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SR&ED News

Here's what's happening in the world of SR&ED tax credits:

New SR&ED Tax Court Case Judgment

A new SR&ED appeal judgment has been posted on the Tax Court of Canada website.

The appeal is from a taxpayer who claimed that he was carrying on a business during the year under appeal, and that his business was research and development. The claimant had applied for patents for a propulsion system he had developed to be used by spacecraft without having to interact with the environment. His goal was to earn money by selling or licensing the patent. He never intended to manufacture the device. His application was refused by the patent office. Without the patent, he said, he had “nothing to sell”.

The claimant had also incorporated a business, but the company was inactive – no meeting of directors or shareholders was held, and except for corporate organization purposes, there was no resolution of directors or shareholders and no shares were issued. The company was authorized to open a bank account but did not.

The court ruled that the taxpayer was not operating a business during the years in question: “In seeking financing and a patent Mr. Payette was not carrying on a business but taking steps to start a business.” As a result he was not eligible for any SR&ED tax credits.

There was an additional concern regarding which, if any, of the costs claimed by the appellant were eligible. (He claimed legal costs, interest, costs incurred in a prior year, and his SR&ED claim may have been filed late.) Since the judge found that the claimant did not carry on a business in the year in question, he did not look further into these additional issues.

The full judgement is available from the Tax Court of Canada website.

Posted: August 5th, 2009

MEUK SR&ED Crash Course – 23 July 2009

MEUK will be holding their next SR&ED Seminar on Thursday, 23 July 2009 in Waterloo, Ontario.  The schedule is:

9:00AM – 12:00 noon: SR&ED Tax Credit – Crash Course

12:15 – 1:00PM: R&D Base Walk-through over Lunch

1:00 – 2:00PM: Patent & IP protection – discussion

2:00 – 3:30PM: SR&ED eligibility within software development

More information and registration forms are available from the MEUK website.

Posted: July 20th, 2009

New Meuk Newsletter Available

MEUK has just published their latest newsletter. It includes:

  • an overview of funding/factoring for SR&ED credits
  • a comparison chart of factoring agents in the Golden Horseshoe area
  • considerations for SR&ED claim preparers
Posted: July 20th, 2009

MEUK SR&ED Crash Course – 7 May 2009

MEUK will be holding their next SR&ED Seminar on Thursday, 7 May 2009 in Toronto, Ontario.  The schedule is:

9:00AM – 12:00 noon: SR&ED Tax Credit – Crash Course

12:15 – 1:00PM: R&D Base Walk-through over Lunch

1:00 – 2:00PM: Patent & IP protection – discussion

2:00 – 3:30PM: SR&ED eligibility within software development

More information and registration forms are available from the MEUK website.

Posted: May 1st, 2009

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