,canada ,cu/oms & ,rev5ue ,ag5cy ,9tepret,n ,bullet9 ,,it-#aea;,r#e 7,3solidat$7 ,9 ,"o ,volume ,pr9t ,pages #a-cj ,brl ,pages ;i-vii & #a-agg ,9dex ,brl page ,9t]pret,n ,bullet9 """"""""""""""""" #a ,3t5ts """""""""""""""""""""""""""""" #d ,applic,n """""""""""""""""""""""""" #ab ,summ>y """""""""""""""""""""""""""" #ab ,4cus.n & ,9t]pret,n """"""""""""""" #ae ,9troduc;n """"""""""""""""""""""""" #ae ,def9i;n ( ,sci5tific ,rese>* & ,exp]i;tal ,develop;t """""""""" #ae ,g5]al ,4cus.n ( ,3di;ns 6,deduct """"""""""""""""""""""" #ah ,tax,n ,ye> """""""""""""""""""""" #ai ,g5]al ,require;ts """"""""""""""""" #bj ,c>ry+ ,on a ,busi;s """"""""""""" #bj ,fil+ ,require;t """"""""""""""""" #bj ,pool ( ,deducti# ,exp5ditures = ,,sr&,,ed ,c>ri$ on 9 ,canada """" #bd ,calcul,n ( ,pool ( ,deducti# ,,sr&,,ed ,exp5ditures """"""""" #bd ,exp5ditures (a ,curr5t &(a ,capital ,nature = ,,sr&,,ed ,c>ri$ ,on 9 ,canada """"""""""" #bh ,g5]al """"""""""""""""""""""""" #bh ;i ,9dex ,ov]view """"""""""""""""""""" #bh ,classific,n ( exp5ditures """ #cj ,tim+ ( exp5ditures """""""""" #ca ,excep;ns """""""""""""""""""""" #cc ,remun],n = specifi$ employees """""""""""""""""" #cc ,build+s """"""""""""""""""""" #ce ,pay;ts =! use (1 or ! "r 6use1 a build+ & pay;ts 5abl+ ! recipi5t 6acquire a build+ or l1sehold 9t]e/ #cf ,exp5ditures 6acquire "rs >is+ \ ( ,,sr&,,ed """"""""" #ch ,don,ns z ,,sr&,,ed """""""""" #dj ,projects result+ 9 ! acquisi;n ( prop]ty """""""" #dj ,exp5ditures (a ,curr5t ,nature on1 or 9 ,respect (1 ,,sr&,,ed """""""""""""""""""" #da ,g5]al """"""""""""""""""""""" #da ,exp5ditures (a curr5t nature on1 or 9 respect (1 ,,sr&,,ed3 tradi;nal me?od """ #dc ;ii ,9dex ,g5]al """"""""""""""""""""""" #dc ,exp5ditures directly attributa# 6,,sr&,,ed """""" #dd ,9t]e/ exp5se """""""""""""""" #di ,exp5ditures (a curr5t nature on1 or 9 respect (1 ,,sr&,,ed3 proxy me?od """"""" #ej ,g5]al """"""""""""""""""""""" #ej 8,all or sub/anti,y all0 & 8prim>ily0 """"""""""""""""" #eb ,g5]al purpose (fice equip;t or furniture """"""""""""""" #ec ,sal>y & wages """"""""""""""" #ed ,employees directly 5gag$ 9 ! prosecu;n ( ,,sr&,,ed """" #ee ,exp5ditures (a ,capital ,nature on1 or 9 ,respect (1 ,,sr&,,ed """""""""""""""""""" #eg ,g5]al """"""""""""""""""""""" #eg ,sep>ate prescrib$ class """"" #eh ,exp5ditures (a capital nature on1 or 9 respect (1 ,,sr&,,ed """""""""""""""""" #fj ;iii ,9dex ,pay;ts 6,be ,us$ = ,,sr&,,ed """" #fd ,g5]al """"""""""""""""""""""""" #fd ,approval ( ,m9i/] """"""""""""" #fe ,relat$ 6a ,busi;s """"""""""""" #ff ,rev5ue ,f ! ,prosecu;n ( ,,sr&,,ed """""""""""""""""""" #fh ,busi;s ,c>ri$ ,on 0a ,relat$ ,corpor,n """""""""""""""""""" #fi ,5title;t 6,exploit ! ,results #gj ,pay;ts = ,basic or ,appli$ ,rese>* """""""""""""""""""""""" #gb ,assi/.e = ,,sr&,,ed """"""""""""" #gc ,receipt & ,repay;t ( ,assi/.e #gc ,gov]n;t & ,non-,gov]n;t ,assi/.e """"""""""""""""""""" #gd ,sup]-,all[.e ,b5efit ,am.t """" #gf ,e6ect ( ,9ve/;t ,tax ,cr$it """"" #gh ,exp5ditures ,ren\nc$ =! ,purposes ( ,"p ,,viii ,tax """" #hj ,acquisi;n ( ,3trol """""""""""""" #ha ,,sr&,,ed ,\tside ,canada """""""""" #hb ,g5]al """"""""""""""""""""""""""" #hb ;iv ,9dex ,=eign ,"w 9 ,support ( ,,sr&,,ed """""""""""""""""""""" #hc ,exp5ditures = ,,sr&,,ed ,c>ri$ ,on ,\tside ,canada """""""""""" #hf ,recapture ( ,,sr&,,ed ,all[.e """"" #hg ,g5]al """"""""""""""""""""""""""" #hg ,rese>* ,prop]ty """"""""""""""""" #hi ,9ve/;t ,tax ,cr$it """""""""""""""" #hi ,g5]al """"""""""""""""""""""""""" #hi ,9ve/;t ,tax ,cr$it ,calcul,n """" #ij ,g5]al """"""""""""""""""""""""" #ij ,specifi$ ,p]c5tage """""""""""" #if ,,sr&,,ed ,qualifi$ ,exp5diture ,pool """""""""""" #ig ,qualifi$ ,exp5ditures """"""""" #ih ,g5]al """"""""""""""""""""""" #ih ,prescrib$ proxy am.t """"""" #ajj ,%>$-use-equip;t """""""""""" #ajf ,exclu.ns """"""""""""""""""" #aaa ,exp5ditures 9curr$ 9 ! c\rse ( e>n+ exempt 9come #abh ,prop]ty availa# = use """""" #abh ;v ,9dex ,gov]n;t ,assi/.e1 ,non- ,gov]n;t ,assi/.e & ,3tract ,pay;ts """"""""""""""""""""" #acj ,g5]al """""""""""""""""""""" #acj ,3tract pay;t """"""""""""""" #acg ,repay;t ( ,assi/.e """"""""""" #aci ,a4i;nal ,am.t = ,c]ta9 ,corpor,ns """""""""""""""""" #ada ,g5]al """""""""""""""""""""" #ada ,exp5diture limit """"""""""" #add ,%ort tax,n ye> """"""""""""" #adg ,repay;ts ( assi/.e """"""""" #adi ,acquisi;n ( ,3trol """"""""""""" #aej ,refunda# ,9ve/;t ,tax ,cr$its "" #aea ,g5]al """""""""""""""""""""""" #aea ,qualify+ ,corpor,n & ,exclud$ ,corpor,n """"""""""""""""""" #aed ,reduc;n ( ,availa# ,9ve/;t ,tax ,cr$its """""""""""""""" #aeg ,amalgam,n ,& ,w9d+-,up """"""""""" #aeg ,3t9u,n ( ,pr$ecessor ,corpor,ns #aeg ,capital ,co/ ( ,rese>* ,prop]ty #aeh ;vi ,9dex ,availabil;y ( ,9ve/;t ,tax ,cr$its """"""""""""""""""""""" #aei ,"pn]%ips """"""""""""""""""""""""" #afa ,,sr&,,ed ,exp5ditures """""""""" #afa ,alloc,n ( ,9ve/;t ,tax ,cr$its #afb ,app5dix--,li/ ( ,c]ta9 8,approv$0 ,5tities = ,,sr&,,ed ,purposes "" #agj ,bullet9 ,revi.ns """"""""""""""""" #agd ;vii ,canada ,cu/oms #a & ,rev5ue ,ag5cy ,9t]pret,n ,bullet9 ,numb]3 ,,it-#aea;,r#e 7,3solidat$7 ,date3 ,see ,bullet9 ,revi.ns ,sec;n ,subject3 ,9come ,tax ,act--,sci5tific ,rese>* ,& ,exp]i;tal ,develop;t ,exp5ditures ,ref];e3 ,sec;n #cg 7al sec;ns #ac1 #cg.a1 #hg1 #if1 #aaj1 #aaj.a1 #aah.a1 #abe1 #abg1 #abg.a1 #adi1 & #aid2 subsec;ns #aa7#b71 #ah7#i71 #hh7#a71 #aaa7#a71 #bdh7#a71 & #bdi7#d72 p>agraphs #ab7#a77;v71 #ab7#a77;x71 & #bea7#e77b7 (! ,9come ,tax ,act 7! 8,act072 & sec;ns #bijj1 #bija1 #bijb1 #bijc1 & #dfjf1 & p>agraph #aajb7#a77d7 (! ,9come ,tax ,regul,ns 7! 8,regul,ns077 ,late/ revi.n3 ! ,app5dix ,at ! ,canada ,cu/oms & ,rev5ue ,ag5cy 7,,ccra71 we issue 9come tax #a ,,it-#aea;,r#e-;,c a#a 9t]pret,n bullet9s 7,,it's7 9 ord] 6provide te*nical 9t]pret,ns & posi;ns reg>d+ c]ta9 provi.ns 3ta9$ 9 9come tax law4 ,due 6_! te*nical nature1 ,,it's >e us$ prim>ily 0\r /aff1 tax speciali/s1 & o!r 9dividuals :o h an 9t]e/ 9 tax matt]s4 ,= ^? r1d]s :o pref] a less te*nical explan,n (! law1 we (f] o!r public,ns1 s* z tax guides & pamphlets4 ,:ile ! -;ts 9 a "picul> p>agraph 9 an ,,it may relate 6provi.ns (! law 9 =ce at ! "t !y 7 made1 s* -;ts >e n a sub/itute =! law4 ,! r1d] %d1 "!=e1 3sid] s* -;ts 9 li tax,n ye> 2+ 3sid]$1 tak+ 96a3.t ! e6ect ( any relevant am5d;ts 6^? provi.ns or relevant c\rt deci.ns o3urr+ af ! date on : ! -;ts 7 made4 ,subject 6! abv1 an 9t]pret,n or posi;n 3ta9$ 9 an ,,it g5],y applies z (! date on : x 0 publi%$1 un.s o!rwise specifi$4 ,if "! is a subsequ5t *ange 9 t 9t]pret,n or posi;n &! *ange is #b ,,it-#aea;,r#e-;,c b#a b5eficial 6taxpay]s1 x is usu,y e6ective = future assess;ts & reassess;ts4 ,if1 on ! o!r h&1 ! *ange is n fav\ra# 6taxpay]s1 x w norm,y 2 e6ective =! curr5t & subsequ5t tax,n ye>s or = transac;ns 5t]$ 96af ! date on : ! *ange is publi%$4 ,if y h any -;ts reg>d+ matt]s 4cuss$ 9 an ,,it1 pl1se s5d !m to3 ,manag]1 ,te*nical ,public,ns & ,projects ,sec;n ,9come ,tax ,rul+s ,directorate ,policy & ,legisl,n ,bran* ,canada ,cu/oms & ,rev5ue ,ag5cy ,ottawa ,,on ,k#a;,a #j;,l#e ,mo/ ( \r public,ns >e availa# on \r ,web site at3 _+www.ccra.gc.ca_: ,? v].n is only availa# electronic,y4 #c ,3t5ts c#a ,applic,n ,summ>y ,4cus.n & ,9t]pret,n ,9troduc;n ,def9i;n ( ,sci5tific ,rese>* & ,exp]i;tal ,develop;t 7p>agraphs #a-b7 ,g5]al ,4cus.n ( ,3di;ns 6,deduct 7p>agraph #c7 ,tax,n ,ye> 7p>agraph #d7 ,g5]al ,require;ts ,c>ry+ ,on a ,busi;s 7p>agraph #e7 ,fil+ ,require;t 7p>agraph #f7 ,pool ( ,deducti# ,exp5ditures = ,,sr&,,ed ,c>ri$ ,on ,9 ,canada ,calcul,n ( ,pool ( ,deducti# ,,sr&,,ed ,exp5ditures 7p>agraph #g7 ,exp5ditures (a ,curr5t &(a ,capital ,nature = ,,sr&,,ed ,c>ri$ ,on 9 ,canada ,g5]al ,ov]view 7p>agraph #h7 #d ,3t5ts d#a ,classific,n ( exp5ditures 7p>agraph #i7 ,tim+ ( exp5ditures 7p>agraph #aj7 ,excep;ns ,remun],n = specifi$ employees 7p>agraph #aa7 ,build+s 7p>agraph #ab7 ,pay;ts =! use (1 or ! "r 6use1 a build+ & pay;ts 5abl+ ! recipi5t 6acquire a build+ or l1sehold 9t]e/ 7p>agraph #ac7 ,exp5ditures 6acquire "rs >is+ \ ( ,,sr&,,ed 7p>agraph #ad7 ,don,ns z ,,sr&,,ed 7p>agraph #ae7 ,projects result+ 9 ! acquisi;n ( prop]ty 7p>agraph #af7 ,exp5ditures (a ,capital ,nature on1 or 9 ,respect (1 ,,sr&,,ed ,g5]al 7p>agraph #ag7 ,exp5ditures (a curr5t nature on1 or 9 respect (1 ,,sr&,,ed3 tradi;nal me?od #e ,3t5ts e#a ,g5]al 7p>agraph #ah7 --------------------------------------#b ,exp5ditures directly attributa# 6,,sr&,,ed 7p>agraphs #ai-ba7 ,9t]e/ exp5se 7p>agraph #bb7 ,exp5ditures (a curr5t nature on1 or 9 respect (1 ,,sr&,,ed3 proxy me?od ,g5]al 7p>agraph #bc7 8,all or sub/anti,y all0 & 8prim>ily0 7p>agraph #bd7 ,g5]al purpose (fice equip;t or furniture 7p>agraph #be7 ,sal>y & wages 7p>agraph #bf7 ,employees directly 5gag$ 9 ! prosecu;n ( ,,sr&,,ed 7p>agraph #bg7 ,exp5ditures (a ,capital ,nature on1 or 9 ,respect (1 ,,sr&,,ed ,g5]al 7p>agraph #bh7 ,sep>ate prescrib$ class 7p>agraph #bi7 #f ,3t5ts a#b ,exp5ditures (a capital nature on1 or 9 respect (1 ,,sr&,,ed 7p>agraphs #cj-ca7 ,pay;ts 6,be ,us$ = ,,sr&,,ed ,g5]al 7p>agraph #cb7 ,approval ( ,m9i/] 7p>agraph #cc7 ,relat$ 6a ,busi;s 7p>agraph #cd7 ,rev5ue ,f ! ,prosecu;n ( ,,sr&,,ed 7p>agraph #ce7 ,busi;s ,c>ri$ ,on 0a ,relat$ ,corpor,n 7p>agraph #cf7 ,5title;t 6,exploit ! ,results 7p>agraph #cg7 ,pay;ts = ,basic or ,appli$ ,rese>* 7p>agraph #ch7 ,assi/.e = ,,sr&,,ed ,receipt & ,repay;t ( ,assi/.e 7p>agraph #ci7 ,gov]n;t & ,non-,gov]n;t ,assi/.e 7p>agraph #dj7 ,sup]-,all[.e ,b5efit ,am.t 7p>agraph #da7 ,e6ect ( ,9ve/;t ,tax ,cr$it 7p>agraph #db7 #g ,3t5ts b#b ,exp5ditures ,ren\nc$ =! ,purposes ( ,"p ,,viii ,tax 7p>agraph #dc7 ,acquisi;n ( ,3trol 7p>agraph #dd7 ,,sr&,,ed ,\tside ,canada ,g5]al 7p>agraph #de7 ,=eign ,"w 9 ,support ( ,,sr&,,ed 7p>agraph #df7 ,exp5ditures = ,,sr&,,ed ,c>ri$ ,on ,\tside ,canada 7p>agraph #dg7 ,recapture ,( ,,sr&,,ed ,all[.e ,g5]al 7p>agraphs #dh-di7 ,rese>* ,prop]ty 7p>agraph #ej7 ,9ve/;t ,tax ,cr$it ,g5]al 7p>agraph #ea7 ,9ve/;t ,tax ,cr$it ,calcul,n ,g5]al 7p>agraph #eb7 ,specifi$ ,p]c5tage 7p>agraph #ec7 ,,sr&,,ed ,qualifi$ ,exp5diture ,pool 7p>agraph #ed7 ,qualifi$ ,exp5ditures ,g5]al 7p>agraph #ee7 ,prescrib$ proxy am.t ,g5]al 7p>agraph #ef7 #h ,3t5ts c#b ,sal>y base 7p>agraph #eg7 ,specifi$ employees 7p>agraph #eh7 ,specifi$ employees employ$ 0an associat$ corpor,n 7p>agraph #ei7 ,ov]all cap 7p>agraph #fj7 ,%>$-use-equip;t ,g5]al 7p>agraph #fa7 ,f/ & second t]m %>$-use- equip;t 7p>agraph #fb7 ,prescrib$ deprecia# prop]ty 7p>agraph #fc7 ,exclu.ns ,exp5ditures ren\nc$ or n fil$ on prescrib$ =m 7p>agraph #fd7 ,exp5ditures = ,,sr&,,ed 0non- >m's l5g? p]=m] 7p>agraph #fe7 ,non-taxa# suppli] 7p>agraph #ff7 #i ,3t5ts d#b ,prescrib$ exp5ditures (a curr5t nature 7p>agraphs #fg-fh7 ,sole-purpose ,,sr&,,ed p]=m] 7p>agraphs #fi-ga7 ,prescrib$ exp5ditures (a capital nature 7p>agraph #gb7 ,o!r prescrib$ exp5ditures 7p>agraphs #gc-gd7 ,exp5ditures 9curr$ 9 ! c\rse ( e>n+ exempt 9come 7p>agraph #ge7 ,prop]ty availa# = use 7p>agraph #gf7 ,gov]n;t ,assi/.e1 ,non-,gov]n;t ,assi/.e & ,3tract ,pay;ts ,g5]al 7p>agraph #gg7 ,3tract pay;t 7p>agraph #gh7 ,repay;t ( ,assi/.e 7p>agraph #gi7 ,a4i;nal ,am.t = ,c]ta9 ,corpor,ns ,g5]al 7p>agraph #hj7 ,exp5diture limit 7p>agraph #ha7 #aj ,3t5ts e#b ,%ort tax,n ye> 7p>agraph #hb7 ,repay;ts ( assi/.e 7p>agraph #hc7 ,acquisi;n ( ,3trol 7p>agraph #hd7 ,refunda# ,9ve/;t ,tax ,cr$its ,g5]al 7p>agraphs #he-hf7 ,qualify+ ,corpor,n & ,exclud$ ,corpor,n 7p>agraph #hg7 ,reduc;n ( ,availa# ,9ve/;t ,tax ,cr$its 7p>agraph #hh7 ,amalgam,n & ,w9d+-,up ,3t9u,n ( ,pr$ecessor ,corpor,ns 7p>agraph #hi7 ,capital ,co/ ( ,rese>* ,prop]ty 7p>agraph #ij7 ,availabil;y ( ,9ve/;t ,tax ,cr$its 7p>agraph #ia7 ,"pn]%ips ,,sr&,,ed ,exp5ditures 7p>agraphs #ib-ic7 ,alloc,n ( ,9ve/;t ,tax ,cr$its 7p>agraphs #id-ig7 #aa ,3t5ts f#b ,app5dix--,li/ ( ,c]ta9 8,approv$0 ,5tities ,= ,,sr&,,ed ,purposes ,bullet9 ,revi.ns --------------------------------------#c ,applic,n ,? bullet9 c.els ,9t]pret,n ,bullet9 ,,it-#aea;,r#c dat$ ,june #bd1 #aihh4 ,! -;ts 9 ? bullet9 g5],y apply 6exp5ditures on sci5tific rese>* & exp]i;tal develop;t 9curr$ 9 tax,n ye>s 5d+ af ,decemb] #b1 #aiib4 ,,it-#aea;,r#d w 3t9ue 6apply1 subject 6c]ta9 transi;nal provi.ns1 6^? exp5ditures 9curr$ 9 tax,n ye>s 5d+ 2f t "t & af ,decemb] #ae1 #aihg4 ,summ>y ,! ,9come ,tax ,act 3ta9s v>i\s tax 9c5tives = taxpay]s p]=m+ sci5tific rese>* & exp]i;tal develop;t 7,,sr&,,ed74 ,^! 9c5tives >e an 9tegral "p (! f$]al gov]n;t's ef=ts #ab ,summ>y a#c 6/imulate 9du/rial rese>* & develop;t4 ,? bullet9 \tl9es ! 9c5tives t >e availa# & expla9s : exp5ditures qualify =! 9c5tives & :o is eligi# 6rcv !m4 ,specific,y1 ? bullet9 4cusses ! me*anism 0: exp5ditures (a curr5t & capital nature on ,,sr&,,ed c>ri$ on 9 ,canada may 2 pool$ & deduct$ 9 calculat+ ! 9come f a busi;s c>ri$ on 0a taxpay] 9 ! ye> ! exp5diture is made or 9 any subsequ5t ye>4 ,x d1ls )! provi.ns t may re/rict a corpor,n's abil;y 6claim any por;n (! pool ( exp5ditures on ,,sr&,,ed foll[+ an acquisi;n (! corpor,n's 3trol4 ,! deductibil;y ( exp5ditures = ,,sr&,,ed c>ri$ on \tside ,canada is al a4ress$4 ,! bullet9 describes ! 9ve/;t tax cr$it provi.ns (! ,act t all[ ,,sr&,,ed claimants 6reduce _! ,"p ;,i tax paya# & 4cusses ! exp5ditures on ,,sr&,,ed c>ri$ on 9 ,canada t qualify = an 9ve/;t tax cr$it4 #ac ,summ>y b#c ,! bullet9 al expla9s ! g5]al basis ( calculat+ ! am.t ( 9ve/;t tax cr$its4 ,x 4cusses ! 5h.ed 9ve/;t tax cr$it availa# 6c]ta9 ,canadian-3troll$ private corpor,ns 7,,ccpc's7 = "s ( _! qualifi$ exp5ditures on ,,sr&,,ed & x 4cusses ! require;ts a ,,ccpc m/ meet 6qualify =! 5h.ed 9ve/;t tax cr$it4 ,! bullet9 a4resses ! me*anism 0: c]ta9 taxpay]s may obta9 a "pial refund (! unus$ por;n (! 9ve/;t tax cr$its e>n$ dur+ ! ye> &! 