Tax Court of Canada SR&ED Cases


Download SR&ED judgments listing

View Analysis & Videos


SR&ED cases regarding "Technological Eligibility"
TECHNOLOGICAL Northwest Hydraulics Win1998"system uncertainties" basis for eligibility?97-531-IT-G 4 of 5 projects eligible due to "system uncertainties"Landmark case with "exemplary " project High
ADVANCEMENT Rainbow Pipeline Win1999definition of "technological advancement" (TA)96-4369-IT-Grejection of an hypothesis is an advanceSignificant precedent definition of "TA"High
(TA)Airmax*Win2012Technological Advancement (TA)2012 TCC 376system uncertainties re. heat source, pressure, ductsUse of informal appeal procedureHigh
Les Abeilles (GE)Win2015Process improvements – 4 projects little evidence2014 TCC 313Admissability of verbal evidence if “highly credible”Credible witnesses counters weak documentationModerate
6379249 Canada Inc.Win2015Printer design - problems after commercial release2015 TCC 77Strong evidence of TU and TA + exampleExcellent example of eligible projectHigh
Acsis EHRWin2016Work to increase stability2016 TCC 50No existing methodsStill lacks detail on specific hypotheses Moderate
FormadrainWin2017New concrete methods chemical & mechanical2017 TCC 42Method unique in industry & cross disciplinaryExcellent example of eligible projectHigh
A&D PrecisionWin2019TA in precision machine projects2019 TCC 48System uncertainty but still lacks detailUse of expert testimony favorableModerate
Beton MobileWin2019Concrete processes - 5 criteria 2019 CCI 278 6 of 14 projects eligible each detailedquestions on why some ineligibleHigh
CRL EngineeringWin2019Distributed computing Evidence & Advancement2019 TCC 65PhD researcher project published scholarly journal sequentially, progressively complex options via system snapshots Moderate
Andre Lamy MPC Win 2020Who controls medical research? 2020 TCC 61Work by Dr. deemed on behalf of MPC 4 eligible project examples - 2 with sponsorsHigh
LifeChoiceLoss2017Insufficient testing of hypotheses2017 TCC 21Insufficient testing of hypothesesChange in interpretation of required testing?High
Flavornet*Loss2017Defining Standard practice2017 TCC 1794 of 5 criteria not metDid TCC consider relevant evidence?High
Novalia Loss2017Wind turbines - Lack of Qualifications? PhD in music.2016 TCC 81Lack of Qualifications? PhD in music.Hypotheses must be based in scienceModerate
Robotx Solutions Inc.Loss2017Defining Standard practice2017 TCC 73Process methods not benchmarkedUnclear how different that Les Abeilles?Moderate
SYSTEMATIC Hun-Medipharma*Win1997eligibility of analysis without "clinical trials"97-2305-IT-I SR&ED work can be "experimentation OR analysis""SI" envisions contemplation of technological alternativesModerate
INVESTIGATIONRIS Christie Loss 1996"lack of documentation"[1996] ETC 537 ineligible - lack of any experimentation or analysisSuccessful result &/or patent NOT proof of experimentationModerate
(SI)Win 1999death of key witness[1999] ETC 2004 engineer died prior to trial - court sympatheticcourts may be sympathetic for CCPC's in extreme circumstancesModerate
Murray Arlin DPC*2012"lack of documentation"2012 TCC 133High
Mac & Mac Loss2018Hydrodemolition - Documentation of hypotheses2017 TCC 256Lack of detailed measurementsGenerate & retain evidenceModerate
IndusolLoss 2020Systematic Investigation (SI)2020 TCC 103No SI even though TU (Technological Uncertainty)Need to show progressive hypothesesModerate
National R&DLoss2020Systematic Investigation (SI)2020 TCC 47No SI even though TUNeed to show progressive hypothesesModerate
SR&ED cases regarding Financial issues
WAGESSynchrosat Loss1995allocating salary to only SR&ED activities2000-1378-IT-I only SR&ED percentage claimableneed system to document employee experimenation timeLow
ErgorechercheLoss1998time allocation - SR&ED vs. non-SR&ED projects[1998] CTC 2062 "reasonable" basis for allocation required could structure "non-SR&ED" done during unpaid timeModerate
AlcatelWin 2005stock options - whether SR&ED "cost" incurred2005 TCC 149SR&ED "cost" is dilution of shareholder interestCourts contemplate "costs" not in taxable incomeHigh
Law then changed legislation to disallow > Nov. 14, 20052 year window to amend 2004 - 2005 taxation yearsHigh
JaftLoss2016Wages only payable if SR&ED approved2015 MBCA 77could claim unpaid wages on sch 32 line 315
