2017 SRED Tax cases and issues SR&ED TOPIC APPELLANT PRIMARY ISSUE WIN / LOSS RULING & RATIONALE IMPLICATIONS & OPPORTUNITIES SIGNIFICANCE Technological eligibility Food Science LifeChoice Systematic Investigation LOSS Insufficient testing of hypotheses Change in interpretation of required testing? HIGH Flavornet Defining Standard practice LOSS 4 of 5 criteria not met Did TCC consider relevant evidence? HIGH Mech Engineering Joel Theatrical Rigging Routine & Systematic Investigation LOSS Lack of Qualifications Documentation if not academic MODERATE Novalia (Wind turbines) Defining Standard practice LOSS Lack of Qualifications Hypotheses must be based in science MODERATE Robotx Solutions Inc. Defining Standard practice LOSS Process methods not benchmarked Unclear how different that Les Abeilles? MODERATE Civil Eng Formadrain Technological Advancement WIN Method unique in industry Are all manufacturing related claims at risk? HIGH Financial issues SR&ED wages Oldcastle SR&ED wages based on sales WIN Salary & wages definition 248(1) Payments not considered commission HIGH AG Shield Allocation of SR&ED wages WIN 100% allowed even though 23% Dividends & non T-4 payments included? HIGH Sale of ITC’s Birchcliff Energy Defining control for ITC acquisition LOSS Transfer of control Complicated shareholder agreement ineffective MODERATE CCPC status Aeronautic Dev Corp Defacto Control LOSS Undue influence Be careful even if <50% votes MODERATE Filing deadline Westsource Complete claim LOSS Projects only filed by related Co. 18 month deadline is absolute MODERATE Reassessment period Rio Tinto Alcan Can CRA reassess 5 years back? LOSS Filed waivers for other reasons Increased risk to all claimants HIGH 2017-1 SRED Tax cases and issues with links to videos & PDF handouts of analysis. Links to download SR&ED judgments Project Key Criteria Summaries (Technology) Tax court analysis using SR&ED Project format