3di;ns "u : c]ta9 ,,ccpc's may 2 refund$ ! full am.t (! unus$ por;n (! curr5t ye>'s 9ve/;t tax cr$it = curr5t exp5ditures on ,,sr&,,ed4 ,f9,y1 ! bullet9 a4resses ! 3sequ;es an amalgam,n or a w9d+-up may h on ! ,,sr&,,ed p]=m]'s pool ( deducti# ,,sr&,,ed exp5ditures &! am.t ( 9ve/;t tax cr$its4 ,x 4cusses ! "picul> 3sequ;es 6a "pn]%ip 9curr+ ,,sr&,,ed exp5ditures & e>n+ 9ve/;t tax cr$its =! qualify+ ,,sr&,,ed exp5ditures4 #ad ,4cus.n & ,9t]pret,n c#c ,9troduc;n ,def9i;n ( ,sci5tific ,rese>* & ,exp]i;tal ,develop;t #a4 ,g5],y1 = "w p]=m$ af ,febru>y #bg1 #aiie1 =! purposes (! ,act1 ,,sr&,,ed is def9$ 9 subsec;n #bdh7#a74 ,"u ? def9i;n1 ,,sr&,,ed m1ns sy/ematic 9ve/ig,n or se>* c>ri$ \ 9 a field ( sci;e or te*nology 0m1ns ( exp]i;t or analysis4 ,x m/ 2 7a7 basic rese>*1 "nly1 "w "utak5 =! adv.e;t ( sci5tific k )\t a specific practical applic,n 9 view2 7b7 appli$ rese>*1 "nly1 "w "utak5 =! adv.e;t ( sci5tific k )a specific practical applic,n 9 view2 or 7c7 exp]i;tal develop;t1 "nly1 "w "utak5 =! purposes ( a*iev+ te*nological adv.e;t =! purpose ( cr1t+ new1 or improv+ exi/+1 mat]ials1 devices1 products or #ae ,9troduc;n d#c processes1 9clud+ 9cre;tal improve;ts "!to4 ,"u p>agraph 7d7 (! def9i;n ( ,,sr&,,ed 9 subsec;n #bdh7#a71 ,,sr&,,ed al 9cludes "w (a taxpay] t is -m5surate )! ne$s & directly 9 support ( "w describ$ 9 7a71 7b7 & 7c7 t is "utak5 9 ,canada by1 or on 2half (1 ! taxpay]4 ,h["e1 ! def9i;n ( ,,sr&,,ed excludes "w =! foll[+3 --m>ket rese>* or sales promo;n2 --qual;y 3trol or r\t9e te/+ ( mat]ials1 devices1 products or processes2 --rese>* 9 ! social sci;es or ! humanities2 --prospect+1 explor+ or drill+ =1 or produc+ m9]als1 petroleum or natural gas2 --! -m]cial produc;n (a new or improv$ mat]ial1 device or product1 or ! -m]cial use (a new or improv$ process2 --/yle *anges2 or #af ,9troduc;n e#c --r\t9e data collec;n4 ,applica# 6tax,n ye>s t 2g9 af #aiie1 subsec;n #cg7#ac7 deems "w t a taxpay] p]=ms =a p]son or "pn]%ip 6be ,,sr&,,ed =! purposes ( sec;ns #cg1 #abg & #abg.a if --! "w wd h be5 ,,sr&,,ed if ! p]son or "pn]%ip _h p]=m$ x1 & --! taxpay] &! p]son or "pn]%ip 7 n d1l+ at >m's l5g? at ! "t ! taxpay] p]=m$ ! "w4 --------------------------------------#d #b4 ,te*nical guidel9es t reflect ! ,canada ,cu/oms & ,rev5ue ,ag5cy's 9t]pret,n ( ^! provi.ns (! ,act & ,regul,ns >e 4cuss$ 9 ! curr5t v].n ( ,9=m,n ,circul>s #hf-d1 ,sci5tific ,rese>* & ,exp]i;tal ,develop;t1 & #ig-a1 ,sci5tific ,rese>* & ,exp]i;tal ,develop;t--,adm9i/rative ,guidel9es = ,s(tw>e ,develop;t4 ,! ,bro*ure ,t#djeb1 ,an ,9troduc;n 6! ,sci5tific ,rese>* & ,exp]i;tal ,develop;t ,program1 provides a g5]al #ag ,9troduc;n a#d ov]view on h[ ! 9c5tive program "ws &! fil+ require;ts4 ,o!r 9=m,n on ,,sr&,,ed1 9clud+ applic,n policies issu$ 0! ,,ccra1 >e availa# on \r ,web site at _+www.ccra.gc.ca/sred_:4 ,g5]al ,4cus.n ( ,3di;ns 6,deduct #c4 ,g5],y1 sec;n #cg provides t a taxpay] c>ry+ on a busi;s 9 ,canada 9 a tax,n ye> may deduct1 9 calculat+ 9come f ! busi;s =! ye>1 exp5ditures (a curr5t &(a capital nature = ,,sr&,,ed c>ri$ on 9 ,canada t relate 6a busi;s (! taxpay]4 ,a taxpay] :o has made ,,sr&,,ed exp5ditures 9 a ye> 9 respect (a "picul> busi;s may1 6! ext5t t ^? exp5ditures h n be5 deduct$ 9 ! ye>1 deduct ^? exp5ditures 9 any subsequ5t ye> 9 calculat+ 9come f t or any o!r busi;s c>ri$ on 0! taxpay] 9 ! subsequ5t ye> 7subject 6c]ta9 limits1 z 4cuss$ 9 p>agraph #dd1 if ! #ah ,9troduc;n b#d taxpay] is a corpor,n ^: 3trol has be5 acquir$ 0a p]son or gr\p ( p]sons74 ,9 a4i;n1 a taxpay] may deduct an exp5diture (a curr5t nature 9curr$ 9 c>ry+ on ,,sr&,,ed \tside ,canada 9 ! ye> ! exp5diture 0 made 7see p>agraphs #de-dg74 ,tax,n ,ye> #d4 ,ref];es 9 subsec;n #cg7#a7 6a 8ye>0 >e g5],y ref];es 6a tax,n ye>4 ,h["e1 9 ! case ( an 9dividual 7o!r ?an a te/a;t>y tru/7 :o c>ries on an un9corporat$ busi;s : has a fiscal ye>-5d o!r ?an ,decemb] #ca1 subsec;n #aa7#b7 provides t ! ref];e 6a 8ye>0 relates 6a fiscal p]iod (! busi;s 5d+ 9 ! ye>4 #ai ,g5]al ,require;ts c#d ,c>ry+ ,on a ,busi;s #e4 ,9 ord] 6be eligi# 6claim a deduc;n "u subsec;n #cg7#a7 9 a tax,n ye>1 a taxpay] m/ c>ry on a busi;s 9 ,canada 9 ! ye>4 ,:e!r a taxpay] is c>ry+ on a busi;s is a "q ( fact t m/ 2 det]m9$ on a case-by-case basis4 ,9 ! case (a />t-up op],n1 ref] 6! curr5t v].n ( ,,it-#cfd1 ,-m;e;t ( ,busi;s ,op],ns1 : sets \ factors 63sid] 9 det]m9+ :e!r a taxpay] has 2gun 6c>ry on a busi;s 9 ,canada4 ,fil+ ,require;t #f4 ,9 ord] 6be eligi# 6claim a deduc;n "u subsec;n #cg7#a7 9 a tax,n ye> = an exp5diture on1 or 9 respect (1 ,,sr&,,ed1 a taxpay] m/ al file a prescrib$ =m 7,=m ,t#ffa1 ,claim = ,sci5tific ,rese>* & ,exp]i;tal ,develop;t 7,,sr&,,ed7 9 #bj ,g5]al require;ts d#d ,canada1 or ,=m ,t#ffe1 ,simplifi$ ,claim = ,sci5tific ,rese>* & ,exp]i;tal ,develop;t 7,,sr&,,ed7 9 ,canada7 3ta9+ prescrib$ 9=m,n 9 respect (! exp5diture4 ,! ,guide ,t#djhh1 ,claim+ ,sci5tific ,rese>* & ,exp]i;tal ,develop;t1 ,guide 6,=m ,t#ffa1 provides detail$ l9e-by-l9e explan,ns on h[ 6-plete ! l9es 9 ,=m ,t#ffa4 ,9/ruc;ns on -plet+ ,=m ,t#ffe >e atta*$ 6t =m4 ,= tax,n ye>s t 2g9 2f #aiif1 ! prescrib$ =m m/ 2 fil$ on1 or 2f1 ! fil+-due date =! foll[+ tax,n ye>4 ,h["e1 "u subsec;n #adi7#g71 ! prescrib$ =m m/ 2 fil$ 0any corpor,n exempt f ,"p ;,i tax "u p>agraph #adi7#a77j7 on1 or 2f1 xs fil+-due date = all tax,n ye>s t 5d af ,febru>y #bg1 #aiie4 ,subsec;n #adi7#g.a7 provides a p5alty = ^? corpor,ns if !y fail 6file ! prescrib$ =m on "t4 ,! fil+-due date =a "picul> tax,n #ba ,g5]al require;ts e#d ye> is ! date ! taxpay]'s return ( 9come "u ,"p ;,i =! ye> is1 or wd be1 requir$ 6be fil$ if any tax 7 paya# "u t ,"p =! ye>4 ,= tax,n ye>s t 2g9 af #aiie1 a taxpay] m/ file =m ,t#ffa on1 or 2f1 ! "d t is #ab mon?s af ! taxpay]'s fil+-due date =! ye> 9 : ! exp5diture is 9curr$4 ,un.s a taxpay] id5tifies an exp5diture on a prescrib$ =m fil$ on "t1 subsec;n #cg7#aa7 prev5ts ! taxpay] f deduct+ any am.t "u subsec;n #cg7#a7 9 respect (! exp5diture4 ,9 a4i;n1 subsec;n #cg7#aa7 e6ectively requires a taxpay] 6id5tify1 on ! prescrib$ =m =a "picul> tax,n ye>1 an exp5se 9 respect ( unpd wages1 sal>ies or o!r remun],n t wd 2 9curr$ 9 ! ye> if sec;n #gh7#d7 _h n appli$ 6! exp5diture1 9 ord] =! exp5se 6be deducti# "u subsec;n #cg7#a7 9 ! ye> 9 : x w actu,y 2 pd4 ,subsec;n #cg7#aa7 applies 6exp5ditures t wd 2 #bb ,g5]al require;ts f#d 9curr$ 9 tax,n ye>s t 2g9 af #aiie4 ,:51 9 a tax,n ye> t 2g9s 2f #aiif1 an exp5se 9 respect ( unpd wages1 sal>ies or o!r remun],n wd h be5 9curr$ 0a taxpay]1 _h x n be5 =! applic,n ( subsec;n #gh7#d71 ! taxpay] is only requir$ 6id5tify ! exp5se on ! prescrib$ =m (! ye> 9 : x is pd4 ,2f ! #aiig tax,n ye>1 subsec;n #cg7#ab7 elim9ates ! fil+ require;t = an exp5diture reclassifi$ z an exp5diture 9 respect ( ,,sr&,,ed 0! ,m9i/] on an assess;t (! taxpay]'s tax paya# "u ,"p ;,i =! ye>1 or on a det]m9,n t no tax "u ,"p ;,i is paya# =! ye>4 ,h["e1 applica# 6! #aiig & subsequ5t tax,n ye>s1 subsec;n #cg7#ab7 deems an exp5diture 9 respect ( : ! taxpay] has n met ! fil+ require;t 9 subsec;n #cg7#aa7 n 6be an exp5diture on1 or 9 respect (1 ,,sr&,,ed4 #bc ,pool ( ,deducti# ,exp5ditures #e = ,,sr&,,ed ,c>ri$ on 9 ,canada ,calcul,n ( ,pool ( ,deducti# ,,sr&,,ed ,exp5ditures #g4 ,subsec;n #cg7#a7 provides =! calcul,n (a taxpay]'s pool ( deducti# exp5ditures = ,,sr&,,ed c>ri$ on 9 ,canada4 ,9 g5]al1 ! pool ( deducti# ,,sr&,,ed exp5ditures is 9cr1s$ 0! foll[+3 --! am.t ( exp5ditures (a curr5t &(a capital nature on ,,sr&,,ed c>ri$ on 9 ,canada2 --c]ta9 pay;ts 6corpor,ns & approv$ 5tities = ,,sr&,,ed2 --! am.t ( repay;ts ( gov]n;t & non- gov]n;t assi/.e t _h previ\sly reduc$ ! pool ( deducti# ,,sr&,,ed exp5ditures2 & --! am.ts t h be5 9clud$ 9 ! taxpay]'s 9come =a previ\s ye> "u p>agraph #ab7#a77;v74 #bd ,pool ( deducti# a#e ,g5],y1 ! taxpay]'s pool ( deducti# ,,sr&,,ed exp5ditures is decr1s$ 0! foll[+3 --! am.t ( gov]n;t & non-gov]n;t assi/.e t ! taxpay] has rcvd1 is 5titl$ 6rcv or c r1sonably 2 expect$ 6rcv = ,,sr&,,ed exp5ditures 9clud$ 9 ! pool 7see p>agraph #ci72 --xs 8sup]-all[.e b5efit am.t0 z def9$ 9 subsec;n #abg7#i7 =! ye> or = prec$+ tax,n ye>s 9 respect (a prov9ce 7see p>agraph #da72 --am.ts claim$ z 9ve/;t tax cr$its 9 a prec$+ ye> t may r1sonably 2 attribut$ 6a prescrib$ proxy am.t 7see p>agraph #ef71 6qualifi$ ,,sr&,,ed exp5ditures (a curr5t nature or 6am.ts 9clud$ at ! 5d (a prec$+ tax,n ye> 9 ! taxpay]'s ,,sr&,,ed qualifi$ exp5diture pool 2c ( p>agraph #abg7#ac77e7 7see p>agraph #ed72 #be ,pool ( deducti# b#e --am.ts deduct$ "u subsec;n #cg7#a7 9 previ\s ye>s 7except am.ts describ$ 9 subsec;n #cg7#f7 z 4cuss$ 9 p>agraph #cf72 & --am.ts ! taxpay] has deduct$ "u sec;n #fa.c 9 prec$+ ye>s 6! ext5t ^! am.ts did n exce$ ! bal.e (! pool ( deducti# ,,sr&,,ed exp5ditures 9 ! ye> 9 : ! am.t 0 claim$4 ,if ! pool ( deducti# ,,sr&,,ed exp5ditures has a positive bal.e at ! 5d (! ye>1 ! am.t a taxpay] may deduct = t ye> "u subsec;n #cg7#a7 _c 2 m ?an ! bal.e 9 ! pool4 ,if ! pool ( deducti# ,,sr&,,ed exp5ditures has a negative bal.e at ! 5d (a ye>1 p>agraph #ab7#a77;v7 requires ! negative bal.e 6be 9clud$ 9 ! taxpay]'s 9come =! ye>4 ,v>i\s o!r transac;ns1 s* z claims = ,"p ,,viii tax & acquisi;ns ( 3trol1 z describ$ 9 p>agraphs #dc & #dd1 may al 9cr1se or decr1se ! taxpay]'s pool ( deducti# ,,sr&,,ed exp5ditures4 #bf ,pool ( deducti# c#e ,= #aiih & subsequ5t tax,n ye>s1 p>agraph #cg7#a77c4#b7 9cr1ses a taxpay]'s pool ( deducti# ,,sr&,,ed exp5ditures 0! total ( all am.ts a4$ 2c ( subsec;n #abg7#bg71 7#bi7 or 7#cd7 6! taxpay]'s tax paya# "u ,"p ;,i = any prec$+ tax,n ye> 7see p>agraph #eb74 ,9 ! case (a "pn]%ip1 p>agraph #cg7#a77c4#c7 9cr1ses ! "pn]%ip's pool ( deducti# ,,sr&,,ed exp5ditures 0! total ( all am.ts ea* ( : 0 an am.t a4$ 6! tax o!rwise paya# (a memb] (! "pn]%ip "u subsec;n #abg7#cj7 =a prec$+ fiscal p]iod (! "pn]%ip 7see p>agraph #id74 #bg ,exp5ditures (a ,curr5t &(a d#e ,capital ,nature = ,,sr&,,ed ,c>ri$ ,on 9 ,canada ,g5]al ,ov]view #h4 ,exp5ditures (a curr5t nature on ,,sr&,,ed c>ri$ on 9 ,canada directly "utak5 by1 or on 2half (1 a taxpay]1 or exp5ditures (a curr5t nature t >e pay;ts made af #aiie 6,canadian resid5t corpor,ns 6be us$ = ,,sr&,,ed c>ri$ on 9 ,canada1 may 2 9clud$ 9 ! pool ( deducti# ,,sr&,,ed exp5ditures "u subp>agraphs #cg7#a77a77;i7 & 7i4#a74 ,exp5ditures (a curr5t nature t >e pay;ts 6corpor,ns & approv$ 5tities = ,,sr&,,ed may 2 9clud$ 9 ! pool ( deducti# ,,sr&,,ed exp5ditures "u subp>agraphs #cg7#a77a77;ii7 & 7;iii74 ,! 3di;ns p]ta9+ 6! 9clu.n ( ^! pay;ts 9 ! pool ( deducti# ,,sr&,,ed exp5ditures >e 4cuss$ #bh ,pool ( deducti# e#e 9 p>agraphs #cb & #ch4 ,exp5ditures (a capital nature on ,,sr&,,ed c>ri$ on 9 ,canada may 2 9clud$ 9 ! pool ( deducti# ,,sr&,,ed exp5ditures "u p>agraph #cg7#a77b74 ,subp>agraphs #cg7#a77a77;i7 & #cg7#a77b77;i7 specify t exp5ditures (a curr5t & capital nature made 0a taxpay] on ,,sr&,,ed t is directly "utak5 by1 or on 2half (1 ! taxpay]1 m/ 2 relat$ 6a busi;s (! taxpay] 7see p>agraph #cd74 ,simil>ly1 subp>agraph #cg7#a77a77i4#a7 provides t pay;ts 6,canadian resid5t corpor,ns >e 6be us$ = ,,sr&,,ed t is relat$ 6! busi;s (! taxpay]4 ,9 a4i;n1 =a pay;t 6be 9clud$ 9 ! pool ( deducti# ,,sr&,,ed exp5ditures "u subp>agraph #cg7#a77a77i4#a71 ! taxpay] mak+ ! pay;t m/ 2 5titl$ 6exploit ! results (! ,,sr&,,ed 7see p>agraph #cg74 #bi ,classific,n ( exp5ditures f#e #i4 ,:ile all exp5ditures on ,,sr&,,ed may 2 3sid]$ exp5ditures (a capital nature1 =! purposes ( sec;n #cg1 exp5ditures (a curr5t nature on ,,sr&,,ed >e 3sid]$ 6be ^? exp5ditures t d n result 9 ! acquisi;n ( l&1 a l1sehold 9t]e/ 9 l&1 or prop]ty t wd o!rwise 2 deprecia# prop]ty 6! taxpay]4 ,"u p>agraph #cg7#a77b71 exp5ditures (a capital nature >e only ^? exp5ditures t result 9 ! acquisi;n ( prop]ty t wd 2 ! taxpay]'s deprecia# prop]ty 7o!r ?an prop]ty ref]r$ 6in p>agraph #ab7 if sec;n #cg did n apply4 ,! -;ts 9 ! curr5t v].n ( ,,it-#abh1 --------------------------------------#f ,capital ,co/ ,all[.e--,deprecia# ,prop]ty1 may 2 ( assi/.e 9 det]m9+ :e!r a "picul> prop]ty is deprecia# prop]ty4 #cj ,tim+ ( exp5ditures a#f #aj4 ,subsec;n #cg7#a.b7 deems a ,,sr&,,ed exp5diture (a capital nature n 6h be5 made until ! prop]ty acquir$ )! exp5diture 2comes 8availa# = use0 0! taxpay] z det]m9$ "u subsec;ns #ac7#bf7 6#ac7#cb74 ,6det]m9e :5 curr5t exp5ditures qualify = 9clu.n 9 ! pool ( deducti# ,,sr&,,ed exp5ditures1 ! foll[+ guidel9es apply4 ,:5 a taxpay] c>ries on ,,sr&,,ed 9 ,canada )! taxpay]'s [n /aff1 or 3tracts ) ano!r p]son 6h s* ,,sr&,,ed directly "utak5 on ! taxpay]'s 2half1 curr5t exp5ditures fall "u subp>agraph #cg7#a77a77;i7 & normal 8a3rual0 a3.t+ pr9ciples apply4 ,= example1 if a liabil;y is 9curr$ = mat]ials t >e lat] us$ 9 ,,sr&,,ed1 ! co/ ( ^! mat]ials is 3sid]$ 6be an exp5diture on ,,sr&,,ed 9 ! ye> 9 : !y >e 3sum$ 9 a qualify+ activ;y1 ev5 ?\< pay;t = !m is made 9 a di6]5t ye>4 ,al1 :5 an exp5diture relates 6a 3tract = #ca ,pool ( deducti# b#f s]vices 6be p]=m$1 s* an am.t w norm,y 2 9clud$ 9 ! pool ( deducti# ,,sr&,,ed exp5ditures "u subp>agraph #cg7#a77a77;i74 ,:5 ! s]vices >e n p]=m$ 2f ! 