED given that the only tests conducted by it in the year in question was testing of devices already...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Locations of other summaries Wordcount
Tax Topics - General Concepts - Evidence 94

Progressive Solutions Inc. v. The Queen, 96 DTC 1232 (TCC)

Archambault TCJ. accepted the evidence of the taxpayer's expert witness that the development by the taxpayer of a program improved an existing...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

ETA Performance Systems Corp. v. MNR, 93 DTC 451, [1993] 1 CTC 2710 (TCC)

A supposed research project which folded after the initial phases of work and therefore consisted only of routine data collection and research in...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Canalerta Technologies Inc. v. MNR, 93 DTC 165, [1993] 1 CTC 2141 (TCC)

In finding that "thinking, contemplating and meditating" by a researcher did not constitute scientific research and experimental development, Rip...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Revelations Research Ltd. v. MNR, 92 DTC 1036, [1992] 1 CTC 2136 (TCC)

Christie A.C.J. accepted the evidence of the Crown's scientific expert that the proposed research program of the taxpayer was not carried out in...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Sass Manufacturing Ltd. v. MNR, 88 DTC 1363, [1988] 1 CTC 2524 (TCC)

The taxpayer's appeal failed with respect to the deduction of expenses it incurred in manufacturing a machine in accordance with the engineering...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Administrative Policy

6 February 2014 External T.I. 2013-0512191E5 - Mining Activities and SR & ED

An expenditure incurred by a resource corporation which qualifies as Canadian exploration expense cannot be a qualified expenditure in respect of...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

18 September 2013 Draft examples to illustrate key concepts in the Eligibility of Work for SR&ED Investment Tax Credits Policy

CRA provides 10 examples to clarify its position on its SR&ED Investment Tax Credits Policy:

Examples dealing with subheading 2.1.1 ("Was there a...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Eligibility of Work for SR&ED Investment Tax Credits Policy, 24 April 2015 

In the first step of CRA's two-step analysis of SR&ED ("determine if there is SR&ED" and "determine the extent of eligible work"), CRA sets out...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Eligibility of Work for SR&ED Investment Tax Credits Policy, 24 April 2015 

Regarding the second step of CRA's two-step analysis of SR&ED ("determine if there is SR&ED" and "determine the extent of eligible work"), CRA...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

19 November 2012 External T.I. 2012-0459351E5 - Shale Gas Well Drilling Classification

In considering the conditions under which a shale gas well would qualify for Canadian development expense credits, CRA noted that drilling the...

The text of this content is paywalled except for the first five days of each month. Subscribe or log in for unrestricted access.

Scientific Research and Experimental Development Directorate: "The CRA's perspective on the New SR&ED Claim Form", Tax for the Owner-Manager, Vol. 9, No. 4, October, 2009, p. 1.

Application Policy SR & ED 2002-02R "Experimental Production and Commercial Production With Experimental Development Work - Allowable SR&ED Expenditures".

Application Policy SR & ED 96-09 "Eligibility of Clinical Trials to Meet Regulatory Requirements"

Application Policy SR & ED 96-08 "Eligibility of the Preparation of New Drug Submissions"

Application Policy SR & ED 96-07 "Prototypes, Custom Products/Commercial Assets, Pilot Plants and Experimental Production"

Application Policy SR & ED 96-02 "Tests and Studies Required to meet Requirements in Regulated Industries"

SR & ED 95-03 "Claims for ISO 9000 Registration"

SR & ED 95-02R "Science Eligibility Guidelines for the Oil & Gas of Mining Industries"

SR & ED 95-01R "Linked Activities - Regulation 2900(1)(d)"

IC86-4R3 "Scientific Research and Experimental Development"

IT-151R4 "Scientific Research and Experimental Developmental Expenditures"

Application Policy SR & ED 96-08 "Eligibility of the Preparation of New Drug Submissions"

Application Policy SR & ED 96-07 "Prototypes, Custom Products/Commercial Assets, Pilot Plants and Experimental Production"

Application Policy SR & ED 96-02 "Tests and Studies Required to meet Requirements in Regulated Industries"

IT-151R4 "Scientific Research and Experimental Developmental Expenditures"

Navigation