OldcastleWin2017SR&ED wages based on sales2016 CCI 183Salary & wages definition 248(1)Payments not considered commissionHigh
AG ShieldWin2017Allocation of SR&ED wages2017 TCC 68100% allowed even though 23%Dividends & non T-4 payments included?High
MATERIALSConsoltex Win 1997materials used in SR&ED then sold97 DTC 724 eligible if required for SR&EDshort-lived precedent to include "commercial materials"Low
Draw New legislation repayment of ITC's on saleNew legislation repayment of ITC's on saleClarification: labour eligible - materials "sold" excluded High
ASSISTANCE/Com Dev Ltd.Win1999government fees - "assistance" or "revenue"96-4343-IT-G fixed price contract not purchase of SR&EDStructure SR&ED contracts-"taxpayer" to bear "risks" High
EXPERIMENTALCultures LaflammeWin1989sale of experimental production89-2514(IT)sale irrelevant if SR&ED performedclarifies SR&ED labour eligible despite subequent saleHigh
UNPAID ChartwellLoss2002eligibility of unpaid amounts / bad debts2004 TCC 728claim costs during year incurred (then 78(4))opportunity to claim unpaid wages (*unless forgiven)High
FOREIGNLGL Loss1999data collection outside Canada SR&ED?96-4726 (IT)G ineligible if physically outside Canadacourts took literal interpretation of "in Canada"Moderate
EXPENSESDrawSubsequent events: eligible if within "EEZ"Subsequent events: eligible if within "EEZ"marine work eligible to 200 nauts - still "unclear" travel abroadLow
FILING Datacalc Research Loss2000extension of 18 month filing deadline2000-1413-IT-G qualified expenditures by filing due dateobject under proper sections of ITA - see Alex ParallelLow
DEADLINEAlex Parallel Win1998basis for extension of filing deadlineT-1512-97 CRA cannot restrict Minister extend deadlinesextension for reasons other than CRA IC (illness/disasters)High
Draw 2005Legislation Nov. 17, 2005 no SR&ED extensionLegislation Nov. 17, 2005 no SR&ED extensionmust file within 18 months of year end - preferably 15 Moderate
6379249 Canada Inc.Win2015Proving project filed with claim2015 TCC 77Verbal evidence if “highly credible”Moderate
Easyway CattleLoss2016Failed to file sch 31 2015 TCC 211All prescribed info in prescribed formdangers of filing past 15 month CRA admin deadlineModerate
WestsourceLoss2017Complete claim2017 TCC 9Projects only filed by related Co.18 month deadline is absoluteModerate
QUALIFIED All Colour ChemicalsLoss1993Can CCPC partners claim 35% refundable ITC's[1993] CTC 3050127(8) partnership "over-rides" 127(10.1) refundsQualified CCPC's should avoid using SR&ED partnershipsHigh
CCPC STATUSHSC ResearchWin1995Factors in evaluating defacto controlCTC 2283 (TCC)separate directors - no control evidenced Landmark case on definition of "defacto control"High
Mimetex Loss1999if US director with 50% of shares has control? 1999-4847-IT-GUS director w/o consent Canadian director(s)consent from 1 of 2 Canadian directors to solve problemHigh
Terra RemoteWin2006Is shareholder with < 50% ownership arm's length?2006 TCC 279ITA 256 (control) & 251 (related persons) Confusing "specified employee" (>10%) with "arm's length"Moderate
Mindready SolutionsLoss2015Was private Co. controlled by Public?2015 CCI 17Several factors determining factual controlModerateModerate
Aeronautic Dev CorpLoss2017Defacto Control2017 TCC 39Undue influenceBe careful even if <50% votesModerate
CO2 SolutionsLoss2019Control by public co.2019 CCI 286Defacto control establishedLoss with costsModerate
ITC USEAinsworth LumberWin2001ordering of ITC use - refundable vs. non-refundable98-1052-IT-GAct clarifies that taxpayer "may" deduct [credits]taxpayer elects order of refundable vs. non-refundable creditsModerate
SR&ED FRAUDTemporaLoss2018level of fineSCCEach of 3 charged 100% for false representationsfine is 300% of amount claimedHigh
R v. Elhami Loss2017level of fine2017 QCCQ 2684Each of 3 parties charged 50% false datesfine is 150% of amount claimedHigh
REASSESSMENTRio Tinto AlcanLoss2017Can CRA reassess 5 years back?2017 TCC 67Filed waivers for other reasonsIncreased risk to all claimantsHigh
SHAREHOLDER Guy LaliberteLoss2018Space flight $4 vs. $42 million2018 TCC 186Full amount taxableDenied as marketing expenseModerate

Tax court of Canada SR&ED strategies 

Nov. 24, 2017 Interview 

the Honourable Donald Bowman,

Former Chief Justice of the Tax Court of Canada



PDF handouts