5d (! taxpay]'s tax,n ye>1 p>agraph #ah7#i77a7 w apply 6d5y ! deduc;n until ! tax,n ye> 9 : ! s]vices >e actu,y p]=m$4 ,h["e1 2f #aiif1 p>agraph #ah7#i77a7 does n apply 6pay;ts ref]r$ 6in clause #cg7#a77a77;ii77,e7 7see p>agraph #cc7 0r1son (! applic,n ( p>agraph #ah7#i77d74 ,9 a4i;n1 = pay;ts made af #aiie1 z l;g z ! pay] &! payee >e d1l+ ) ea* o!r at >m's l5g? at ! "t (! pay;t1 2c (! applic,n ( p>agraph #ah7#i77d71 p>agraph #ah7#i77a7 does n apply 6any pay;t describ$ 9 subp>agraph #cg7#a77a77;ii7 or 7;iii7 provid$ t ! pay;t _c 2 3sid]$ 6be a pay;t describ$ 9 subp>agraph #cg7#a77a77;i74 ,s9ce ?ird "py pay;ts 6corpor,ns resid5t 9 ,canada >e n 9clud$ 9 subp>agraph #cb ,pool ( deducti# c#f #cg7#a77a77;ii7 af #aiie b 9 subp>agraph #cg7#a77a77i4#a71 z a result (! applic,n ( p>agraph #ah7#i77a71 ! ,,sr&,,ed w h 6be p]=m$ 2f ! am.t ( s* a pay;t c 2 9clud$ 9 ! pay]'s pool ( deducti# ,,sr&,,ed exp5ditures4 ,h["e1 "u p>agraph #ah7#i77e71 =! purposes ( sec;n #cg &! def9i;n ( 8qualifi$ exp5diture0 9 subsec;n #abg7#i71 any por;n ( an exp5diture t is n deducti# 9 a tax,n ye> 2c (! applic,n ( p>agraph #ah7#i77a7 is deem$ n 6be made or 9curr$ 9 ! ye> b made or 9curr$ 9 ! subsequ5t ye> 6: ! exp5diture c r1sonably 2 3sid]$ 6relate4 ,excep;ns ,remun],n = specifi$ employees #aa4 ,"u subsec;n #cg7#i71 an exp5diture on1 or 9 respect (1 ,,sr&,,ed c>ri$ on 9 ,canada does n 9clude a bonus1 #cc ,pool ( deducti# d#f or remun],n bas$ on pr(its1 9 respect (a p]son :o is a 8specifi$ employee0 (! pay]4 ,a 8specifi$ employee0 is def9$ "u subsec;n #bdh7#a7 &1 9 a "picul> ye>1 9cludes an employee :o does n d1l at >m's l5g? )! employ] or :o [ns1 directly or 9directly1 at any "t 9 ! ye>1 #aj@3p or m (! issu$ %>es ( any class (! capital /ock (! employ] or ( any o!r corpor,n relat$ 6! employ]4 ,?us1 = example1 if a corpor,n pays or a3rues a bonus 6an employee :o is xs sole %>ehold] & "!=e a specifi$ employee1 ! bonus is n an exp5diture on1 or 9 respect (1 ,,sr&,,ed4 ,h["e1 a bonus pd or paya# 0! same corpor,n 6an employee :o is n a specifi$ employee (! corpor,n w n 2 prev5t$ 0subsec;n #cg7#i7 f 2+ an exp5diture on1 or 9 respect (1 ,,sr&,,ed4 ,9 a4i;n1 "u subsec;n #cg7#i.a71 ! am.t t a taxpay] c claim z an exp5se on ,,sr&,,ed =a tax,n ye> t 2g9s af ,m>* #e1 #aiif1 = #cd ,pool ( deducti# e#f sal>y or wages (a specifi$ employee1 is subject 6a limit4 ,=! purposes ( clauses #cg7#h77a77;ii77,a7 & 7,b71 s* an exp5se is limit$ 6five "ts ! ,ye>'s ,maximum ,p5.na# ,e>n+s 7,,ympe7 z det]m9$ "u sec;n #ah (! ,canada ,p5.n ,plan prorat$ =! numb] ( "ds on : ! taxpay] is a specifi$ employee dur+ ! ye>4 ,subsec;n #cg7#i.b7 to 7#i.d7 provide rules = det]m9+ ! alloc,n ( sal>y & wages (a specifi$ employee ( two or m associat$ corpor,ns4 ,= ^! purposes1 subsec;n #cg7#i.e7 deems 9dividuals relat$ 6a "picul> corpor,n1 c]ta9 "pn]%ips & c]ta9 limit$ "pn]%ips 6be corpor,ns associat$ )! "picul> corpor,n4 ,build+s #ab4 ,g5],y1 af #aihg1 exp5ditures (a capital nature t relate 6! acquisi;n (a build+ 7o!r ?an a prescrib$ special-purpose build+7 9clud+ a #ce ,pool ( deducti# f#f l1sehold 9t]e/ 9 a build+1 d n 3/itute exp5ditures on1 or 9 respect (1 ,,sr&,,ed "u subp>agraph #cg7#h77d77;i74 ,prescrib$ special- purpose build+s >e approv$ 0! ,de"p;t ( ,f9.e on a build+-by-build+ basis4 ,6date1 only "o type ( build+ has be5 prescrib$ z a special-purpose build+ & x is describ$ 9 sec;n #bijc (! ,regul,ns4 ,! -;ts 9 ! curr5t v].n ( ,,it-#gi1 ,capital ,co/ ,all[.e-- ,build+s or ,o!r ,/ructures1 may 2 ( assi/.e 9 4t+ui%+ 2t exp5ditures =! acquisi;n ( build+s & exp5ditures =! acquisi;n ( o!r /ructures4 ,pay;ts =! use (1 or ! "r 6use1 a build+ & pay;ts 5abl+ ! recipi5t 6acquire a build+ or l1sehold 9t]e/ #ac4 ,\tlays & exp5ses made or 9curr$ af #aihg =! use (1 or ! "r 6use1 a build+ 7o!r ?an a prescrib$ special- #cf ,pool ( deducti# g#f purpose build+--see p>agraph #ab7 g5],y d n 3/itute exp5ditures on ,,sr&,,ed "u subp>agraph #cg7#h77d77;ii74 ,h["e1 r5tal exp5ses1 9curr$ 9 a tax,n ye> t 2gan 2f ,m>* #f1 #aiif >e except$ f ? rule if !y 7 9curr$ "u a writt5 l1se agree;t --------------------------------------#g t 0 renew$1 ext5d$ or 5t]$ 962f ,june #ah1 #aihg 0! taxpay] or a p]son ) :om ! taxpay] did n d1l at >m's l5g? at ! "t ! l1se 0 renew$1 ext5d$ or 5t]$ 9to4 ,subp>agraph #cg7#h77d77;iii7 fur!r provides t pay;ts made 0a taxpay] 6an approv$ rese>* 9/itute or approv$ associ,n : does n d1l at >m's l5g? )! taxpay]1 or 6a corpor,n 7o!r ?an a resid5t ,canadian corpor,n t is exempt f ,"p ;,i tax "u p>agraph #adi7#a77j7 & is d1l+ at >m's l5g? )! taxpay]71 d n 3/itute ,,sr&,,ed exp5ditures 6! ext5t t !y may r1sonably 2 3sid]$ 6h be5 made 65a# ! recipi5t 6acquire a build+ or a #cg ,pool ( deducti# a#g l1sehold 9t]e/ 9 a build+ or 6pay an am.t 9 respect (! r5tal exp5se =a build+4 ,a pay;t made 0a taxpay] 6an approv$ univ]s;y1 college or organiz,n does n 3/itute an exp5diture on ,,sr&,,ed 6! ext5t t ! am.t (! pay;t may r1sonably 2 3sid]$ 6h be5 made 65a# ! recipi5t 6acquire a build+1 or a l1sehold 9t]e/ 9 a build+ 9 : ! taxpay] has1 or may r1sonably 2 expect$ 6acquire1 an 9t]e/4 ,exp5ditures 6acquire "rs >is+ \ ( ,,sr&,,ed #ad4 ,subsec;n #cg7#d7 provides t no deduc;n may 2 made "u sec;n #cg 9 respect ( an exp5diture 6acquire "rs in1 or >is+ \ (1 ,,sr&,,ed4 ,z a result1 exp5ditures made 0a taxpay] 6pur*ase1 or 65title ! taxpay] 6use1 ! results (a ,,sr&,,ed program 9 : ! taxpay] did n "picipate may n 2 9clud$ 9 ! pool ( deducti# ,,sr&,,ed #ch ,pool ( deducti# b#g exp5ditures4 ,subsec;n #cg7#d7 w apply 6d5y a deduc;n "u sec;n #cg =a royalty or o!r simil> pay;t = products or processes t w h use 2y ! ,,sr&,,ed /age 7i4e41 : 2come "p (a m>ket$ product74 ,subsec;n #cg7#d7 w g5],y n apply 6d5y a deduc;n = an exp5diture on "s?+ t is m]ely a tool = p]=m+ ,,sr&,,ed4 ,= example1 subsec;n #cg7#d7 w n apply 6d5y a deduc;n = exp5ditures made 6acquire capital prop]ty 7t may result f ! ,,sr&,,ed ef=ts ( o!rs7 requir$ 6support ! taxpay]'s ,,sr&,,ed ef=ts b t w n 2 9corporat$ 96! 5d product1 provid$ ! taxpay] is n acquir+ any "r 6-m]ci,y exploit ! results (! o!r "py's ,,sr&,,ed4 ,exp5ditures made 0a taxpay] 6acquire pat5ts or o!r legal protec;n relat$ 6! results (a ,,sr&,,ed program >e n deducti# "u sec;n #cg reg>d.s ( :e!r ! taxpay] "picipat$ 9 ! program4 #ci ,don,ns z ,,sr&,,ed c#g #ae4 ,:5 an exp5diture t qualifies =a deduc;n "u sec;n #cg is o!rwise deducti# "u sec;n #aaj.a or #aah.a1 subsec;n #cg7#e7 provides t no deduc;n = t exp5diture may 2 made "u sec;n #aaj.a or #aah.a 9 calculat+ ! taxa# 9come (1 or ! tax paya# by1 ! taxpay] = any tax,n ye>4 ,projects result+ 9 ! acquisi;n ( prop]ty #af4 ,c]ta9 projects result 9 ! acquisi;n ( prop]ty t c r1sonably 2 expect$ 6be us$ 9 ! taxpay]'s busi;s or t w 2 sold4 ,projects1 s* z ! develop;t (a cu/om product1 t may 9volve ,,sr&,,ed "w may al 9volve -m]cial produc;n "w t does n 3/itute ,,sr&,,ed "u p>agraph 7;i7 (! def9i;n ( ,,sr&,,ed 9 subsec;n #bdh7#a74 ,6det]m9e ! eligi# exp5ditures on ,,sr&,,ed = s* projects1 ! #dj ,pool ( deducti# d#g ,,sr&,,ed "w &! non-,,sr&,,ed "w %d 2 id5tifi$ &! project co/s allocat$ 2t ^! activities4 ,h["e1 ": a prop]ty is 2+ 3/ruct$ dur+ a "picul> project = xs exp]i;tal or te*nical 3t5t & is n 2+ 3/ruct$ = -m]cial use or sale1 p>agraph 7;i7 (! def9i;n ( ,,sr&,,ed 9 subsec;n #bdh7#a7 is n 3sid]$ 6apply & x is n nec 6allocate ! project co/s 2t ! ,,sr&,,ed &! -m]cial produc;n "w4 ,exp5ditures (a ,curr5t ,nature on1 or 9 ,respect (1 ,,sr&,,ed ,g5]al #ag4 ,subsec;n #cg7#h7 def9es ! expres.n 8exp5ditures on1 or 9 respect (1 ,,sr&,,ed40 ,subp>agraph #cg7#h77a77;i7 def9es ? expres.n :5 x o3urs 9 subsec;n #cg7#b7 & describes ! require;ts t m/ 2 met = exp5ditures on ,,sr&,,ed c>ri$ on \tside #da ,pool ( deducti# e#g ,canada 6be deducti# "u t subsec;n4 ,^! require;ts >e describ$ 9 p>agraph #dg4 ,subp>agraph #cg7#h77a77;ii7 def9es ! expres.n 8exp5ditures on1 or 9 respect (1 ,,sr&,,ed0 :5 x o3urs else": ?an 9 subsec;n #cg7#b74 ,x describes ! require;ts t exp5ditures m/ meet 6be 9clud$ 9 ! pool ( deducti# exp5ditures "u subsec;n #cg7#a7 = ,,sr&,,ed c>ri$ on 9 ,canada4 ,subp>agraph #cg7#h77a77;ii7 provides t exp5ditures (a taxpay] on1 or 9 respect (1 ,,sr&,,ed c>ri$ on 9 ,canada 9clude only ! exp5ditures describ$ "u clause #cg7#h77a77;ii77,a7 7see p>agraph #ah71 except if ! taxpay] elects 6h ! rules 9 clause #cg7#h77a777;ii77,b7 apply 7see p>agraph #bc74 #db ,exp5ditures (a curr5t f#g nature on1 or 9 respect (1 ,,sr&,,ed3 tradi;nal me?od ,g5]al #ah4 ,9 a tax,n ye> = : a taxpay] has n made an elec;n "u clause #cg7#h77a77;ii77,b71 exp5ditures (a curr5t nature on1 or 9 respect (1 ,,sr&,,ed 9clude only exp5ditures describ$3 --"u subclause #cg7#h77a77;ii77,a77;i71 if all or sub/anti,y all (! exp5diture is attributa# 6! prosecu;n1 or 6! provi.n ( premises1 facilities or equip;t =! prosecu;n1 ( ,,sr&,,ed 9 ,canada2 or --"u subclause #cg7#h77a77;ii77,a77;ii71 if ! exp5diture is directly attributa# z det]m9$ 0regul,n 7see p>agraph #ai7 6! prosecu;n1 or 6! provi.n ( premises1 facilities or #dc ,pool ( deducti# g#g equip;t =! prosecu;n1 ( ,,sr&,,ed 9 ,canada4 --------------------------------------#h ,an exp5diture (a curr5t nature t is us$ #ij@3p or m = ,,sr&,,ed purposes is 3sid]$ 6be 8all or sub/anti,y all0 attributa# 6! prosecu;n ( ,,sr&,,ed1 or 6! provi.n ( premises1 facilities or equip;t =! prosecu;n ( ,,sr&,,ed1 z ! case may be4 ,= example1 subject 6! 8specifi$ employee0 rules ( subsec;ns #cg7#i7 to 7#i.e71 ! wages ( an employee hir$ = ,,sr&,,ed purposes >e 3sid]$ all or sub/anti,y all attributa# 6! prosecu;n ( ,,sr&,,ed if #ij@3p or m ( ? employee's "t is devot$ 6! prosecu;n ( ,,sr&,,ed4 ,exp5ditures directly attributa# 6,,sr&,,ed #ai4 ,subsec;n #bijj7#b7 (! ,regul,ns describes ! exp5ditures t >e directly attributa# 6! prosecu;n ( #dd ,pool ( deducti# a#h ,,sr&,,ed =! purposes ( subclause #cg7#h77a77;ii77,a77;ii74 ,p>agraph #bijj7#b77a7 (! ,regul,ns provides t an exp5diture (a curr5t nature is directly attributa# 6! prosecu;n ( ,,sr&,,ed if x is ! co/ ( mat]ials 3sum$ 9 s* prosecu;n4 ,applica# = co/s 9curr$ af ,febru>y #bc1 #aiih1 p>agraph #bijj7#b77a7 (! ,regul,ns provides t an exp5diture (a curr5t nature is directly attributa# 6! prosecu;n ( ,,sr&,,ed if x is ! co/ ( mat]ials 3sum$ or trans=m$ 9 s* prosecu;n4 ,co/s 9curr$ prior 6,febru>y #bd1 #aiih1 = mat]ials trans=m$ b n 3sum$ 9 ! prosecu;n ( ,,sr&,,ed may 2 directly attributa# 6! prosecu;n ( ,,sr&,,ed "u p>agraph #bijj7#b77c7 (! ,regul,ns ": ! crit]ia ( t p>agraph >e met 7see p>agraph #bj71 9 a3ord.e )! deci.n 9 ,3soltex ,9c4 v4 ,! ,que51 #ig ,,dtc #gbd1 ,7#aiig7' #b ,,ctc #bhdf 7,,tcc74 #de ,pool ( deducti# b#h ,p>agraph #bijj7#b77b7 (! ,regul,ns provides t c]ta9 exp5ditures = employee remun],n >e directly attributa# 6! prosecu;n ( ,,sr&,,ed4 ,^! exp5ditures >e ! por;n ( sal>ies or wages 9curr$ = an employee :o directly "utakes1 sup]vises or supports ! prosecu;n ( ,,sr&,,ed 6! ext5t ! am.t 9curr$ c r1sonably 2 3sid]$ 6relate 6s* prosecu;n4 ,h["e1 see p>agraph #aa =! re/ric;n 3c]n+ bonuses1 sal>ies & wages ( specifi$ employees4 #bj4 ,p>agraph #bijj7#b77c7 (! ,regul,ns provides t c]ta9 o!r exp5ditures >e al directly attributa# 6! prosecu;n ( ,,sr&,,ed4 ,^! exp5ditures 9clude any exp5diture1 or por;n "!(1 t is directly relat$ 6! prosecu;n ( ,,sr&,,ed & t wd n h be5 9curr$ if s* prosecu;n _h n o3urr$4 ,= example1 a por;n ( g5]al & adm9i/rative exp5ses1 s* z ! relevant por;n ( exp5ditures = tra9+ employees or = p]sonnel or #df ,pool ( deducti# c#h a3.t+ /aff1 t is directly relat$ 6! prosecu;n ( ,,sr&,,ed & t wd n h o!rwise be5 9curr$ is 3sid]$ 6be directly attributa# 6! prosecu;n ( ,,sr&,,ed4 ,al1 a por;n ( c]ta9 ov]h1d exp5ses1 s* z ! co/ ( liges1 is g5],y 3sid]$ 6be directly attributa# 6! prosecu;n ( ,,sr&,,ed if x c 2 e/abli%$ t s* por;n o!rwise meets ! require;ts ( p>agraph #bijj7#b77c7 (! ,regul,ns4 ,! por;n ( factory ov]h1ds or g5]al & adm9i/rative exp5ses t does n meet ! require;ts ( p>agraph #bijj7#b77c7 (! ,regul,ns may 2 9clud$ 9 ! pool ( deducti# ,,sr&,,ed exp5ditures 6! ext5t t x relates 6! provi.n ( premises1 facilities or equip;t =! prosecu;n ( ,,sr&,,ed c>ri$ on 9 ,canada & o!rwise meets ! require;ts ( subsec;n #bijj7#c7 (! ,regul,ns z 4cuss$ 9 p>agraph #ba4 #ba4 ,=! purposes ( subclause #cg7#h77a77;ii77,a77;ii71 #dg ,pool ( deducti# d#h subsec;n #bijj7#c7 (! ,regul,ns describes ! exp5ditures t >e directly attributa# 6! provi.n ( premises1 facilities or equip;t =! prosecu;n ( ,,sr&,,ed4 ,p>agraph #bijj7#c77a7 (! ,regul,ns provides t ! co/ (! ma9t5.e & upkeep ( premises1 facilities or equip;t provid$ = ,,sr&,,ed is directly attributa# 6! provi.n ( s* premises1 facilities or equip;t4 ,p>agraph #bijj7#c77b7 (! ,regul,ns provides t c]ta9 o!r exp5ditures >e al directly attributa# 6! provi.n ( premises1 facilities or equip;t =! prosecu;n ( ,,sr&,,ed c>ri$ on 9 ,canada4 ,^! o!r exp5ditures 9clude any exp5diture1 or por;n "!(1 t is directly relat$ 6! provi.n ( premises1 facilities or equip;t =! prosecu;n ( ,,sr&,,ed 9 ,canada & t wd n h be5 9curr$ if ^? premises1 facilities or equip;t _h n exi/$4 ,= example1 "u ? p>agraph1 if a build+ [n$ 0! taxpay] is us$ =! prosecu;n ( ,,sr&,,ed1 #dh ,pool ( deducti# e#h a r1sona# por;n (! municipal taxes or ! co/ ( 9sur.e =! build+ is 3sid]$ 6be directly attributa# 6! ,,sr&,,ed4 ,9 s* cases1 ! me?od us$ 6det]m9e ! por;n (! municipal taxes t is directly relat$ 6? use m/ al 2 r1sona# & may1 = example1 2 bas$ on ! squ>e met]s (! build+ us$ = ,,sr&,,ed ov] ! total squ>e met]s (! build+4 ,o!r me?ods c 2 us$ 6det]m9e ! por;n ( an exp5diture t is directly relat$ 6! provi.n ( premises1 facilities or equip;t =! prosecu;n ( ,,sr&,,ed provid$ !y >e r1sona# 9 ! circum/.es4 ,9 all cases1 :i*"e me?od is us$1 ! taxpay] m/ 2 a# 6support t x is r1sona#4 ,9t]e/ exp5se #bb4 ,9t]e/ exp5se 9curr$ on m"oy borr[$ =! prosecu;n ( ,,sr&,,ed is deducti# z a ,,sr&,,ed exp5diture only 6! ext5t t ! borr[$ m"oy is us$ 6make ,,sr&,,ed #di ,pool ( deducti# f#h exp5ditures : >e o!rwise deducti# "u sec;n #cg4 ,exp5ditures (a curr5t nature on1 or 9 respect (1 ,,sr&,,ed3 proxy me?od ,g5]al #bc4 ,taxpay]s :o file ,=m ,t#ffa or ,t#ffe ) _! 