2018 SR&ED TAX CASES

SR&ED TOPIC APPELLANT PRIMARY ISSUE WIN / LOSS RULING & RATIONALE IMPLICATIONS & OPPORTUNITIES SIGNIFICANCE
Technological eligibility
Defining Prior Art Lehigh Advance if others have achieved? LOSS Need evidence of prior art search Document at start of each project MODERATE
S58 shortcut to ruling Lehigh Can Judge omit need for evidence LOSS SR&ED issues to complex No short-cut to ruling using S. 58 MODERATE
Systematic Investigation Mac & Mac Hydrodemolition Lack of records LOSS Lack of detailed measurements Generate & retain evidence MODERATE
Financial issues
Intent of capital VLN If >90% SR&ED intent LOSS Actual SR&ED use 36% Evidence of intent needs to explain use LOW
Fine for SR&ED fraud Tempora Level of fine LOSS Each of 3 charged 100% fine is 300% of amount claimed HIGH
Government assistance Borealis Geopower Use of trust to defer recognition LOSS includes “expected to receive” Use accrual basis when costs incurred MODERATE
Shareholder benefit Guy Laliberte Space flight $4 vs. $42 million LOSS full amount taxable Denied as marketing expense MODERATE

Technological Eligibility 

Financial issues