Knowledge and Publications: The Income Tax Act on SR&ED [PDFs]
Key excerpts from Canada’s Income Tax Act that govern the SR&ED program, archived here as PDFs for quick reference. 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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Definition of SR&ED — Section 248(1) [PDF]
The statutory definition of “scientific research and experimental development” — the starting point for every eligibility question.
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Eligible Expenditures — Section 37(1) [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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Claims Must Be Submitted on Prescribed CRA Forms — see paragraph (m) of 127(9) [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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Records and Books — Sections 230–233 [PDF]
The record-keeping obligations that underpin CRA’s expectation of contemporaneous documentation for SR&ED claims.
Corollary Rules
- ASA Definition and Criteria — Section 37(8)(a)(ii)(A) [PDF]
- CRA Interpretation Bulletin IT-458R2 — CCPC Definition [PDF]
- CCPC Definition — Income Tax Act 125(7) [PDF]
- Deemed Contract Payment — Section 127(25) [PDF]
- Definition of Specified Employee — Section 248(1) [PDF]
- Payments 180 Days from Year End — Section 127(26) [PDF]
- Cap on Proxy Overhead Amount — Regulation 2900(6) [PDF]
- Associated Corporations — Section 256(1) [PDF]
Limits on Refundable SR&ED Benefits for Excluded Corporations (Not-for-Profit, Government Owned, etc.)
- No Refund for Excluded Corps — Section 127.1(1) [PDF]
- Definition of Excluded Corp — Section 127.1(1) [PDF]
- Tax Exempt Entities — Section 149.1 [PDF]
Repayment of SR&ED: Recapture Rules
- Legislation: Repayment of SR&ED Recapture — Section 127(27) [PDF]
- CRA Application Policy 2000-04R2 — Recapture [PDF]