9come tax return =a "picul> ye> 9 a3ord.e ) subsec;n #cg7#aj7 may elect "u clause #cg7#h77a77;ii77,b7 6use an alt]nate me?od 6det]m9e _! curr5t exp5ditures on1 or 9 respect --------------------------------------#i (1 ,,sr&,,ed =! ye>4 ,=a tax,n ye> = : ! taxpay] has made s* an elec;n1 ! taxpay]'s curr5t exp5ditures on1 or 9 respect (1 ,,sr&,,ed 9clude only ! foll[+ exp5ditures describ$ 9 subclauses #cg7#h77a77;ii77,b77;,i71 7,,ii71 7,,iv71 7;,v7 & 7,,vi73 #ej ,pool ( deducti# a#i --an exp5diture (a curr5t nature =1 & all or sub/anti,y all ( : is attributa# to1 ! l1se ( facilities1 premises & equip;t 7o!r ?an g5]al purpose (fice equip;t or furniture 7,,gpoef7--see p>agraph #be7 =! prosecu;n ( ,,sr&,,ed 9 ,canada2 --an exp5diture 9 respect (! prosecu;n ( ,,sr&,,ed 9 ,canada directly "utak5 on ! taxpay]'s 2half2 --! por;n ( an exp5diture = sal>y or wages 9curr$ 9 ! ye> = an employee :o is directly 5gag$ 9 ,,sr&,,ed 9 ,canada t c r1sonably 2 3sid]$ 6relate 6s* "w hav+ reg>d 6! "t sp5t 0! employee "!on 7see p>agraphs #bf & #bg72 --! co/ ( mat]ials 3sum$ 9 ! prosecu;n ( ,,sr&,,ed 9 ,canada2 & --"o half ( any o!r exp5diture (a curr5t nature 9 respect (! l1se ( premises1 facilities or equip;t 7o!r #ea ,pool ( deducti# b#i ?an ,,gpoef7 us$ prim>ily =! prosecu;n ( ,,sr&,,ed 9 ,canada4 8,all or sub/anti,y all0 & 8prim>ily0 #bd4 ,"u subclause #cg7#h77a77;ii77,b77;,i71 an exp5diture 6l1se premises1 facilities or equip;t 7o!r ?an ,,gpoef7 t is 9t5d$ 6be us$ #ij@3p or m 9 ! prosecu;n ( ,,sr&,,ed at ! "t x is made & is actu,y us$ 9 t mann] is 3sid]$1 subject 6p>agraph #cg7#h77d7 7see p>agraph #ac71 6be an exp5diture =1 & all or sub/anti,y all attributa# to1 ! l1se ( premises1 facilities or equip;t =! prosecu;n ( ,,sr&,,ed4 ,h["e1 if ! premises1 facilities or equip;t >e us$ prim>ily 7m ?an #ej@3p7 b less ?an #ij@3p =! prosecu;n ( ,,sr&,,ed1 "o half (! exp5diture 9 respect (! l1se ( premises1 facilities or equip;t is 9clud$ z an #eb ,pool ( deducti# c#i exp5diture on1 or 9 respect (1 ,,sr&,,ed "u subclause #cg7#h77a77;ii77,b77,,vi74 ,g5]al purpose (fice equip;t or furniture #be4 ,exp5ditures 6acquire or l1se g5]al purpose (fice equip;t or furniture 7,,gpoef7 >e n exp5ditures on1 or 9 respect (1 ,,sr&,,ed "u subclause #cg7#h77a77;ii77,b77;,i71 7,,iii7 or 7,,vi74 ,,gpoef 9cludes all furniture1 s* z desks1 *airs1 lamps1 fil+ cab9ets & book%elves4 ,x al 9cludes photocopi]s1 fax ma*9es1 teleph"os1 pag]s1 typewrit]s1 ^w processors1 teletypes & calculators4 ,-put]s1 9clud+ h>dw>e1 s(tw>e & ancill>y equip;t1 >e n 3sid]$ 6be ,,gpoef4 #ec ,sal>y & wages d#i #bf4 ,"u subclause #cg7#h77a77;ii77,b77,,iv71 an exp5diture on1 or 9 respect (1 ,,sr&,,ed 9cludes ! por;n ( an exp5diture made 9 respect ( an exp5se = sal>y & wages ( an employee :o is directly 5gag$ 9 ,,sr&,,ed 7see p>agraph #bg7 9 ,canada t c r1sonably 2 3sid]$ 6relate 6s* "w hav+ reg>d 6! "t sp5t 0! employee on s* ,,sr&,,ed4 ,:5 t por;n repres5ts all or sub/anti,y all 7#ij@3p or m7 (! "t sp5t 0! employee on s* "w1 all (! exp5diture is deem$ 6be on ,,sr&,,ed4 ,h["e1 see p>agraph #aa = re/ric;ns 3c]n+ bonuses1 sal>ies & wages ( specifi$ employees4 ,! expres.n 8sal>y or wages0 is def9$ 9 subsec;n #bdh7#a7 & m1ns 9come f an (fice or employ;t z calculat$ "u subdivi.n a ( divi.n ;,b ( ,"p ;,i 7sec;ns #e 6#h 9clusively7 (! ,act4 ,sal>y or wages ( an employee g5],y 9cludes vac,n pay z well z #ed ,pool ( deducti# e#i any exp5diture made 9 respect (a b5efit t wd 2 taxa# 6! employee "u sec;n #f4 ,employees directly 5gag$ 9 ! prosecu;n ( ,,sr&,,ed #bg4 ,:e!r an employee is1 at a "picul> "t1 directly 5gag$ 9 ,,sr&,,ed is a "q ( fact bas$ on ! duties p]=m$ 0! employee & n on ! employee's job title4 ,g5],y1 employees 3duct+ exp]i;t,n & analysis 9 ! p]=m.e ( basic rese>*1 appli$ rese>*1 or exp]i;tal develop;t >e 3sid]$ 6be directly 5gag$ 9 ,,sr&,,ed4 ,9 a4i;n1 employees >e 3sid]$ 6be directly 5gag$ 9 ,,sr&,,ed :5 !y >e p]=m+ te*nical support "w s* z 5g9e]+1 design1 op],ns rese>*1 ma!matical analysis1 -put] programm+1 7non-r\t9e7 data collec;n1 te/+ or psy*ological rese>* t >e -m5surate )! ne$s & directly 9 support (! basic or appli$ rese>* or #ee ,pool ( deducti# f#i exp]i;tal develop;t "w4 ,manag]s & sup]visors >e al 3sid]$ 6be directly 5gag$ 9 ,,sr&,,ed :5 !y >e p]=m+ exp]i;t,n & analysis 9 ! p]=m.e ( basic rese>*1 appli$ rese>* or exp]i;tal develop;t & :5 !y >e c>ry+ \ te*nical activities 9 support (! rese>* or develop;t "w4 ,9 a4i;n1 manag]s & sup]visors :o sup]vise ! ongo+ ,,sr&,,ed "w >e al 3sid]$ 6be directly 5gag$ 9 ,,sr&,,ed if1 & 6! ext5t1 !y >e direct+ ! c\rse (! ongo+ ,,sr&,,ed or provid+ direct te*nical 9put 96! ,,sr&,,ed "w4 ,h["e1 any "t sp5t 0a manag] or sup]visor p]=m+ non- te*nological manage;t activities or deci.n-mak+ func;ns t d n directly 9flu;e ! c\rse (! ,,sr&,,ed1 ev5 if x relates 6! ,,sr&,,ed1 is n 3sid]$ 6be "t ! manag] or sup]visor is directly 5gag$ 9 ,,sr&,,ed4 #ef ,exp5ditures (a ,capital g#i ,nature on1 or 9 ,respect (1 ,,sr&,,ed ,g5]al #bh4 ,"u p>agraph #cg7#a77b71 ! am.t ( exp5ditures (a capital nature t may 2 9clud$ 9 ! taxpay]'s pool ( deducti# ,,sr&,,ed exp5ditures =a tax,n ye> 7see p>agraph #cj7 is limit$ 6! less] ( 7a7 ! total ( all exp5ditures (a capital nature made 9 ! ye> or any previ\s ye> 5d+ af #aieh on ,,sr&,,ed c>ri$ on 9 ,canada t is directly "utak5 by1 or on 2half (1 ! taxpay] & t is relat$ 6a busi;s (! taxpay]2 & -------------------------------------#aj 7b7 ! am.t t wd 2 ! undepreciat$ capital co/ (! prop]ty s acquir$ z (! 5d (! tax,n ye>1 calculat$ z if #eg ,pool ( deducti# a#aj no am.t _h be5 deduct$ 9 respect (! prop]ty "u sec;n #cg =! tax,n ye>4 ,sep>ate prescrib$ class #bi4 ,p>agraph #aajb7#a77d7 (! ,regul,ns excludes f ! classes ( prop]ty on : capital co/ all[.e may 2 claim$ prop]ty t has be5 acquir$ 0an exp5diture = : ! taxpay] is all[$ a deduc;n "u sec;n #cg4 ,"!=e1 a taxpay] is prev5t$ f duplicat+ claims = exp5ditures (a capital nature 0claim+ capital co/ all[.e on s* prop]ty4 ,9 a4i;n1 subsec;n #cg7#f7 provides t1 =! purposes ( sec;n #ac1 an am.t claim$ "u subsec;n #cg7#a7 t may r1sonably 2 3sid]$ 6be 9 respect ( prop]ty describ$ 9 p>agraph #cg7#a77b7 w 2 deem$ 6be an am.t t has be5 all[$ 6! taxpay] z capital co/ all[.e4 ,s9ce subsec;n #cg7#f7 al deems ! prop]ty 6be (a sep>ate prescrib$ class1 subsec;n #ac7#a7 may require an #eh ,pool ( deducti# b#aj am.t 6be 9clud$ 9 ! taxpay]'s 9come z recapture ( capital co/ all[.e if ! prop]ty is 4pos$ (4 ,9 calculat+ ! am.t t wd o!rwise 2 ! undepreciat$ capital co/ (! prop]ty1 ! capital co/ (! prop]ty w 2 reduc$ 0! am.ts t 7 deduct$ "u subsec;n #cg7#a7 t may r1sonably 2 3sid]$ 6be 9 respect (! prop]ty4 ,p>agraph #ac7#g.a77e7 reduces ! capital co/ ( deprecia# prop]ty &1 3sequ5tly1 ! undepreciat$ capital co/ (! prop]ty 0! am.t ( any 9ve/;t tax cr$it t 0 deduct$ 9 a prec$+ ye> =! prop]ty4 ,p>agraph #ac7#g.a77f7 usu,y reduces ! capital co/ ( deprecia# prop]ty &1 3sequ5tly1 ! undepreciat$ capital co/ (! prop]ty 0! am.t ( any assi/.e ! taxpay] has rcvd or is 5titl$ 6rcv4 ,h["e1 p>agraph #ac7#g.a77a7 provides t ! capital co/ & undepreciat$ capital co/ (! prop]ty is n reduc$ 0an am.t describ$ 9 p>agraph #cg7#a77d74 ,acly1 9 ! calcul,n (! undepreciat$ #ei ,pool ( deducti# c#aj capital co/ (! prop]ty1 ! am.t ( gov]n;t or non-gov]n;t assi/.e ! taxpay] rcvd1 is 5titl$ 6rcv or c r1sonably 2 expect$ 6rcv =! acquisi;n (! prop]ty t wd o!rwise 2 deprecia# prop]ty us$ 9 ! taxpay]'s ,,sr&,,ed projects 7see p>agraph #ci71 w n reduce ! capital co/ (! prop]ty4 ,a taxpay] may ?us 2 requir$ 69clude an am.t 9 9come "u subsec;n #ac7#a7 ev5 ?\< "! has n be5 a 4posi;n (! "picul> prop]ty4 ,= example1 ? cd o3ur :5 ! taxpay] has claim$ a deduc;n "u subsec;n #cg7#a7 =! 5tire capital co/ (! prop]ty & al claims any por;n (! 9ve/;t tax cr$it = t prop]ty4 ,exp5ditures (a capital nature on1 or 9 respect (1 ,,sr&,,ed #cj4 ,subp>agraph #cg7#h77a77;ii7 provides t ref];es 9 sec;n #cg 7o!r ?an 9 subsec;n #cg7#b7--see p>agraph #dg7 6exp5ditures (a capital #fj ,pool ( deducti# d#aj nature on1 or 9 respect (1 ,,sr&,,ed 9 ,canada 9clude only ! exp5ditures describ$ "u subclause #cg7#h77a77;ii77,a77,,iii7 or1 =a tax,n ye> t ! taxpay] has made an elec;n "u clause #cg7#h77a77;ii77,b7 7see p>agraph #ag71 exp5ditures describ$ 9 subclause #cg7#h77a77;ii77,b77,,iii74 ,"u subclause #cg7#h77a77;ii77,a77,,iii71 an exp5diture (a capital nature on1 or 9 respect (1 ,,sr&,,ed m1ns an exp5diture t1 at ! "t x 0 9curr$1 0 =! provi.n ( premises1 facilities or equip;t1 :5 at t "t x 0 9t5d$ t3 --x wd 2 us$ dur+ all or sub/anti,y all ( xs op]at+ "t 9 xs expect$ use;l life =! prosecu;n ( ,,sr&,,ed 9 ,canada2 or --t all or sub/anti,y all ( xs value wd 2 3sum$ 9 ! prosecu;n ( ,,sr&,,ed 9 ,canada4 ,"u clause #cg7#h77a77;ii77,b71 an exp5diture (a capital nature on1 #fa ,pool ( deducti# e#aj or 9 respect (1 ,,sr&,,ed 9cludes only an exp5diture describ$ 9 subclause #cg7#h77a77;ii77,a77,,iii7 o!r ?an ,,gpoef 7see p>agraph #be74 ,\tlays 6acquire ,,gpoef >e 9clud$ 9 a prescrib$ class & >e eligi# = capital co/ all[.e at ! prescrib$ rate4 #ca4 ,! phrase 8all or sub/anti,y all0 is norm,y view$ z m1n+ 8#ij@3p or m40 ,an exp5diture 6provide a "picul> piece ( equip;t : is 6be us$ "ply = ,,sr&,,ed & "ply = o!r purposes w meet ? require;t ( subclause #cg7#h77a77;ii77,a77,,iii7 if ! equip;t's anticipat$ use = o!r purposes dur+ xs op]at+ "t 9 xs expect$ use;l life does n exce$ #aj@3p or if x is 9t5d$ t n less ?an #ij@3p (! value (! prop]ty acquir$ is 6be 3sum$ 9 ! prosecu;n ( ,,sr&,,ed4 ,! det]m9,n ( :e!r an exp5diture (a capital nature is 6be us$ all or sub/anti,y all ( xs op]at+ "t 9 xs expect$ use;l life 9 ! prosecu;n #fb ,pool ( deducti# f#aj ( ,,sr&,,ed is made at ! "t ! prop]ty is acquir$4 ,9 mak+ ? det]m9,n1 ! 9t5d$ use (! prop]ty 9 ! ye> 9 : ! exp5diture 0 made z well z ov] xs expect$ use;l life w 2 3sid]$4 ,subsequ5t use (! prop]ty may provide evid;e (! taxpay]'s 9t5;n at ! "t ! exp5diture 0 made4 ,h["e1 :5 ! subsequ5t use is 3tr>y 6! taxpay]'s /at$ 9t5;n1 ! taxpay] m/ 2 a# 6support ! 3t5;n t ! prop]ty 0 9t5d$ 6be us$ all or sub/anti,y all ( xs op]at+ "t 9 xs expect$ use;l life 9 ! -------------------------------------#aa prosecu;n ( ,,sr&,,ed 9 ,canada4 ,fur!rmore1 see p>agraph #eb =a 4cus.n (! recapture rules t may apply4 ,g5],y1 op]at+ "t m1ns ! "t ! equip;t usu,y runs or func;ns4 ,:e!r equip;t is us$ = ,,sr&,,ed dur+ xs op]at+ "t is a "q ( fact t c only 2 det]m9$ on a case-by-case basis4 ,h["e1 "t sp5t 6set up equip;t = ,,sr&,,ed "w1 & "t sp5t 6swit* ! equip;t back #fc ,pool ( deducti# a#aa 6ano!r use1 w usu,y 2 3sid]$ 6be op]at+ "t 9 : ! equip;t is us$ =! prosecu;n ( ,,sr&,,ed1 z l;g z x is r1sona# 9 ! circum/.es4 ,if an exi/+ prop]ty is us$ tempor>ily = ,,sr&,,ed1 ! direct co/s 79clud+ ma9t5.e & repairs7 t wd n h be5 9curr$ if ! ,,sr&,,ed _h n be5 c>ri$ \ may 2 9clud$ 9 ! calcul,n (! pool ( deducti# ,,sr&,,ed exp5ditures "u p>agraph #cg7#a77a74 ,no am.t (! co/ or undepreciat$ capital co/ ( t prop]ty may 2 9clud$ "u p>agraph #cg7#a77b74 ,pay;ts 6,be ,us$ = ,,sr&,,ed ,g5]al #cb4 ,pay;ts 6be us$ = ,,sr&,,ed 7o!r ?an ^? describ$ 9 p>agraph #ac7 t >e made 6corpor,ns resid5t 9 ,canada : >e exempt f ,"p ;,i tax "u p>agraph #adi7#a77j71 6approv$ 5tities 7see p>agraph #cc &! app5dix7 &1 :5 ! #fd ,pool ( deducti# b#aa pay;t is made 2f #aiif1 6corpor,ns resid5t 9 ,canada1 may 2 9clud$ 9 ! calcul,n (! pool ( deducti# ,,sr&,,ed exp5ditures "u subp>agraph #cg7#a77a77;ii74 ,pay;ts 6^! organiz,ns w qualify only if !y >e 6be us$ = ,,sr&,,ed c>ri$ on 9 ,canada relat$ 6a busi;s (! taxpay] & if ! taxpay] mak+ ! pay;t is 5titl$ 6exploit ! results (! ,,sr&,,ed 7see p>agraph #cg74 ,approval ( ,m9i/] #cc4 ,! t]m 8approv$0 z us$ 9 sec;n #cg & def9$ 9 subsec;n #cg7#g7 ref]s only 6! approval1 0! ,m9i/]1 ( associ,ns or o!r organiz,ns4 ,x does n ref] 6! approval ( ,,sr&,,ed programs4 ,6det]m9e :e!r an 9/itu;n or associ,n has be5 approv$ 0! ,m9i/] = purposes ( sec;n #cg1 ! taxpay] %d 3sult ! li/ ( c]ta9 approv$ 5tities 9 ! app5dix1 or if ! "n is n 9dicat$ "!1 3tact ! #fe ,pool ( deducti# c#aa organiz,n 9 "q4 ,=! purposes ( clause #cg7#a77a77;ii77,b71 all ,canadian univ]sities & a6iliat$ colleges >e 3sid]$ 6be approv$4 ,an 8approv$ organiz,n10 =! purposes ( clause #cg7#a77a77;ii77,e71 9cludes ! ,natural ,sci;es & ,5g9e]+ ,rese>* ,c\ncil1 ! ,m$ical ,rese>* ,c\ncil &! ,social ,sci;es & ,humanities ,rese>* ,c\ncil4 ,6apply = 8approv$0 /atus1 an 9/itu;n or associ,n %d write 6! ,deputy ,assi/ant ,-mis.n]1 ,9come ,tax ,rul+s ,directorate1 ,policy & ,legisl,n ,bran*1 ,canada ,cu/oms & ,rev5ue ,ag5cy1 ,ottawa ,,on ,k#a;,a ,,ol#e4 ,relat$ 6a ,busi;s #cd4 ,:e!r a pay;t is 6be us$ =1 or an exp5diture is made on or 9 respect (1 ,,sr&,,ed t is relat$ 6a taxpay]'s busi;s is g5],y a "q ( fact t m/ 2 det]m9$ on a case-by-case basis4 #ff ,pool ( deducti# d#aa ,p>agraph #cg7#h77b7 provides1 = grt] c]ta9ty1 t ref];es 6,,sr&,,ed relat$ 6a busi;s 9clude any ,,sr&,,ed t may l1d to1 or facilitate1 an ext5.n ( t busi;s4 ,= ,,sr&,,ed 6be relat$ 6a busi;s c>ri$ on 0a taxpay]1 x is nec 6h "s 9t]connec;n or l9k 2t ! ,,sr&,,ed &! taxpay]'s busi;s4 ,? require;t w g5],y 2 satisfi$ :5 ! results (! ,,sr&,,ed1 if su3ess;l1 h a direct & b5eficial applic,n 9 ! busi;s t is c>ri$ on 0! taxpay]4 ,p>agraph #cg7#h77c7 provides t ! prosecu;n ( ,,sr&,,ed1 9 & 0xf1 is only 3sid]$ a busi;s (! taxpay] 6: ! ,,sr&,,ed relates if ! taxpay] derives all or sub/anti,y all ( xs rev5ue f ! prosecu;n ( ,,sr&,,ed4 ,= ? purpose1 a taxpay] deriv+ #ij@3p or m ( xs rev5ue f ! prosecu;n ( ,,sr&,,ed is 3sid]$ 6derive 8all or sub/anti,y all0 ( xs rev5ue f ! prosecu;n ( ,,sr&,,ed4 #fg ,rev5ue ,f ! ,prosecu;n ( e#aa ,,sr&,,ed #ce4 ,rev5ue f ! prosecu;n ( ,,sr&,,ed 9cludes rev5ue f ! sale ( "rs in1 or >is+ \ (1 ,,sr&,,ed c>ri$ on 0! taxpay]4 ,9come f ! p]=m.e ( ,,sr&,,ed c>ri$ \ on 2half ( ano!r taxpay] is g5],y 3sid]$ 6be rev5ue f ! prosecu;n ( ,,sr&,,ed4 ,royalties e>n$ f lic5s+ ! results ( ,,sr&,,ed or f ! sale ( s* results 7= example1 a pat5t7 >e al g5],y 3sid]$ 6be rev5ue deriv$ f ! prosecu;n ( ,,sr&,,ed4 ,h["e1 if a taxpay] 3tracts ) ano!r p]son = ,,sr&,,ed 6be p]=m$ on ! taxpay]'s 2half1 =! purposes ( p>agraph #cg7#h77c71 ! taxpay] _c 2 sd 6derive 8all or sub/anti,y all (! taxpay]'s rev5ue f ! prosecu;n ( ,,sr&,,ed c>ri$ on 0! taxpay]0 if ! taxpay] pursues no activities1 o!r ?an reta9+ ! "rs p]ta9+ 6any results f ! ,,sr&,,ed p]=m$ & -m]cializ+ ^! "rs or results4 ,fur!rmore1 rev5ue deriv$ f ! #fh ,pool ( deducti# f#aa -m]cial exploit,n ( products or processes develop$ 0us+ ! "k-h[ does n 3/itute rev5ue f ! prosecu;n ( ,,sr&,,ed )9 ! m1n+ ( p>agraph #cg7#h77c71 b r x 3/itutes ! sale ( f9i%$ products4 ,9come f a transac;n t 9volves a lic;e b is 9 sub/.e a sale (a f9i%$ product 7= example1 applic,n s(tw>e7 is n 3sid]$ 6be rev5ue deriv$ f ! prosecu;n ( ,,sr&,,ed4 ,rev5ue >is+ f ! prosecu;n ( ,,sr&,,ed g5],y 5visages ! provi.n ( sci5tific rese>* =a fee or a sale (! "k-h[ develop$4 ,busi;s ,c>ri$ ,on 0a ,relat$ ,corpor,n #cf4 ,subsec;n #cg7#a.a7 provides t 7not)/&+ p>agraph #cg7#h77c77 =! purposes ( subsec;n #cg7#a71 ": a corporate taxpay] p]=ms ,,sr&,,ed t is relat$ 6a busi;s actively 5gag$ 9 0ano!r corpor,n t is relat$ 6! taxpay] at ! "t ! taxpay] makes an #fi ,pool ( deducti# g#aa exp5diture or pay;t = ,,sr&,,ed1 ! ,,sr&,,ed is 3sid]$ 6be relat$ 6a busi;s (! taxpay] at t "t4 ,?us1 = example1 if ! taxpay] p]=m+ ,,sr&,,ed is a :olly-[n$ subsidi>y ( ano!r corpor,n1 ! subsidi>y's ,,sr&,,ed w 2 3sid]$ 6be 8relat$ 6a busi;s (! taxpay]0 if ! ,,sr&,,ed is relat$ 6a busi;s c>ri$ on 0! p>5t4 ,! p>5t m/ 2 actively 5gag$ 9 ! busi;s at ! "t ! subsidi>y makes ! exp5diture1 or pay;t =1 ,,sr&,,ed4 ,9 -------------------------------------#ab det]m9+ :e!r two corpor,ns >e relat$ =! purposes ( subsec;n #cg7#a.a71 ! det]m9,n is 6be made )\t ref];e 6a "r ref]r$ 6in p>agraph #bea7#e77b74 ,5title;t 6,exploit ! ,results #cg4 ,! det]m9,n ( :e!r a taxpay] is 85titl$ 6exploit ! results0 ( ,,sr&,,ed is a "q ( fact t c only 2 det]m9$ on a case-by-case basis4 #gj ,pool ( deducti# a#ab ,= example1 ? require;t is 3sid]$ 6be met 9 cases ": ! taxpay] has ! "r 6use a pat5t t results f ! ,,sr&,,ed project ev5 if ! taxpay] is *>g$ a royalty or simil> fee =! use (! pat5t4 ,? require;t is al 3sid]$ 6be met 9 cases ": ! taxpay] is 5titl$ 64tribute & m>ket any product t results f ! ,,sr&,,ed project4 ,9 a4i;n1 :5 a taxpay] makes a pay;t = ,,sr&,,ed 6a corpor,n describ$ 9 subp>agraph #cg7#a77a77i4#a7 or 6an approv$ univ]s;y or o!r 5t;y describ$ 9 subp>agraph #cg7#a77a77;ii7 & x is likely t ! ,,sr&,,ed project w n result 9 a product or pat5t1 ! taxpay] w 2 3sid]$ 6h met ? require;t if x c 2 e/abli%$ t ! taxpay] has1 z a 3sequ;e (! pay;t1 be5 grant$ a pref]5tial "r 6use ! results (! ,,sr&,,ed 9 xs busi;s4 ,h["e1 an >range;t 9volv+ pay;ts 6an 5t;y describ$ 9 subp>agraph #cg7#a77a77i4#a7 or 7;ii7 0a taxpay] :o [ns %>es (a corpor,n : w #ga ,pool ( deducti# b#ab exploit ! results (a ,,sr&,,ed project does n meet ? require;t 2c x is ! taxpay] mak+ ! pay;t :o m/ 2 5titl$ 6exploit ! results (! ,,sr&,,ed4 ,pay;ts = ,basic or ,appli$ ,rese>* #ch4 ,"u c]ta9 circum/.es1 a corpor,n c 9clude 9 xs pool ( deducti# ,,sr&,,ed exp5ditures "u subp>agraph #cg7#a77a77;iii7 a pay;t made 6a corpor,n t is resid5t 9 ,canada & exempt f tax "u p>agraph #adi7#a77j74 ,6be 9clud$ 9 ! pool ( deducti# ,,sr&,,ed exp5ditures "u ? subp>agraph1 ! pay;t m/ 2 = ,,sr&,,ed t is basic or appli$ rese>* c>ri$ on 9 ,canada4 ,! prim>y purpose (! pay;t = ,,sr&,,ed m/ 2 =! taxpay] 6use ! results f ! basic or appli$ rese>* 9 3junc;n ) o!r ,,sr&,,ed activities directly "utak5 by1 or on 2half (1 ! taxpay] t relate 6a busi;s (! #gb ,pool ( deducti# c#ab taxpay]4 ,fur!rmore1 ! basic or appli$ rese>* m/ h te*nological pot5tial = applic,n 9 o!r types ( busi;ses t >e n relat$ 6! busi;s c>ri$ on 0! pay+ corpor,n4 ,assi/.e = ,,sr&,,ed ,receipt & ,repay;t ( ,assi/.e #ci4 ,p>agraph #cg7#a77d7 d1ls )! am.t ( gov]n;t & non-gov]n;t assi/.e 7see p>agraph #dj7 t1 at ! taxpay]'s fil+- due date 7see p>agraph #f7 =! ye>1 a taxpay] has rcvd1 is 5titl$ 6rcv or c r1sonably 2 expect$ 6rcv = an exp5diture describ$ 9 p>agraph #cg7#a77a7 or #cg7#a77b74 ,"u p>agraph #cg7#a77d71 ! am.t ( s* assi/.e decr1ses ! pool ( deducti# ,,sr&,,ed exp5ditures4 ,= tax,n ye>s t 2g9 2f #aiif1 gov]n;t & non-gov]n;t assi/.e 9 respect ( exp5ditures describ$ 9 p>agraph #cg7#a77a7 or #gc ,pool ( deducti# d#ab #cg7#a77b7 w reduce ! pool ( deducti# ,,sr&,,ed exp5ditures if1 at ! "t ( fil+ ! return ( 9come =! ye>1 ! taxpay] has rcvd1 is expect$ 6rcv or c r1sonably 2 expect$ 6rcv ! assi/.e4 ,p>agraph #cg7#a77c7 provides t any repay;t ( s* assi/.e 9cr1ses a taxpay]'s pool ( deducti# ,,sr&,,ed exp5ditures 9 ! ye> ( repay;t 6! ext5t x _h previ\sly reduc$ ! pool4 ,gov]n;t & ,non-,gov]n;t ,assi/.e #dj4 8,gov]n;t assi/.e0 is def9$ 9 subsec;n #abg7#i74 ,x m1ns assi/.e f a gov]n;t1 municipal;y or o!r public au?or;y :e!r z a grant1 subsidy1 =giva# loan1 deduc;n f tax 7o!r ?an an 9ve/;t tax cr$it claim$ "u subsec;n #abg7#e7 or 7#f771 9ve/;t all[.e or z any o!r =m ( assi/.e4 ,= example1 c]ta9 prov9cial tax cr$its t >e availa# = taxpay]s p]=m+ #gd ,pool ( deducti# e#ab ,,sr&,,ed t reduce ! am.t ( prov9cial taxes paya# >e 3sid]$ gov]n;t assi/.e4 ,subsec;n #abg7#i7 def9es 8non-gov]n;t assi/.e0 z an am.t t wd 2 9clud$ 9 ! taxpay]'s 9come "u p>agraph #ab7#a77;x7 7r1d )\t ref];e 6subp>agraphs 7;vi7 & 7;vii7 "!(74 ,ess5ti,y1 non-gov]n;t assi/.e is an am.t t c r1sonably 2 3sid]$ 6h be5 rcvd z an 9duce;t or z a reimburse;t1 3tribu;n1 all[.e or z assi/.e =! co/ ( prop]ty or = an \tlay or exp5se4 ,s* an am.t w 3/itute non-gov]n;t assi/.e 6! ext5t x 0 n o!rwise 9clud$ 9 calculat+ ! taxpay]'s 9come or deduct$ 9 calculat+ any bal.e ( undeduct$ \tlays1 exp5ses or o!r am.ts =! ye> or a prec$+ tax,n ye>4 ,non-gov]n;t assi/.e may 2 9 ! =m (a grant1 subsidy1 =giva# loan1 deduc;n f tax1 all[.e or any o!r =m ( 9duce;t or assi/.e4 #ge ,pool ( deducti# f#ab ,! det]m9,n ( :e!r a "picul> loan w 3/itute gov]n;t or non-gov]n;t assi/.e dep5ds on ! "picul> facts & circum/.es 3c]n+ t loan4 ,! fact t a full rec\rse loan is 9t]e/-free or is made at a l[] ?an -m]cial rate ( 9t]e/ w g5],y n classify ! loan z gov]n;t or non- gov]n;t assi/.e4 ,sup]-,all[.e ,b5efit ,am.t #da4 ,= tax,n ye>s 2g9n+ af ,febru>y #bjjj & 5d+ af #bjjj1 p>agraph #cg7#a77d4#a7 provides =! reduc;n (a corpor,n's pool ( deducti# ,,sr&,,ed exp5ditures =a tax,n ye> 0xs 8sup]- all[.e b5efit am.t0 9 respect (a prov9ce =! ye> & prec$+ tax,n ye>s4 -------------------------------------#ac ,"u subsec;n #abg7#i71 ! t]m 8sup]- all[.e b5efit am.t0 (a corpor,n 9 respect (a prov9ce =a tax,n ye> is calculat$ us+ ! foll[+ =mula3 #gf ,pool ( deducti# a#ac 7;,a m9us ;,b7 multipli$ 0;,c ": ;,a is ! am.t 9 respect ( an ,,sr&,,ed exp5diture 9curr$ 9 a "picul> ye> t ! corpor,n is1 or 2comes1 5titl$ 6deduct 9 -put+ xs 9come or taxa# 9come = purposes ( calculat+ xs prov9cial 9come tax paya# = any tax,n ye>2 ;,b is ! ,,sr&,,ed exp5ditures o!rwise det]m9$ 7)\t ref];e 6prov9cial 9come tax cr$its72 & ;,c repres5ts ! prov9cial rate ( tax 6be appli$ 63v]t ! excess ( ;,a m9us ;,b 96an 9come tax cr$it equival5t4 ,": a corpor,n's exp5diture limit =! ye> 7see p>agraph #ha7 is nil1 ;,c is ! maximum prov9cial corporate 9come tax rate applica# 6active busi;s 9come e>n$ 9 t prov9ce =! ye>4 ,o!rwise1 ;,c is ! rate ( prov9cial 9come tax #gg ,pool ( deducti# b#ac applica# 6a corpor,n t is n associat$ ) any o!r corpor,n 9 ! ye> & t has taxa# 9come =! ye> ( less ?an 4#bjj1jjj e>n$ f c>ry+ on an active busi;s 9 t prov9ce4 ,e6ect ( ,9ve/;t ,tax ,cr$it #db4 ,"u p>agraph #cg7#a77e71 ! taxpay]'s pool ( deducti# ,,sr&,,ed exp5ditures w 2 reduc$ 0! am.t ( 9ve/;t tax cr$it deduct$ or deem$ 6be deduct$ 7z 4cuss$ 9 p>agraph #he7 0! taxpay] "u subsec;n #abg7#e7 9 calculat+ taxes paya# 9 a prec$+ ye>1 6! ext5t t x may r1sonably 2 3sid]$ 6relate to --a 8prescrib$ proxy am.t0 7see p>agraph #ef7 (a prec$+ tax,n ye> (! taxpay]2 --qualifi$ ,,sr&,,ed exp5ditures (a curr5t nature made 9 a prec$+ tax,n ye>2 or #gh ,pool ( deducti# c#ac --an am.t 9clud$ 9 ! taxpay]'s 8,,sr&,,ed qualifi$ exp5diture pool0 at ! 5d (a prec$+ tax,n ye> 2c ( p>agraph #abg7#ac77e7 7see p>agraph #ed74 ,6! ext5t t an 9ve/;t tax cr$it deduct$ or refund$ may r1sonably 2 3sid]$ 6relate 6a prop]ty acquir$ 9 a prec$+ ye> z 8%>$-use-equip;t0 7see p>agraph #fa7 or may r1sonably 2 3sid]$ 6>ise z a result (a qualifi$ ,,sr&,,ed exp5diture (a capital nature1 x w reduce ! capital co/ (! prop]ty acquir$ 7see p>agraph #bi7 "u p>agraph #ac7#g.a77e74 ,= record-keep+ purposes1 a taxpay] %d1 "!=e1 sep>ate 9ve/;t tax cr$its ei deduct$ or availa# t 7 e>n$ = qualifi$ ,,sr&,,ed exp5ditures f ^? e>n$ on o!r qualifi$ prop]ty4 ,fur!rmore1 9ve/;t tax cr$its e>n$ =a prescrib$ proxy am.t or = curr5t exp5ditures on ,,sr&,,ed %d 2 sep>at$ f ^? e>n$ on exp5ditures (a capital nature or %>$-use- #gi ,pool ( deducti# d#ac equip;t s9ce 9ve/;t tax cr$its e>n$ on curr5t exp5ditures on ,,sr&,,ed &a prescrib$ proxy am.t may 2 subject 6a di6]5t refund rate z 4cuss$ 9 p>agraphs #he 6#hg4 ,exp5ditures ,ren\nc$ =! ,purposes ( ,"p ,,viii ,tax #dc4 ,:5 a corpor,n issu$ sci5tific rese>* & exp]i;tal develop;t tax cr$it securities 69ve/ors 2f #aihf1 ! corpor,n 0 p]mitt$ 6g5]ate a ,"p ,,viii refund if x ren\nc$ xs 5title;t 6deduct all or a por;n ( xs ,,sr&,,ed exp5ditures & ren\nc$ xs abil;y 6claim an 9ve/;t tax cr$it on ^! exp5ditures4 ,s* ren\nc$ exp5ditures reduc$ ! taxpay]'s pool ( deducti# ,,sr&,,ed exp5ditures 9 a3ord.e )! provi.ns ( p>agraph #cg7#a77g74 #hj ,acquisi;n ( ,3trol e#ac #dd4 ,p>agraph #cg7#a77h7 & subsec;n #cg7#f.a7 re/rict ! c>ry=w>d (a corpor,n's ,,sr&,,ed exp5ditures if "! has be5 an acquisi;n ( xs 3trol 0a p]son or gr\p ( p]sons at any "t 2f ! 5d (a tax,n ye>4 ,g5],y1 ^! provi.ns 7-b9$ )! applic,n ( subsec;n #bdi7#d71 : deems ! corpor,n's ye> 6h 5d$ immly 2f ! acquisi;n ( 3trol7 op]ate 6reduce a corpor,n's pool ( deducti# ,,sr&,,ed exp5ditures 6nil at ! "t 3trol (! corpor,n is acquir$4 ,p>agraph #cg7#a77h7 & subsec;n #cg7#f.a7 provide t1 9 a subsequ5t tax,n ye> "?\t : ! busi;s 6: ! exp5ditures relate is c>ri$ on 0! corpor,n = pr(it or )a r1sona# expect,n ( pr(it1 ! corpor,n's pool ( deducti# ,,sr&,,ed exp5ditures may 2 re9/at$4 ,! pool ( deducti# ,,sr&,,ed exp5ditures w 2 re9/at$ only 6! ext5t (! 9come 72f claim+ any deduc;n "u subsec;n #cg7#a77 e>n$ 0! corpor,n1 af ! #ha ,pool ( deducti# f#ac acquisi;n ( 3trol1 f ! busi;s 6: ! exp5ditures relat$4 ,9 a4i;n1 if prop]ties >e sold1 l1s$1 r5t$ or develop$1 or s]vices >e r5d]$1 9 ! c\rse ( c>ry+ on ! corpor,n's busi;s 2f ! acquisi;n ( 3trol1 ! pool ( deducti# ,,sr&,,ed exp5ditures w 2 re9/at$ only 6! ext5t (! 9come =! ye> 72f claim+ any deduc;n "u subsec;n #cg7#a77 f any o!r busi;s sub/anti,y all ! 9come ( : is deriv$ f ! sale1 l1s+1 r5tal or develop;t ( simil> prop]ties or ! r5d]+ ( simil> s]vices4 ,,sr&,,ed ,\tside ,canada ,g5]al #de4 ,exp5ditures (a capital nature on ,,sr&,,ed c>ri$ on \tside ,canada >e n deducti# "u sec;n #cg4 ,curr5t exp5ditures on ,,sr&,,ed c>ri$ on \tside ,canada1 if x is directly "utak5 by1 or on 2half (1 ! #hb ,,sr&,,ed \tside ,canada g#ac taxpay] & is relat$ 6! taxpay]'s busi;s may 2 deduct$ "u subsec;n #cg7#b74 ,curr5t exp5ditures made 0pay;ts 6an approv$ associ,n1 univ]s;y1 college1 rese>* 9/itute or o!r simil> 9/itu;n 6be us$ = ,,sr&,,ed c>ri$ on \tside ,canada t is relat$ 6! -------------------------------------#ad taxpay]'s busi;s1 >e al deducti# "u subsec;n #cg7#b7 provid$ t ! taxpay] is 5titl$ 6exploit ! results ( s* ,,sr&,,ed4 ,curr5t exp5ditures on ,,sr&,,ed c>ri$ on \tside ,canada _c 2 c>ri$ =w>d & m/ 2 deduct$ 9 ! ye> ! exp5diture is 9curr$4 ,! nature & loc,n (! activities w 9dicate :e!r ,,sr&,,ed is c>ri$ on 9side or \tside ,canada4 ,=eign ,"w 9 ,support ( ,,sr&,,ed #df4 ,=! purpose ( sec;n #cg1 a taxpay]'s "w ) respect 65g9e]+1 #hc ,,sr&,,ed \tside ,canada a#ad design1 op],ns rese>*1 ma!matical analysis1 -put] programm+1 data collec;n1 te/+ & psy*ological rese>* t is -m5surate )! ne$s & directly 9 support ( basic rese>*1 appli$ rese>*1 or exp]i;tal develop;t (! taxpay] t is c>ri$ on 9 ,canada is ,,sr&,,ed "u p>agraph 7d7 (! def9i;n ( ,,sr&,,ed 9 subsec;n #bdh7#a74 ,?us1 :5 a taxpay] p]=ms s* "w \tside ,canada1 not)/&+ t ! "w is -m5surate )! ne$s & directly 9 support (a "picul> ,canadian ,,sr&,,ed project (! taxpay]1 ! exp5ditures relat+ 6s* "w t is directly "utak5 by1 or on 2half (1 ! taxpay] & is relat$ 6! taxpay]'s busi;s may only 2 deducti# "u subsec;n #cg7#b7 z exp5ditures on ,,sr&,,ed c>ri$ on \tside ,canada4 ,=eign travel exp5ditures1 & any o!r exp5diture 79clud+ sal>ies or wages (a ,canadian employee "utak+ =eign travel71 = ,,sr&,,ed c>ri$ on \tside ,canada may only qualify =a deduc;n "u #hd ,,sr&,,ed \tside ,canada b#ad subsec;n #cg7#b74 ,ev5 if a "picul> exp5diture = ,,sr&,,ed c>ri$ on \tside ,canada is 9curr$ 9 ,canada or is made "? a ,canadian subcontractor1 or if x repres5ts a m9or por;n (! project1 x w n qualify =a deduc;n "u subsec;n #cg7#a74 ,h["e1 exp5ditures1 9clud+ =eign travel exp5ditures --=! acquisi;n ( equip;t or mat]ials us$ 9 ,,sr&,,ed 9 ,canada1 --= tra9+ = ,,sr&,,ed c>ri$ on 9 ,canada1 or --= visits 6=eign cu/om]s 9 respect ( ,,sr&,,ed c>ri$ on 9 ,canada 6update ! cu/om] on ! ,,sr&,,ed project's /atus t >e 9curr$ = an activ;y t does n 3/itute ,,sr&,,ed c>ri$ on \tside ,canada may 2 deducti# "u subsec;n #cg7#a71 provid$ ! require;ts ( ? subsec;n >e o!rwise met &! exp5ditures meet ! require;ts ( subp>agraph #cg7#h77a77;ii74 #he ,exp5ditures = ,,sr&,,ed c#ad ,c>ri$ ,on ,\tside ,canada #dg4 ,subp>agraph #cg7#h77a77;i7 provides t ref];es 9 subsec;n #cg7#b7 6exp5ditures on1 or 9 respect (1 ,,sr&,,ed c>ri$ on \tside ,canada 9clude only exp5ditures t >e 9curr$ =1 & all or sub/anti,y all ( : >e attributa# to1 ! prosecu;n ( ,,sr&,,ed1 or curr5t exp5ditures t >e directly attributa# 7z det]m9$ 0subsec;n #bijj7#b7 (! ,regul,ns7 6! prosecu;n ( ,,sr&,,ed4 ,see p>agraph #ah = -;ts on ! m1n+ ( 8all or sub/anti,y all40 ,! -;ts relat+ 6subsec;n #bijj7#b7 (! ,regul,ns 4cuss$ 9 p>agraphs #ai & #bj al apply =! purposes ( det]m9+ :e!r exp5ditures >e directly attributa# 6! prosecu;n ( ,,sr&,,ed c>ri$ on \tside ,canada z requir$ 0clause #cg7#h77a77;i77,b74 #hf ,recapture ( ,,sr&,,ed d#ad ,all[.e ,g5]al #dh4 ,al? ! a4i;nal all[.e = ,,sr&,,ed 0 elim9at$ 9 #aihc1 subsec;n #cg.a7#c7 applies 2f ! #aiie tax,n ye>1 6require a corpor,n t claim$ an a4i;nal all[.e "u sec;n #cg.a = rese>* prop]ty 69clude an am.t 9 9come if a rese>* prop]ty is 4pos$ (4 ,! recapture 6be 9clud$ 9 9come is equal 6! less] ( 7a7 #ej@3p (! less] ( 7;i7 ! fair m>ket value (! prop]ty at ! "t ( 4posi;n1 & 7;ii7 ! capital co/ (! prop]ty 6! corpor,n at ! "t ( 4posi;n2 & 7b7 ! am.t1 if any1 0: ! total (! am.ts deduct$ "u sec;n #cg.a 0! corpor,n = any tax,n ye> 2g9n+ 2f ! 