The Income Tax Act on SR&ED
Key excerpts from Canada’s Income Tax Act that govern the SR&ED program. Each entry opens as a web page with a short Scitax commentary, the text of the provision, and a link to the archived PDF. These are the statutory provisions most often cited in claim preparation, CRA reviews and appeals.
The Legislation: Key Excerpts from the Income Tax Act
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Income Tax Act s. 248(1): Definition of SR&ED [PDF]
The statutory definition of "scientific research and experimental development", the starting point for every eligibility question.
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Income Tax Act s. 37(1): Eligible SR&ED Expenditures [PDF]
The provision that establishes which expenditures may be pooled and deducted in respect of SR&ED carried on in Canada.
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Income Tax Act s. 127(9)(m): SR&ED Claims Require Prescribed Forms [PDF]
The basis of the requirement that SR&ED claims be filed on CRA's prescribed forms within the statutory deadline.
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Income Tax Act s. 230: Records and Books [PDF]
The record-keeping obligations that underpin CRA's expectation of contemporaneous documentation for SR&ED claims.
Corollary Rules
- Income Tax Act s. 37(8)(a): ASA Definition and Criteria [PDF]
- CRA Interpretation Bulletin IT-458R2: CCPC Definition [PDF]
- Income Tax Act s. 125(7): CCPC Definition [PDF]
- Income Tax Act s. 127(25): Deemed Contract Payment [PDF]
- Income Tax Act s. 248(1): Definition of Specified Employee [PDF]
- Income Tax Act s. 127(26): Payments 180 Days from Year End [PDF]
- Income Tax Regulations s. 2900(6): Cap on Proxy Overhead Amount [PDF]
- Income Tax Act s. 256(1): Associated Corporations [PDF]
Limits on Refundable SR&ED Benefits for Excluded Corporations (Not-for-Profit, Government Owned, etc.)
- Income Tax Act s. 127.1: No Refund for Excluded Corporations [PDF]
- Income Tax Act s. 127.1(2): Definition of Excluded Corporation [PDF]
- Income Tax Act s. 149(1): Tax Exempt Entities [PDF]
Repayment of SR&ED: Recapture Rules
- Income Tax Act s. 127(27): Recapture of SR&ED Investment Tax Credits [PDF]
- CRA Application Policy 2000-04R2: Recapture of Investment Tax Credit [PDF]
Appeals and Work Outside Canada
- Income Tax Act s. 169(1): Timing of Appeals [PDF]
- Income Tax Act s. 37(1.4), (1.5) and (2): SR&ED Work Outside Canada [PDF]