2015–1 Newsletter: SR&ED Technology & Financial Tax Cases

2015-1 – SR&ED Tax court cases (Download) 

TOPICAL AREA APPELLANT PRIMARY ISSUE WIN – LOSE RULING & RATIONALE SIGNIFICANCE
Technological eligibility
Software Highweb & Page Software – Java & .NET LOSS No documentation of hypotheses or conclusions Moderate
Hypercube Software development LOSS Failure to define standard practice Low
Printer design 6379249 Canada Inc. End of eligible work WIN Problems after release created technology uncertainty High
Process improvement Les Abeilles (GE) Process improvements – 4 projects WIN Admissability of verbal evidence if “highly credible” Moderate
Food R&D Pro Innovation Develop new chocolate spread LOSS Routine engineering (no uncertainty > standard practice) Moderate
Evidence retention Buhler Versatile Inc. Loss / Destruction of records LOSS Must maintain even after CRA review Moderate
Financial issues
Use of livestock in R&D Feedlott Health Costs paid for study of cattle WIN Costs  eligible SR&ED subcontract payment High
CCPC status Mindready Solutions Was private Co. controlled by Public? LOSS Several factors determining factual control Moderate
18 month deadline 6379249 Canada Inc. Proving project filed with claim WIN  Admissability of verbal evidence if “highly credible”  Moderate

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