4posi;n1 & 0any associat$ corpor,ns = tax,n ye>s 5d+ 9 or 2f ! ye> ( 4posi;n1 exce$s ! total ( #hg ,recapture ( all[.e e#ad am.ts previ\sly 9clud$ 9 ! corpor,n's & any associat$ corpor,n's 9come 2c ( subsec;n #cg.a7#c74 ,h["e1 sec;n #cg.a has be5 rep1l$ =! #aiie & subsequ5t tax,n ye>s4 #di4 ,= tax,n ye>s 2f #aiie1 :5 a corpor,n transf]s a rese>* prop]ty 6an associat$ corpor,n 9 a transac;n 6: ei subsec;n #he7#a7 or #hh7#a7 applies1 any recapture is def]r$ until ! prop]ty is sold4 ,! transf]r$ prop]ty is deem$ 6be a rese>* prop]ty (! associat$ corpor,n4 ,if ! corpor,n's proce$s ( 4posi;n =! prop]ty >e less ?an xs capital co/1 ! recipi5t's capital co/ is deem$ 6be ! same z t (! transf]or4 ,! all[.e w 2 immly recaptur$ :5 a rollov] "u subsec;n #he7#a7 is made 6a non-associat$ -pany4 ,sec;n #cg.a has be5 rep1l$ =! #aiie & subsequ5t tax,n ye>s4 #hh ,rese>* ,prop]ty f#ad #ej4 ,a 8rese>* prop]ty0 is def9$ 0subsec;n #cg.a7#e7 6be capital prop]ty 7describ$ 9 p>agraph 7b7 (! def9i;n ( 8qualifi$ exp5diture0 9 subsec;n #cg.a7#e77 t 0 acquir$ z a result ( an exp5diture made 0a corpor,n af ! 5d ( xs #aigg tax,n ye>4 ,! prop]ty m/ n h be5 us$ = any o!r purpose :at"e 2f xs acquisi;n1 &! exp5diture m/ n 2 an exp5diture prescrib$ 9 sec;n #bija (! -------------------------------------#ae ,regul,ns4 ,sec;n #cg.a has be5 rep1l$ =! #aiie & subsequ5t tax,n ye>s4 ,9ve/;t ,tax ,cr$it ,g5]al #ea4 ,! -;ts 9 p>agraphs #eb 6#hh 4cuss ! 9ve/;t tax cr$it = qualifi$ exp5ditures on ,,sr&,,ed4 ,-;ts on ! 9ve/;t tax cr$its (a taxpay] t #hi ,9ve/;t tax cr$it a#ae is a memb] (a "pn]%ip >e 3ta9$ 9 p>agraphs #ib 6#ig4 ,taxpay]s %d al ref] 6=ms ,t#ffa1 ,t#ffe1 ,t#bjch1 ,9ve/;t ,tax ,cr$it 7,9dividuals71 & ,s*$ule #ca (! ,t#b return = corpor,ns1 ,9ve/;t ,tax ,cr$it-- ,corpor,ns1 = m 9=m,n on 9ve/;t tax cr$its relat+ 6,,sr&,,ed4 ,9ve/;t ,tax ,cr$it ,calcul,n ,g5]al #eb4 ,"u subsec;n #abg7#e71 a taxpay]'s 9ve/;t tax cr$it may 2 us$ 6reduce ! taxpay]'s ,"p ;,i tax o!rwise paya#4 ,! def9i;n ( 89ve/;t tax cr$it0 78,,itc07 9 subsec;n #abg7#i7 provides =! calcul,n (! am.t ( 9ve/;t tax cr$it t is availa# 6a taxpay] at ! 5d (a "picul> tax,n ye>4 ,! 9ve/;t tax cr$it (a taxpay] 9cludes3 --= tax,n ye>s 2g9n+ af ,febru>y #bjjj & 5d+ af #bjjj1 #bj@3p (! #ij ,9ve/;t tax cr$it b#ae excess (a taxpay]'s ,,sr&,,ed qualifi$ exp5diture pool at ! 5d (! ye> ov] ! total ( all xs sup]-all[.e b5efit am.ts 7see p>agraph #da7 =! ye> 9 respect ( ea* prov9ce1 z well z ! total am.t ( #bj@3p ( s* excess det]m9$ =! #aj previ\s ye>s or ! #c subsequ5t ye>s2 --= tax,n ye>s t 2g9 af #aiie1 #bj@3p (! taxpay]'s ,,sr&,,ed qualifi$ exp5diture pool 7see p>agraph #ed7 at ! 5d (! ye>1 (! #aj previ\s ye>s1 or (! #c subsequ5t ye>s2 = tax,n ye>s t 2g9 2f #aiif1 ! specifi$ p]c5tage 7see p>agraph #ec7 (! qualifi$ exp5ditures ! taxpay] made 9 ! ye>1 9 ! #aj previ\s ye>s1 or 9 ! #c subsequ5t ye>s2 & --! specifi$ p]c5tage ( gov]n;t assi/.e1 non-gov]n;t assi/.e or 3tract pay;ts t _h reduc$ ! am.t ( qualifi$ exp5ditures t ! taxpay] repd 9 ! ye>1 9 ! #aj previ\s ye>s1 or 9 ! #c subsequ5t ye>s4 #ia ,9ve/;t tax cr$it c#ae ,"!=e1 9ve/;t tax cr$its may 2 appli$ 6reduce tax 9 ! ye> ! exp5diture or repay;t is made1 any (! #c prior ye>s or any (! #aj subsequ5t ye>s4 ,h["e1 subp>agraph #abg7#e77a77;ii7 prev5ts an am.t ( 9ve/;t tax cr$it at ! 5d (a "picul> ye> f 2+ c>ri$ back 6a previ\s tax,n ye> 6! ext5t t ! 9ve/;t tax cr$it 0 deducti# 9 ! "picul> ye>4 ,= tax,n ye>s t 2g9 2f #aiid1 ! am.t ( 9ve/;t tax cr$it t c reduce ! am.t ( tax o!rwise paya# is subject 6an annual 9ve/;t tax cr$it limit t is def9$ 9 subsec;n #abg7#i74 ,sec;n #abg.a provides t unus$ 9ve/;t tax cr$its ( c]ta9 taxpay]s may 2 refund$ 9 ! ye> ! exp5diture is 9curr$ 7see p>agraphs #he 6#hh74 ,subsec;ns #abg7#bg7 & #abg7#bi7 require a taxpay] 6add an am.t 6! taxpay]'s tax paya# "u ,"p ;,i 9 c]ta9 circum/.es ": a ,,sr&,,ed prop]ty has be5 3v]t$ 6-m]cial use or 4pos$ #ib ,9ve/;t tax cr$it d#ae ( 7)\t hav+ previ\sly be5 3v]t$ 6-m]cial use7 af ,febru>y #bc1 #aiih4 ,^! 9ve/;t tax cr$it recapture provi.ns al apply if ! prop]ty is 9corporat$ 9 ano!r prop]ty : is 3v]t$ 6-m]cial use or is 4pos$ ( )\t hav+ be5 previ\sly 3v]t$ 6-m]cial use4 ,g5],y1 subsec;ns #abg7#bg7 & #abg7#bi7 apply 6prop]ty acquir$ 9 ! taxpay]'s tax,n ye>1 or 9 any (! #aj prec$+ tax,n ye>s1 ": ! 8co/ (! "picul> prop]ty01 z def9$ 0subsec;n #abg7#cb71 0 a qualifi$ exp5diture 7see p>agraph #ee7 6! taxpay]4 ,? wd 9clude exp5ditures (a capital nature on1 or 9 respect (1 ,,sr&,,ed exp5ditures 7see p>agraph #cj7 &=-%>$- use equip;t 7see p>agraph #fb74 ,subsec;n #abg7#bg7 7or #abg7#bh7 = "pn]%ips--see p>agraph #id7 applies :5 a p]c5tage 7! 8,,itc p]c5tage07 (! co/ (! "picul> prop]ty c r1sonably 2 3sid]$ 6be 9clud$ 9 ! taxpay]'s #ic ,9ve/;t tax cr$it e#ae ,,itc at ! 5d (! tax,n ye>4 ,! am.t 6be a4$ 6tax paya# "u ,"p ;,i is ! less] ( --! am.t t c r1sonably 2 3sid]$ 6be 9clud$ 9 -put+ ! taxpay]'s ,,itc 9 respect (! prop]ty1 & --! ,,itc p]c5tage ( ei --! proce$s ( 4posi;n (! prop]ty 7if ! prop]ty is 4pos$ ( 6a p]son :o d1ls at >m's l5g? )! taxpay]71 or --! fair m>ket value (! prop]ty 7in any o!r case74 ,subsec;n #abg7#bi7 applies :5 all or "p (! qualifi$ ,,sr&,,ed exp5diture c r1sonably 2 3sid]$ 6h be5 transf]r$ 0! taxpay] "u subsec;n #abg7#ac74 ,! am.t 6be a4$ 6tax paya# "u ,"p ;,i is ! less] ( --! am.t t c r1sonably 2 3sid]$ 6h be5 9clud$ 9 -put+ ! transf]ee's ,,itc 9 respect (! qualifi$ ,,sr&,,ed exp5diture t 0 ! subject (! transf] 7! 8transf]r$ exp5diture071 & #id ,9ve/;t tax cr$it f#ae --! p]c5tage appli$ 0! transf]ee 9 det]m9+ xs 9ve/;t tax cr$it 9 respect (! transf]r$ exp5diture ( ei --! proce$s ( 4posi;n (! prop]ty 7if ! prop]ty is 4pos$ ( 6a p]son :o d1ls at >m's l5g? )! taxpay]71 or --! fair m>ket value (! prop]ty 7in any o!r case71 less any am.t t has be5 a4$ 6! taxpay]'s tax paya# "u subsec;n #abg7#bg7 9 respect (! prop]ty4 -------------------------------------#af ,"u subsec;n #abg7#cc71 subsec;ns #abg7#bg7 & 7#bi7 d n apply 6a taxpay] :o 4poses ( ,,sr&,,ed prop]ty 6a non->m's l5g? pur*as] if ! pur*as] 3t9ues 6use ! prop]ty all or sub/anti,y all = ,,sr&,,ed4 ,h["e1 "u subsec;n #abg7#cd7 7& subsec;n #abg7#ce7 = "pn]%ips71 non- >m's l5g? pur*as]s :o subsequ5tly resell prop]ty acquir$ f a v5dor & 9 respect ( : subsec;n #abg7#cc7 appli$1 or :o 3v]t x 6-m]cial #ie ,9ve/;t tax cr$it a#af use1 w 2 requir$ 6add 6_! tax o!rwise paya# "u ,"p ;,i =! ye> an am.t ( 8recapture0 (! ,,itc simil> 6! recapture am.t describ$ = subsec;n #abg7#bg74 ,specifi$ ,p]c5tage #ec4 ,subp>agraph 7e77;v7 (! def9i;n ( 8specifi$ p]c5tage0 9 subsec;n #abg7#i7 provides =a rate ( #bj@3p 6be appli$ 6qualifi$ exp5ditures 9 respect ( ,,sr&,,ed4 ,"u p>agraph 7f7 (! def9i;n ( 8specifi$ p]c5tage01 ! specifi$ p]c5tage appli$ 6repay;ts ( gov]n;t or non-gov]n;t assi/.e t reduc$ --! capital co/ 6a taxpay] (a prop]ty "u p>agraph #abg7#aa.a77b71 --! am.t (a qualifi$ exp5diture "u p>agraph #abg7#aa.a77c7 or 7e71 or --! taxpay]'s prescrib$ proxy am.t "u p>agraph #abg7#aa.a77f7 #if ,9ve/;t tax cr$it b#af is ! specifi$ p]c5tage t appli$ 9 respect (! prop]ty1 ! qualifi$ exp5diture or ! prescrib$ proxy am.t4 ,= tax,n ye>s t 2g9 af #aiie1 p>agraph 7f4#a7 (! def9i;n ( 8specifi$ p]c5tage0 9 subsec;n #abg7#i7 provides =a specifi$ p]c5tage ( #bj@3p = repay;ts ( gov]n;t assi/.e1 non- gov]n;t assi/.e or 3tract pay;ts t h reduc$ ! co/ ( an exp5diture "u any ( subsec;ns #abg7#ah7 to 7#bj74 ,,sr&,,ed ,qualifi$ ,exp5diture ,pool #ed4 ,subsec;n #abg7#i7 def9es ! expres.n 8,,sr&,,ed qualifi$ exp5diture pool40 ,at ! 5d (a taxpay]'s tax,n ye>1 x w 2 equal 6! total (! am.t (! taxpay]'s qualifi$ exp5ditures 9curr$ 9 ! ye>1 plus ! am.t ( qualifi$ exp5ditures transf]r$ f a non->m's l5g? taxpay] "u p>agraph #abg7#ac77e71 less ! am.t ( #ig ,9ve/;t tax cr$it c#af qualifi$ exp5ditures transf]r$ 6a non- >m's l5g? taxpay] "u p>agraph #abg7#ac77d7 7see p>agraph #fe74 ,qualifi$ ,exp5ditures ,g5]al #ee4 ,a 8qualifi$ exp5diture0 is def9$ 9 subsec;n #abg7#i7 & 9cludes exp5ditures (a curr5t or (a capital nature on ,,sr&,,ed c>ri$ on 9 ,canada t >e describ$ 9 p>agraph #cg7#a77a7 or subp>agraph #cg7#a77b77;i74 ,h["e1 =! purposes ( subsec;ns #abg7#e7 6#abg7#be7 & sec;n #abg.a1 exp5ditures describ$ 9 p>agraph #cg7#a77a7 t >e unpd on ! "d t is #ahj "ds af ! 5d (! tax,n ye> 9 : !y >e 9curr$ >e deem$ 0subsec;n #abg7#bf7 n 6be 9curr$ until ! "t !y >e actu,y pd4 ,h["e1 subsec;n #abg7#bf7 does n apply 6exp5ditures t >e pd on or 2f ,septemb] #ah1 #aiif4 ,a qualifi$ exp5diture al #ih ,9ve/;t tax cr$it d#af 9cludes an exp5diture = f/ or second t]m %>$-use-equip;t 7see p>agraphs #fa & #fb7 z well z a prescrib$ proxy am.t 7see p>agraph #ef74 ,h["e1 z 4cuss$ 9 p>agraphs #fd 6#gf1 c]ta9 provi.ns may prev5t :at wd o!rwise 2 qualifi$ exp5ditures f qualify+ z s*4 ,= tax,n ye>s 2g9n+ 2f #aiif1 "u p>agraphs #abg7#aa.a77c7 & 7e7 or1 = tax,n ye>s t 2g9 af #aiie1 "u subsec;n #abg7#aa.e71 ! am.t (a qualifi$ exp5diture 7o!r ?an a prescrib$ proxy am.t7 made 0a taxpay] m/ 2 det]m9$ )\t ref];e 6subsec;ns #ac7#g.a7 & #ac7#g.d74 ,9 a4i;n1 = tax,n ye>s t 2g9 af #aiie1 "u subsec;n #abg7#aa.e71 ! am.t (a qualifi$ exp5diture 7o!r ?an a prescrib$ proxy am.t7 m/ 2 det]m9$ af ! applic,n ( subsec;n #abg7#aa.f74 ,! purpose ( ^! rules is 6reduce ! am.t ( an exp5diture 9 respect (! pur*ase ( gds or s]vices f non->m's l5g? "pies 0! am.t 0: ! am.t (! exp5diture =! s]vice1 or ! #ii ,9ve/;t tax cr$it e#af capital co/ 6! taxpay] (! prop]ty1 exce$s ! suppli]'s 8adju/$ s]vice co/10 or 8adju/$ sell+ co/10 z ! case may be4 ,subsec;n #abg7#aa.g7 & #abg7#aa.h7 give m1n+ 6! expres.ns 8adju/$ s]vice co/0 & 8adju/$ sell+ co/40 ,prescrib$ proxy am.t ,g5]al #ef4 ,taxpay]s t elect 6use ! proxy me?od 6det]m9e _! exp5ditures on1 or 9 respect (1 ,,sr&,,ed 7see p>agraph #bc7 _c tr1t any por;n ( g5]al ov]h1d exp5ses z qualifi$ exp5ditures "u p>agraph #cg7#a77a7 2c ^! exp5ses >e n specific,y describ$ 9 subclauses #cg7#h77a77;ii77,b77;i7 to 7,,vi7 & >e "!=e n exp5ditures on1 or 9 respect (1 ,,sr&,,ed4 ,h["e1 9 lieu ( ^! g5]al ov]h1d exp5ses1 ^! taxpay]s c 9clude z a qualifi$ exp5diture an am.t #ajj ,9ve/;t tax cr$it f#af ref]r$ 6z ! prescrib$ proxy am.t4 ,! prescrib$ proxy am.t (a taxpay] is a no;nal am.t t is calculat$ "u subsec;n #bijj7#d7 (! ,regul,ns4 ,! taxpay] does n 9clude ? am.t 9 ! pool ( deducti# ,,sr&,,ed exp5ditures & does n deduct x :5 calculat+ 9come4 ,x repres5ts ! am.t ( ov]h1d exp5ditures relat$ 6,,sr&,,ed & is us$ 6det]m9e ! taxpay]'s 9ve/;t tax cr$its = ^! ov]h1d exp5ditures4 ,! actual ov]h1d exp5ses ! prescrib$ proxy am.t repres5ts >e ord9>y busi;s exp5ses t may 2 deduct$ 9 ! ye>4 ,al? ! prescrib$ proxy am.t is n 9clud$ 9 ! pool ( deducti# ,,sr&,,ed exp5ditures1 any 9ve/;t tax cr$it ! taxpay] claim$ 9 a previ\s ye> t c r1sonably 2 3sid]$ 6be 9 respect (a prescrib$ proxy am.t (a previ\s ye> w reduce ! pool ( deducti# ,,sr&,,ed exp5ditures "u p>agraph #cg7#a77e7 z 4cuss$ 9 p>agraph #db4 #aja ,sal>y base #ag #eg4 ,subsec;n #bijj7#d7 (! ,regul,ns provides t1 subject 6! ov]all cap describ$ 9 p>agraph #fj1 ! prescrib$ proxy am.t =a tax,n ye> is #fe@3p (! sal>y base4 ,! sal>y base is ! total (! eligi# sal>ies & wages (! taxpay]'s employees :o >e directly 5gag$ 9 ,,sr&,,ed c>ri$ on 9 ,canada & t c r1sonably 2 3sid]$ 6relate 6s* "w hav+ reg>d 6! "t sp5t 0! employees on ! ,,sr&,,ed4 ,h["e1 "u subsec;n #bijj7#i7 (! ,regul,ns1 ! am.t ( an employee's sal>ies & wages t ! taxpay] c use 9 det]m9+ ! sal>y base _c 9clude an am.t describ$ 9 sec;n #f or #g1 an am.t deem$ "u subsec;n #gh7#d7 6h be5 9curr$1 remun],n bas$ on pr(its1 or bonuses4 ,9 a4i;n1 subsec;ns #bijj7#g7 & #bijj7#h7 (! ,regul,ns may fur!r re/rict ! am.t ( sal>ies & wages t ! taxpay] c take 96a3.t =a 8specifi$ employee0 7see p>agraph #eh74 #ajb ,specifi$ employees a#ag #eh4 ,"u subsec;n #bijj7#g7 (! ,regul,ns1 ! am.t t ! taxpay] c 9clude 9 ! sal>y base =a specifi$ employee 7see p>agraph #aa7 is re/rict$ 6! less] ( #ge@3p (! specifi$ employee's sal>y & wages 7exclud+ taxa# b5efits1 remun],n bas$ on pr(its1 & bonuses7 & #b.e "ts ! ,,ympe 7see p>agraph #aa7 =! cal5d> ye> 9 : ! taxpay]'s tax,n ye> 5ds prorat$ =! numb] ( "ds ( employ;t 9 ! ye>4 ,"! is no pror,n =! "t dur+ ! ye> t ! employee is n a specifi$ employee4 ,specifi$ employees employ$ 0an associat$ corpor,n #ei4 ,"u subsec;n #bijj7#h7 (! ,regul,ns1 if a specifi$ employee (a corpor,n is al an employee ( an associat$ corpor,n1 ! am.t ( sal>y & wages t c 2 9clud$ 9 ! sal>y base ( ei or bo? corpor,ns may 2 re/rict$ #ajc ,9ve/;t tax cr$it b#ag fur!r4 ,subsec;n #bijj7#h7 (! ,regul,ns re/ricts ! am.t ( sal>ies & wages t ! taxpay] t is a corpor,n c 9clude 9 xs sal>y base = an 9dividual :o is a specifi$ employee (! corpor,n if1 9 xs tax,n ye> 5d+ 9 a "picul> cal5d> ye>1 ! corpor,n is associat$ ) ano!r corpor,n t has employ$ ! same 9dividual 9 xs tax,n ye> 5d+ 9 t "picul> cal5d> ye>4 ,! total am.t ( sal>y & wages 9 respect (! employee t c 2 9clud$ 9 ! sal>y base may n exce$ #b.e "ts ! ,,ympe & m/ 2 %>$ 2t ! associat$ corpor,ns4 ,"u subsec;n #bijj7#aj7 (! ,regul,ns1 an 9dividual relat$ 6a "picul> corpor,n is deem$1 =! purposes ( subsec;n #bijj7#h7 (! ,regul,ns1 6be a corpor,n associat$ )! "picul> corpor,n4 ,a "pn]%ip1 any memb] ( : is an 9dividual relat$ 6a "picul> corpor,n or is a corpor,n associat$ )a "picul> corpor,n1 is al deem$ = ^! purposes 6be a corpor,n #ajd ,9ve/;t tax cr$it c#ag associat$ )! "picul> corpor,n "u subsec;n #bijj7#aj7 (! ,regul,ns4 ,ov]all cap #fj4 ,! prescrib$ proxy am.t (a taxpay] =a tax,n ye> 9 respect (a busi;s = : ! taxpay] has elect$ "u clause #cg7#h77a77;ii77,b7 is subject 6an ov]all cap "u subsec;n #bijj7#f7 (! ,regul,ns4 ,! prescrib$ proxy am.t _c exce$ ! total ( all am.ts deduct$ :5 calculat+ ! taxpay]'s 9come =! ye> f ! busi;s1 o!r ?an am.ts 9curr$ = an \tlay or exp5se made or 9curr$ =! use (1 or ! "r 6use1 a build+ 7o!r ?an a prescrib$ special-purpose build+7 & am.ts deduct$ "u sec;ns #bj1 #bd1 #bf1 #cj1 #cb1 #cg1 #ff 6#ff.h & #ajd4 ,if a taxpay]1 hav+ elect$ "u clause #cg7#h77a77;ii77,b71 c>ries on m ?an "o busi;s1 ! taxpay] %d add ! am.ts specifi$ "u subsec;n #bijj7#f7 (! ,regul,ns t 7 deduct$ :5 #aje ,9ve/;t tax cr$it d#ag calculat+ ! taxpay]'s 9come =! ye> f all busi;ses4 ,g5],y1 ! ov]all cap w n op]ate 6re/rict ! prescrib$ proxy am.t if ! taxpay] has deduct$ m ?an 4#fe ( non-,,sr&,,ed exp5ses 7o!r ?an r5t 9 respect (a build+1 capital co/ all[.e1 9t]e/ & f9anc+ co/s1 all[.e = d\bt;l a3.ts1 & all o!r am.ts deducti# "u sec;n #bj7 = ea* 4#ajj ( eligi# sal>y 9clud$ 9 ! sal>y base4 ,%>$-use-equip;t ,g5]al #fa4 ,! def9i;n (a 8qualifi$ exp5diture0 9 subsec;n #abg7#i7 9cludes an exp5diture 9 respect ( f/ t]m %>$-use- equip;t & second t]m %>$-use-equip;t4 ,=! purposes (! def9i;n ( 89ve/;t tax cr$it0 9 subsec;n #abg7#i71 ! am.t (a qualifi$ exp5diture 9 respect ( %>$- use-equip;t1 "u p>agraph #abg7#aa.a77e7 = tax,n ye>s t #ajf ,9ve/;t tax cr$it e#ag 2g9 2f #aiif1 is equal 6"o-qu>t] (! capital co/ ( f/ or second t]m %>$- use-equip;t less ! am.t ( any relat$ assi/.e or 3tract pay;t 7see p>agraph #gg74 ,h["e1 = tax,n ye>s t 2g9 af #aiie1 =! purposes (! def9i;n ( 8qualifi$ exp5diture0 9 subsec;n #abg7#i71 p>agraph #abg7#aa.e77b7 provides t ! am.t ( an exp5diture = f/ or second t]m %>$-use-equip;t is deem$ 6be "o-qu>t] (! capital co/ (! equip;t det]m9$ z if no am.t 7 a4$ 2c ( sec;n #ba1 )\t ref];e 6subsec;ns #ac7#g.a7 & #ac7#g.d71 & af ! applic,n ( subsec;n #abg7#aa.f7 7see p>agraph #ee74 ,! reduc;n (! qualifi$ exp5ditures "u subsec;ns #abg7#ah7 6#abg7#bj7 7see p>agraph #gg7 = assi/.e or 3tract pay;ts = s* %>$-use-equip;t reduces ! am.t ( qualifi$ exp5ditures "u p>agraph 7h7 (! def9i;n ( 8qualifi$ exp5diture0 9 subsec;n #abg7#i74 #ajg ,f/ & second t]m %>$-use- f#ag equip;t #fb4 ,f/ & second t]m %>$-use-equip;t >e def9$ 9 subsec;n #abg7#i74 ,f/ t]m %>$-use-equip;t (a taxpay] m1ns deprecia# prop]ty (! taxpay] 7o!r ?an prescrib$ deprecia# prop]ty--see p>agraph #fc7 acquir$ af ,decemb] #b1 #aiib1 t is us$ 0! -------------------------------------#ah taxpay]1 dur+ xs op]at+ "t 7see p>agraph #ca7 9 ! 8f/ p]iod10 prim>ily 7m ?an #ej@3p7 =! prosecu;n ( ,,sr&,,ed 9 ,canada4 ,! 8f/ p]iod0 is ! p]iod t />ts at ! "t ! prop]ty 0 acquir$1 & availa# = use 7see p>agraph #gf71 0! taxpay]1 & 5ds at ! 5d (! taxpay]'s f/ tax,n ye> t o3urs at l1/ #ab mon?s af t "t4 ,pursuant 6p>agraph 7c7 (! def9i;n ( 8qualifi$ exp5diture0 9 subsec;n #abg7#i7 & subp>agraph #bijb7b77;iii7 (! ,regul,ns1 prop]ty m/ n h be5 us$1 or acquir$ = use or l1se1 = any purpose :at"e 2f x #ajh ,9ve/;t tax cr$it a#ah 0 acquir$ 0! taxpay]4 ,second t]m %>$- use-equip;t (a taxpay] m1ns prop]ty (! taxpay] t 0 f/ t]m %>$-use- equip;t & t is us$ 0! taxpay]1 dur+ xs op]at+ "t 9 ! 8second p]iod10 prim>ily 7m ?an #ej@3p7 =! prosecu;n ( ,,sr&,,ed 9 ,canada4 ,! 8second p]iod0 is ! p]iod t />ts at ! "t ! prop]ty 0 acquir$1 & availa# = use 7see p>agraph #gf71 0! taxpay]1 & 5ds at ! 5d (! taxpay]'s f/ tax,n ye> t o3urs at l1/ #bd mon?s af t "t4 ,h["e1 bo? f/ & second t]m %>$- use-equip;t d n 9clude ,,gpoef 7see p>agraph #be74 ,prescrib$ deprecia# prop]ty #fc4 ,prop]ty t is prescrib$ deprecia# prop]ty _c 2 8f/ t]m %>$-use-equip;t0 & "!=e n 8second t]m %>$-use-equip;t01 & 3sequ5tly does n qualify = 9ve/;t tax cr$its4 ,"u subsec;n #bijj7#aa7 (! ,regul,ns1 a build+ or a l1sehold 9t]e/ 9 a build+ is a prescrib$ #aji ,9ve/;t tax cr$it b#ah deprecia# prop]ty4 ,al1 :5 a prop]ty1 or "p (a prop]ty1 is acquir$ 0a taxpay] :o 9t5ds 6use x 9 ! prosecu;n ( ,,sr&,,ed dur+ ! assembly1 3/ruc;n or -mis.n+ (a facil;y1 plant or l9e = -m]cial purposes1 ! prop]ty1 or "p (a prop]ty1 is a prescrib$ deprecia# prop]ty if1 at ! "t x 0 acquir$1 ! taxpay] or a p]son relat$ 6! taxpay] 9t5d$3 --t x wd 2 us$ dur+ xs op]at+ "t 9 xs expect$ use;l life prim>ily = purposes o!r ?an ,,sr&,,ed2 or --t xs value wd 2 3sum$ prim>ily 9 "w o!r ?an ,,sr&,,ed4 ,! det]m9,n ( :e!r a "picul> prop]ty is a prescrib$ deprecia# prop]ty is made at ! "t ! prop]ty is acquir$4 ,6make ? det]m9,n1 ! 9t5d$ use (! prop]ty 9 ! ye> 9 : ! exp5diture 0 made z well z ov] xs expect$ use;l life m/ 2 3sid]$4 ,al? ! subsequ5t use (a prop]ty may di6] f ! taxpay]'s 9t5;n at ! "t ! exp5diture 0 #aaj ,9ve/;t tax cr$it c#ah made1 if ! taxpay] c support t1 at ! "t x 0 acquir$1 ! prop]ty 0 9t5d$ 6be us$ prim>ily = ,,sr&,,ed "w ov] xs expect$ use;l life1 ! prop]ty does n 2come a prescrib$ deprecia# prop]ty4 ,exclu.ns ,exp5ditures ren\nc$ or n fil$ on prescrib$ =m #fd4 ,exp5ditures t >e deducti# "u subsec;n #cg7#a71 exp5ditures = %>$- use-equip;t & prescrib$ proxy am.ts may 2 prev5t$ f 2+ qualifi$ exp5ditures =! purposes (! 9ve/;t tax cr$it if !y >e a 8prescrib$ exp5diture0 describ$ 9 sec;n #bijb (! ,regul,ns 7see p>agraphs #fg 6#gd71 or an exp5diture t has be5 ren\nc$ =! purposes ( ,"p ,,viii tax z 4cuss$ 9 p>agraph #dc4 ,9 a4i;n1 except ": subsec;n #abg7#aa.d7 applies1 p>agraph 7e7 (! def9i;n ( 8qualifi$ #aaa ,9ve/;t tax cr$it d#ah exp5diture0 9 subsec;n #abg7#i7 excludes exp5ditures 9 respect ( : ! taxpay] does n file a prescrib$ =m 7,=m ,t#bjch = 9dividuals & ,s*$ule #ca (! ,t#b return = corpor,ns7 0a c]ta9 date4 ,= exp5ditures 9curr$ 9 tax,n ye>s t 2g9 2f #aiif1 ! =m m/ 2 fil$ on or 2f ! fil+-due date 7see p>agraph #f7 =! ye> foll[+ ! ye> 9 : ! exp5diture 0 9curr$4 ,= exp5ditures t wd 2 9curr$ 9 a tax,n ye> t 2g9s af #aiie if ! ,act 7 r1d )\t ref];e 6subsec;ns #abg7#bf7 & #gh7#d71 ! =m m/ 2 fil$ on or 2f ! "d t is #ab mon?s af ! taxpay]'s fil+-due date =! "picul> tax,n ye>4 ,h["e1 = tax,n ye>s prior 6#aiig1 subsec;n #abg7#aa.d7 provides t ? fil+ require;t does n apply 6an exp5diture t has be5 reclassifi$ 0! ,m9i/] z an exp5diture 9 respect ( ,,sr&,,ed on an assess;t (! taxpay]'s tax paya#1 or on a det]m9,n t no tax is paya#1 0! taxpay] "u ,"p ;,i =! ye>4 ,=! #aiig & #aab ,9ve/;t tax cr$it e#ah subsequ5t tax,n ye>s1 subsec;n #abg7#aa.d7 is rep1l$ & subsec;n #cg7#ab7 deems an exp5diture 9 respect ( : ! taxpay] has n met ! fil+ require;t 9 subsec;n #cg7#aa7 n 6be an exp5diture on1 or 9 respect (1 ,,sr&,,ed4 ,= tax,n ye>s t 2g9 af #aiie1 ! exclu.n ( exp5ses n fil$ on a prescrib$ =m 0a c]ta9 date is provid$ 0p>agraph 7m7 (! def9i;n ( 89ve/;t tax cr$it10 9 subsec;n #abg7#i71 & p>agraph 7e7 (! def9i;n ( 8qualifi$ exp5diture0 9 subsec;n #abg7#i7 has be5 rep1l$4 ,exp5ditures = ,,sr&,,ed 0non- >m's l5g? p]=m] #fe4 ,= tax,n ye>s t 2g9 af #aiie1 an exp5diture 7o!r ?an an exp5diture = sal>y or wages ( an employee (! taxpay]7 9curr$ = ,,sr&,,ed p]=m$ 0a p]son or "pn]%ip 6: ! exp5diture is pd or paya# &) : ! pay] is n d1l+ #aac ,9ve/;t tax cr$it f#ah at >m's l5g?1 is n a qualifi$ exp5diture 6! pay] "u p>agraph 7f7 (! def9i;n ( 8qualifi$ exp5diture0 9 subsec;n #abg7#i74 ,9 a4i;n1 subsec;n #abg7#bd7 prev5ts taxpay]s f us+ an >m's l5g? "py 6circumv5t ? rule4 ,:5 a p]son or "pn]%ip 7,a7 3tracts ) an >m's l5g? "py =! p]=m.e ( ,,sr&,,ed1 &! ,,sr&,,ed is !n subcontract$ 0t "py 6ano!r p]son or "pn]%ip 7,b7 t does n d1l at >m's l5g? ) ;,a1 & "o (! ma9 purposes (! >range;t c r1sonably 2 3sid]$ 6be 6cause ! am.t pd or -------------------------------------#ai paya# by ;,a 6be a qualifi$ exp5diture1 subsec;n #abg7#bd7 deems ? am.t n 6be a qualifi$ exp5diture4 ,:5 ? anti-avoid.e rule does n apply1 & an am.t is rcvd = ,,sr&,,ed f a p]son or "pn]%ip ) : ! recipi5t is n d1l+ at >m's l5g?1 ! am.t rcvd or receiva# 0! p]=m] 9 s* circum/.es w n 2 a 3tract pay;t 7see p>agraph #gh74 ,h["e1 ! qualifi$ exp5ditures t ! #aad ,9ve/;t tax cr$it a#ai recipi5t 9curs may 2 transf]r$ 6! pay] "u subsec;n #abg7#ac74 ,a "pn]%ip may n 2 a "py 6s* a transf] s9ce "u p>agraph #abg7#h77a7 a "pn]%ip is n 3sid]$ 6be a p]son =! purpose ( subsec;n #abg7#ac74 ,6transf] qualifi$ exp5ditures 2t non->m's l5g? taxpay]s "u subsec;n #abg7#ac71 ! two "pies m/ file a jo9t agree;t 9 a3ord.e ) subsec;n #abg7#ae74 ,h["e1 =! purposes ( det]m9+ a taxpay]'s refunda# 9ve/;t tax cr$it 7see p>agraph #hf71 subsec;n #abg7#ad7 pres]ves ! nature 7:e!r curr5t or capital7 (a transf]r$ exp5diture4 ,"u p>agraph #abg7#ac77d71 ! qualifi$ exp5ditures transf]r$ 9 a "picul> ye> >e exclud$ f ! recipi5t's ,,sr&,,ed qualifi$ exp5diture pool at ! 5d (! ye> & >e 9clud$ 9 ! pay]'s ,,sr&,,ed qualifi$ exp5diture pool "u p>agraph #abg7#ac77e7 =! pay]'s f/ tax,n ye> t 5ds at1 or af1 ! "picul> ye>4 ,=a "picul> tax,n ye>1 ! recipi5t c *oose 6transf] 6! pay] "u #aae ,9ve/;t tax cr$it b#ai p>agraph #abg7#ac77c7 ! am.t t wd1 if ! pay] &! recipi5t 7 d1l+ ) ea* o!r at >m's l5g? 7see ! curr5t v].n ( ,,it-#dai1 ,m1n+ ( ,>m's ,l5g?71 2 a 3tract pay;t =! p]=m.e ( ,,sr&,,ed on 2half (! pay] t is pd on1 or 2f1 ! "d t is #ahj "ds af ! 5d (! "picul> tax,n ye> 9 respect ( ei --a qualifi$ exp5diture t ! recipi5t wd h 9curr$ 9 ! ye> 7if ! ,act 7 r1d )\t ref];e 6subsec;ns #abg7#bf7 & #gh7#d77 & pd 0! "d t is #ahj "ds af ! 5d (! ye> t is 9 respect ( t por;n (! ,,sr&,,ed t 0 p]=m$ at a "t :5 ! recipi5t did n d1l at >m's l5g? )! pay]2 or --an am.t 9 respect (! ,,sr&,,ed a4$ "u subsec;n #abg7#ac7 6! recipi5t's ,,sr&,,ed qualifi$ exp5diture pool at ! 5d (! ye>4 ,h["e1 ! recipi5t _c *oose 6transf] 6! pay] m ?an ! am.t t ! recipi5t's ,,sr&,,ed qualifi$ exp5diture pool wd h be5 at ! 5d (! ye> _h x n be5 #aaf ,9ve/;t tax cr$it c#ai = ? transf]4 ,%d ! recipi5t attempt 6d s1 subsec;n #abg7#ac7 provides t ! am.t t c 2 transf]r$ is nil4 ,subsec;n #abg7#af7 provides an anti-avoid.e rule t reduces 6nil ! a4i;n 9 ! pay]'s ,,sr&,,ed qualifi$ exp5diture pool =! transf]r$ exp5ditures :5 ! pay] &! recipi5t d n d1l at >m's l5g? z a result (a transac;n1 ev5t or >range;t1 or a s]ies ( transac;ns1 ev5ts or >range;ts1 ! pr9cipal purpose ( : 0 65a# ! pay] &! recipi5t 65t] 96! agree;t "u subsec;n #abg7#ac74 ,non-taxa# suppli] #ff4 ,"u p>agraph 7g7 (! def9i;n ( 8qualifi$ exp5diture0 9 subsec;n #abg7#i71 = tax,n ye>s t 2g9 af #aiie1 an exp5diture describ$ 9 p>agraph #cg7#a77a71 o!r ?an an exp5diture on ,,sr&,,ed directly "utak5 0! taxpay]1 is n a qualifi$ exp5diture if x is pd or paya# 0! taxpay] to1 or =! #aag ,9ve/;t tax cr$it d#ai b5efit (1 a p]son or "pn]%ip t is n a 8taxa# suppli]0 9 respect (! exp5diture4 ,a 8taxa# suppli]0 9 respect ( an am.t is def9$ 9 subsec;n #abg7#i7 69clude a p]son resid5t 9 ,canada or a ,canadian "pn]%ip4 ,x al 9cludes a non-resid5t p]son1 &a "pn]%ip t is n a ,canadian "pn]%ip1 0: ! am.t 0 paya#1 or 0or = :om ! am.t 0 receiva#1 9 ! c\rse ( c>ry+ on a busi;s "? a p]man5t e/abli%;t 7z def9$ 0regul,n7 9 ,canada4 ,prescrib$ exp5ditures (a curr5t nature #fg4 ,prescrib$ exp5ditures )9 ! m1n+ ( sec;n #bijb (! ,regul,ns >e n qualifi$ exp5ditures &1 "!=e1 d n e>n 9ve/;t tax cr$its4 ,prescrib$ exp5ditures 9clude exp5ditures (a curr5t nature 9curr$ 0a taxpay] =! g5]al adm9i/r,n or manage;t (a busi;s1 9clud+3 #aah ,9ve/;t tax cr$it e#ai 7a7 adm9i/rative sal>ies or wages & relat$ b5efits =a p]son ^: duties >e n all or sub/anti,y all direct$ 6! prosecu;n ( ,,sr&,,ed1 except 6! ext5t t s* exp5ditures >e directly attributa# 6! prosecu;n ( ,,sr&,,ed z det]m9$ 0subsec;n #bijj7#b7 or 7#c7 (! ,regul,ns 7see p>agraphs #ai 6#ba72 7b7 a legal or a3.t+ fee2 7c7 9t]e/ & o!r f9anc+ co/s describ$ 9 any ( p>agraphs #bj7#a77c7 to 7g7 (! ,act2 7d7 an 5t]ta9;t exp5se2 7e7 an adv]tis+ or sell+ exp5se2 7f7 a 3v5;n exp5se &1 af ,janu>y #aa1 #aiie1 a 3f];e exp5se2 7g7 a due or fee = memb]%ip 9 a sci5tific or te*nical society or organiz,n2 & 7h7 a f9e or p5alty4 ,prescrib$ exp5ditures al 9clude curr5t exp5ditures =! ma9t5.e & #aai ,9ve/;t tax cr$it f#ai upkeep ( premises1 facilities or equip;t 6! ext5t t s* exp5ditures >e n attributa# 6! prosecu;n ( ,,sr&,,ed4 #fh4 ,a "picul> exp5diture describ$ 9 p>agraph #fg w n 2 a prescrib$ exp5diture if x is 9curr$1 9 tax,n ye>s 2g9n+ 2f ,febru>y #bc1 #aiid1 0a taxpay] t derives all or sub/anti,y all ( xs rev5ue f ! prosecu;n ( ,,sr&,,ed c>ri$ on 0x 7see p>agraph #ce74 ,= example1 "u clause #bijb7a77;i77,c7 (! ,regul,ns1 an exp5diture = 9t]e/ made 0a taxpay] w norm,y n 2 a qualifi$ exp5diture =! purposes ( subsec;n #abg7#e7 ev5 if ! exp5diture is 9clud$ 9 ! pool ( deducti# ,,sr&,,ed exp5ditures "u subsec;n #cg7#a74 -------------------------------------#bj ,h["e1 if a taxpay] derives all or sub/anti,y all ( xs rev5ue f ! prosecu;n ( ,,sr&,,ed1 s* an exp5diture 9curr$ 9 tax,n ye>s 2g9n+ 2f ,febru>y #bc1 #aiid w n 2 #abj ,9ve/;t tax cr$it a#bj prescrib$1 &! taxpay] may 2 5titl$ 6an 9ve/;t tax cr$it = t exp5diture4 ,a taxpay] ^: rev5ue is deriv$ all or sub/anti,y all f ! prosecu;n ( ,,sr&,,ed or f ! sale ( "rs in1 or >is+ \ (1 ,,sr&,,ed c>ri$ on 0! taxpay] is "h9af ref]r$ 6z a sole- purpose ,,sr&,,ed p]=m]4 ,sole-purpose ,,sr&,,ed p]=m] #fi4 ,9 det]m9+ :e!r a "picul> taxpay] is a sole-purpose ,,sr&,,ed p]=m]1 3sid],n is giv5 n only 6! taxpay]'s rev5ue 9 a "picul> tax,n ye> b al 6! patt]n e/abli%$ ov] a numb] ( tax,n ye>s4 ,h["e1 s* patt]n may n 2 relevant if ! taxpay]'s op],ns h *ang$ significantly4 ,9 a4i;n1 =a />t-up op],n1 ! mann] 9 : ! taxpay] is propos+ 6derive xs 9come w 2 tak5 96a3.t4 ,3sequ5tly1 if a taxpay] 9t5ds 6manufacture1 process & sell a product1 or o!rwise plans #aba ,9ve/;t tax cr$it b#bj 6actively exploit any te*nology develop$1 o!r ?an "? ! sale ( "rs 6! product or te*nology1 ! taxpay] wd n 2 3sid]$ a sole-purpose ,,sr&,,ed p]=m]4 #gj4 ,a taxpay] t qualifies z a sole- purpose ,,sr&,,ed p]=m] may -promise xs /atus z s* if ! taxpay] rcvs significant o!r 9come t is n deriv$ f ! prosecu;n ( ,,sr&,,ed or ! sale ( "rs in1 or >is+ \ (1 ,,sr&,,ed4 ,= example1 9t]e/ 9come t repres5ts a significant por;n (a taxpay]'s rev5ues may result 9 ! loss (! taxpay]'s /atus z a sole-purpose ,,sr&,,ed p]=m]4 ,h["e1 :5 ! 9t]e/ 9come is deriv$ f ! tempor>y 9ve/;t ( funds t >e 6be us$ 9 ,,sr&,,ed "w &! funds >e sp5t on qualify+ rese>* )9 a r1sona# "t1 ! 9t]e/ 9come w g5],y n result 9 a loss ( s* /atus4 #ga4 ,! exp5ses (a sole-purpose ,,sr&,,ed p]=m] >e n necess>ily all qualifi$ ,,sr&,,ed exp5ditures4 ,z 9dicat$ 9 p>agraph #ee1 a #abb ,9ve/;t tax cr$it c#bj qualifi$ exp5diture 7o!r ?an a prescrib$ proxy am.t or = %>$-use- equip;t7 z def9$ 9 subsec;n #abg7#i71 m/ f/ 2 deducti# "u subsec;n #cg7#a74 ,3sequ5tly1 exp5ditures 9curr$ 0a sole-purpose ,,sr&,,ed p]=m] = "w t does n 3/itute ,,sr&,,ed1 s* z m>ket rese>* or sales promo;n1 >e n qualifi$ exp5ditures 2c !y >e n exp5ditures on ,,sr&,,ed4 ,prescrib$ exp5ditures (a capital nature #gb4 ,prescrib$ exp5ditures al 9clude c]ta9 exp5ditures (a capital nature4 ,an exp5diture 6acquire prop]ty 2f ,decemb] #c1 #aiib1 t is nei 9curr$ =1 nor is all or sub/anti,y all attributa# to1 ! prosecu;n1 or 6! provi.n ( premises1 facilities or equip;t =! prosecu;n1 ( ,,sr&,,ed 7see p>agraph #ch7 is a prescrib$ exp5diture4 ,af ,decemb] #b1 #abc ,9ve/;t tax cr$it d#bj #aiib1 an exp5diture 6acquire prop]ty is a prescrib$ exp5diture except if x is an exp5diture t1 at ! "t x 0 9curr$1 0 --= f/ or second t]m %>$-use-equip;t1 or --=! provi.n ( premises1 facilities or equip;t =! prosecu;n ( ,,sr&,,ed1 & x 0 9t5d$ at t "t ei --t !y wd 2 us$ dur+ all or sub/anti,y all ( _! op]at+ "t 9 _! expect$ use;l life 9 ! prosecu;n ( ,,sr&,,ed 9 ,canada1 or --t all or sub/anti,y all ( _! value wd 2 3sum$ 9 ! prosecu;n ( ,,sr&,,ed 9 ,canada4 ,exp5ditures =! acquisi;n ( qualifi$ prop]ty1 )9 ! m1n+ assign$ 0subsec;n #abg7#i71 >e al prescrib$ exp5ditures "u subp>agraph #bijb7b77;ii7 (! ,regul,ns4 ,fur!rmore1 exp5ditures =! acquisi;n ( prop]ty t has be5 us$ or acquir$ = use or l1se1 = any purpose :at"e 2f ! taxpay] acquir$ x >e #abd ,9ve/;t tax cr$it e#bj prescrib$ exp5ditures "u subp>agraph #bijb7b77;iii7 (! ,regul,ns4 ,6be 3sid]$ n 6h be5 us$1 ! prop]ty m/ n only 2 new :5 ! taxpay] acquir$ x1 b x m/ n h be5 acquir$ = use or l1se or = any purpose :at"e 0any previ\s [n]4 ,z a result ( ^! require;ts1 if a prop]ty t has be5 us$ or 0 acquir$ =a use 7ev5 ?\< unus$7 is transf]r$ 6a new [n]1 eligibil;y =! 9ve/;t tax cr$it is n transf]a#4 ,h["e1 :5 a lessor acquires new prop]ty : has yet 6be l1s$ & !n jo9tly elects "u sec;n #af.a )! f/ lessee (! prop]ty1 ! prop]ty w n 2 3sid]$ 6h be5 us$ or acquir$ = use or l1se1 = any purpose :at"e 2f ! lessee acquir$ ! l1sehold 9t]e/ 9 ! prop]ty4 ,! co/ (a piece ( equip;t t is us$ regul>ly = demon/r,n purposes is 3sid]$ 6be a prescrib$ exp5diture4 ,h["e1 new equip;t t is demon/rat$ = or te/$ 0a prospective pur*as] ( t "picul> piece ( equip;t wd n norm,y 2 3sid]$ 6h be5 us$ =a purpose4 #abe ,o!r prescrib$ exp5ditures f#bj #gc4 ,exp5ditures made 6acquire "rs in1 or >is+ \ (1 ,,sr&,,ed & ,,sr&,,ed exp5ditures 9 respect ( : an am.t is deducti# "u sec;n #aaj.a or #aah.a (! ,act >e al prescrib$ exp5ditures "u p>agraphs #bijb7c7 & #bijb7d71 respectively1 (! ,regul,ns4 #gd4 ,"u p>agraph #bijb7e7 (! ,regul,ns1 an exp5diture (a curr5t or (a capital nature is a prescrib$ exp5diture 6! ext5t ! taxpay] mak+ ! exp5diture has rcvd or is 5titl$ 6rcv a reimburse;t =! exp5diture f a p]son resid5t 9 ,canada o!r ?an 7a7 ,h] ,maje/y 9 "r ( ,canada or a prov9ce1 or an ag5t "!(2 -------------------------------------#ba 7b7 a corpor,n1 -mis.n or associ,n t is 3troll$1 directly or 9directly 9 any mann] :at"e1 0a p]son describ$ 9 7a72 or #abf ,9ve/;t tax cr$it a#ba 7c7 a municipal;y 9 ,canada or a municipal or public body p]=m+ a func;n ( gov]n;t 9 ,canada4 ,9 a4i;n1 an exp5diture = : a taxpay] has rcvd or is 5titl$ 6rcv a reimburse;t f a p]son t is n resid5t 9 ,canada w al 3/itute a prescrib$ exp5diture 6! ext5t t ! reimburse;t is deducti# 0! non-resid5t 9 -put+ ! non- resid5t's taxa# 9come e>n$ 9 ,canada = any tax,n ye>4 ,acly1 :5 ! non-resid5t _c deduct ! reimburse;t1 ! relat$ exp5diture (! taxpay] is n a prescrib$ exp5diture4 ,al? ! det]m9,n ( :e!r a taxpay] has rcvd or is 5titl$ 6rcv a reimburse;t is g5],y a "q ( fact dep5d5t on ! 3tractual >range;ts t exi/ 2t ! "pies1 a pay;t t a taxpay] has rcvd or is 5titl$ 6rcv "u a 8fix$- fee0 or simil> 3tractual >range;t wd n norm,y 3/itute a reimburse;t4 ,h["e1 a pay;t "u an >range;t t specific,y #abg ,9ve/;t tax cr$it b#ba provides =! repay;t (a taxpay]'s exp5ditures w g5],y 2 a reimburse;t4 ,exp5ditures 9curr$ 9 ! c\rse ( e>n+ exempt 9come #ge4 ,! def9i;n ( 89ve/;t tax cr$it0 9 subsec;n #abg7#i7 al excludes a qualifi$ exp5diture made 9 ! c\rse ( e>n+ 9come f a busi;s if any 9come f t busi;s is exempt f ,"p ;,i tax4 ,h["e1 s* an exp5diture is except$ f ? rule if x 0 made 2f #aiib1 "u a writt5 agree;t 5t]$ 96on or 2f ,july #ac1 #aiij1 or if x 0 made =! purpose ( -plet+ ! 3/ruc;n ( prop]ty t 0 "u 3/ruc;n by1 or on 2half (1 ! taxpay] on or 2f ,july #ac1 #aiij4 ,prop]ty availa# = use #gf4 ,=! purposes ( sec;ns #abg & #abg.a1 subsec;n #abg7#aa.b7 provides t an exp5diture 6acquire #abh ,9ve/;t tax cr$it c#ba prop]ty describ$ 9 subp>agraph #cg7#a77b77;i7 is deem$ n 6h be5 made until ! prop]ty 2comes availa# = use 0! taxpay]1 det]m9$ )\t ref];e 6p>agraphs #ac7#bg77c7 & #ac7#bh77d74 ,= prop]ty acquir$ & exp5ditures 9curr$ af ,febru>y #ba1 #aiid1 subsec;n #abg7#aa.b7 w 2 relevant 9 apply+ sec;n #abg.a & subsec;ns #abg7#e71 7#g7 & 7#h71 & p>agraph 7a7 (! def9i;n ( 89ve/;t tax cr$it0 9 subsec;n #abg7#i71 &= tax,n ye>s t 2g9 af #aiie1 9 apply+ p>agraph 7a4#a7 ( t def9i;n4 ,"u subsec;n #abg7#aa.b71 a taxpay] t has acquir$ f/ t]m %>$-use- equip;t af ,febru>y #ba1 #aiid1 w al 2 deem$ n 6h acquir$ ! equip;t 2f x is 3sid]$ 6h 2come availa# = use 0! taxpay]1 det]m9$ )\t ref];e 6p>agraphs #ac7#bg77c7 & #ac7#bh77d74 #abi ,gov]n;t ,assi/.e1 ,non- d#ba ,gov]n;t ,assi/.e & ,3tract ,pay;ts ,g5]al #gg4 ,= tax,n ye>s t 2g9 2f #aiif ,= purposes ( calculat+ a taxpay]'s 9ve/;t tax cr$it1 p>agraphs #abg7#aa.a77c7 & 7e7 specify t ! am.t (a qualifi$ exp5diture1 o!r ?an a prescrib$ proxy am.t1 made 0a taxpay] m/ 2 det]m9$ )\t ref];e 6subsec;ns #ac7#g.a7 & #ac7#g.d74 ,h["e1 "u p>agraph #abg7#aa.a77c71 qualifi$ exp5ditures 9 respect ( ,,sr&,,ed m/ 2 reduc$ 0! am.t ( any gov]n;t assi/.e1 non-gov]n;t assi/.e 7see p>agraph #dj7 or 3tract pay;t 7see p>agraph #gh7 t c r1sonably 2 3sid]$ 6be 9 respect (! exp5ditures t1 at ! "t ( fil+ (! taxpay]'s tax return =! ye> 9 : ! exp5ditures 7 made1 ! taxpay] has rcvd1 is 5titl$ 6rcv or c r1sonably 2 expect$ 6rcv4 ,"u p>agraph #acj ,9ve/;t tax cr$it e#ba #abg7#aa.a77e71 =! purposes ( calculat+ a taxpay]'s 9ve/;t tax cr$it1 ! am.t (a qualifi$ exp5diture = f/ t]m %>$-use-equip;t or = second t]m %>$-use-equip;t (! taxpay] % 2 deem$ 6be "o-qu>t] (! capital co/ (! equip;t less ! am.t ( any gov]n;t assi/.e1 non-gov]n;t assi/.e or 3tract pay;t t c r1sonably 2 3sid]$ 6be 9 respect (1 or =! acquisi;n (1 ! prop]ty & t1 at ! "t ( fil+ (! return ( 9come =! tax,n ye> 5d+ co9cid5t,y )! f/ p]iod1 ! taxpay] has rcvd1 is 5titl$ 6rcv or c r1sonably 2 expect$ 6rcv4 ,"u p>agraph #abg7#aa.a77f71 ! prescrib$ proxy am.t is deem$ 6be ! prescrib$ proxy am.t o!rwise det]m9$ m9us ! am.t ( any gov]n;t assi/.e1 non-gov]n;t assi/.e or 3tract pay;t t is rcvd1 is 5titl$ 6be rcvd or c r1sonably 2 expect$ 6be rcvd at ! "t ( fil+ ! return ( 9come =! ye> 9 : ! exp5diture 0 9curr$1 t c r1sonably 2 3sid]$ 6be = an exp5diture describ$ 9 subp>agraph #aca ,9ve/;t tax cr$it f#ba #cg7#h77a77;ii7 o!r ?an an exp5diture describ$ 9 clause #cg7#h77a77;ii77,b74 ,an exp5diture describ$ 9 subp>agraph #cg7#h77a77;ii7 t is n describ$ 9 clause #cg7#h77a77;ii77,b7 is an exp5diture t wd h be5 9clud$ 9 ! pool ( deducti# ,,sr&,,ed exp5ditures 9/1d ( 2+ deduct$ z a normal busi;s exp5se or 9clud$ 9 a prescrib$ class1 if ! taxpay] _h n elect$ "u clause #cg7#h77a77;ii77,b74 ,= tax,n ye>s t 2g9 af #aiie ,p>agraph 7h7 (! def9i;n ( 8qualifi$ exp5diture0 9 subsec;n #abg7#i7 re/ricts ! am.t ( an o!rwise qualifi$ exp5diture 0any reduc;n requir$ "u subsec;ns #abg7#ah7 to 7#bj74 ,subsec;n #abg7#ah7 g5],y reduces ! am.t ( qualifi$ exp5ditures ! taxpay] has o!rwise 9curr$ 9 ! ye> t c r1sonably 2 3sid]$ 6be 9 respect ( ,,sr&,,ed1 0! am.t ( gov]n;t assi/.e1 non-gov]n;t assi/.e or 3tract #acb ,9ve/;t tax cr$it g#ba pay;ts 7"h9af ref]r$ 6z assi/.e71 :e!r relat$ 6qualifi$ or non-qualifi$ exp5ditures1 -------------------------------------#bb t c r1sonably 2 3sid]$ 6be 9 respect ( ,,sr&,,ed t ! taxpay] has rcvd1 is 5titl$ 6rcv or c r1sonably 2 expect$ 6rcv on or 2f ! taxpay]'s fil+-due date =! ye> 7see p>agraph #f74 ,fur!rmore1 "u subsec;ns #abg7#ai7 & 7#bj71 ! taxpay]'s qualifi$ exp5ditures may al 2 reduc$ 0an am.t ( assi/.e rcvd1 receiva#1 or t c r1sonably 2 expect$ 6be rcvd1 9 respect (! ,,sr&,,ed 0p]sons or "pn]%ips ) :om ! taxpay] is n d1l+ at >m's l5g? at ! "t ! ,,sr&,,ed is p]=m$4 ,subsec;n #abg7#ai7 applies :5 ! am.t ( assi/.e t1 on or 2f _! fil+-due date =a tax,n ye>1 p]sons or "pn]%ips 7! recipi5t7 h rcvd1 >e 5titl$ 6rcv or c r1sonably expect 6rcv 9 respect #acc ,9ve/;t tax cr$it a#bb ( ,,sr&,,ed1 & t has n be5 appli$ 9 prec$+ ye>s "u subsec;ns #abg7#ah7 to 7#bj71 is grt] ?an ! total ( --all am.ts t wd1 if subsec;n #abg7#ah7 _h n appli$1 2 qualifi$ exp5ditures 9 respect (! ,,sr&,,ed 9curr$ 9 ! ye> 0! recipi5t2 & --all am.ts t wd1 if subsec;n #abg7#ai7 _h n appli$1 2 qualifi$ exp5ditures 9 respect (! ,,sr&,,ed 9curr$ 9 _! tax,n ye> 5d+ 9 ! recipi5t's tax,n ye> 0p]sons or "pn]%ips :o 7 n d1l+ at >m's l5g? )! recipi5t at ! "t :5 ! ,,sr&,,ed 0 p]=m$4 ,9 s* cases1 subsec;n #abg7#ai7 elim9ates ! qualifi$ exp5ditures 9curr$ 0! non->m's l5g? p]sons 9 respect (! ,,sr&,,ed4 ,:5 ! assi/.e 9 respect ( ,,sr&,,ed does n exce$ ! total qualifi$ exp5ditures 9curr$ 0! taxpay] & p]sons or "pn]%ips ) : ! taxpay] is n #acd ,9ve/;t tax cr$it b#bb d1l+ at >m's l5g? at ! "t ! ,,sr&,,ed is p]=m$1 subsec;n #abg7#ai7 does n usu,y apply4 ,:5 ? is ! case1 subsec;n #abg7#bj7 all[s memb]s (a relat$ gr\p 6agree 6allocate 2t !mvs ! qualifi$ exp5ditures reduc;n result+ f ! assi/.e4 ,subsec;n #abg7#bj7 provides t a taxpay] &a p]son or "pn]%ip ) :om ! taxpay] does n d1l at >m's l5g? 7! transf]ee7 may1 on or 2f ! taxpay]'s fil+-due date =! ye>1 file an agree;t ":by ! am.t specifi$ 9 ! agree;t wd reduce ! am.t ( qualifi$ exp5ditures 9curr$ 9 respect (! ,,sr&,,ed 0! transf]ee 9 ! transf]ee's tax,n ye> t 5ds 9 ! taxpay]'s tax,n ye> 6! ext5t t ! ,,sr&,,ed 0 p]=m$ at a "t :5 ! transf]ee &! taxpay] 7 n d1l+ at >m's l5g?4 ,if no alloc,n "u subsec;n #abg7#bj7 is made or if an 9su6ici5t am.t is allocat$1 subsec;n #abg7#ba7 may op]ate 6reduce ! qualifi$ exp5ditures ( e p]son or "pn]%ip t p]=m$ ,,sr&,,ed at a "t :5 x 0 #ace ,9ve/;t tax cr$it c#bb n d1l+ at >m's l5g? )a p]son or "pn]%ip 7! recipi5t7 t has rcvd1 is 5titl$ 6rcv or c r1sonably expect 6rcv a "picul> am.t ( assi/.e 9 respect (! ,,sr&,,ed4 ,"u subsec;n #abg7#ba71 ! less] (! por;n (a "picul> am.t ( assi/.e 9 respect ( ,,sr&,,ed ! recipi5t has rcvd1 is 5titl$ 6rcv or c r1sonably expect 6rcv on or 2f ! recipi5t's fil+-due date =a tax,n ye> & t has n be5 appli$ 9 ! ye> or 9 previ\s ye>s "u subsec;ns #abg7#ah71 7#ai7 or 7#bj71 & --! am.t ( qualifi$ exp5ditures a p]son or "pn]%ip has 9curr$ 9 xs tax,n ye> t 5ds 9 ! recipi5t's tax,n ye>1 9 respect (! ,,sr&,,ed t 0 p]=m$ at a "t :5 ! p]son or "pn]%ip is n d1l+ at >m's l5g? )! recipi5t is deem$ 6be an am.t ( gov]n;t assi/.e rcvd 0! p]son or "pn]%ip 9 respect (! ,,sr&,,ed4 ,subsec;n #abg7#ah7 wd !n apply 6reduce ! am.t (! p]son or "pn]%ip's qualifi$ exp5ditures #acf ,9ve/;t tax cr$it d#bb o!rwise det]m9$4 ,subsec;n #abg7#ba7 does n apply if subsec;n #abg7#ai7 applies 6! "picul> am.t ( assi/.e 9 respect (! ye>4 ,"u subsec;n #abg7#bb71 ! agree;t "u subsec;n #abg7#bj7 wd 2 deem$ n 6h be5 fil$ if x is n fil$ 9 prescrib$ =m 0! "t specifi$ 9 p>agraph #abg7#bb77b71 if x is n a3ompani$ ) docu;ts describ$ 9 p>agraph #abg7#bb77c71 or if an agree;t am5d+ x has be5 fil$ ac 6subsec;ns #abg7#bj7 & #abg7#bb74 ,3tract pay;t #gh4 ,a 83tract pay;t10 z def9$ "u subsec;n #abg7#i71 m1ns3 7a7 7;i7 9 a tax,n ye> t 2g9s 2f #aiif1 an am.t paya# af ,decemb] #bj1 #aiia1 = ,,sr&,,ed 6! ext5t t x c r1sonably 2 3sid]$ 6h be5 p]=m$ =1 or on 2half (1 a p]son 5titl$ 6a deduc;n 9 respect (! am.t #acg ,9ve/;t tax cr$it e#bb 2c ( subp>agraph #cg7#a77a77;i7 or clause #cg7#a77a77;ii77,d72 or 7;ii7 9 a tax,n ye> t 2g9s af #aiie1 an am.t pd or paya# 6a taxpay] 0a 8taxa# suppli]0 7see p>agraph #ff7 9 respect (! am.t = ,,sr&,,ed p]=m$3 --=1 or on 2half (1 a p]son or "pn]%ip 5titl$ 6a deduc;n =! am.t "u subp>agraph #cg7#a77a77;i7 or 7i4#a71 & --at a "t :5 ! taxpay] &! p]son or "pn]%ip >e d1l+ at >m's l5g?2 or 7b7 an am.t 7o!r ?an a prescrib$ am.t7 paya# 0a ,canadian gov]n;t1 municipal;y or o!r ,canadian public au?or;y or 0a p]son exempt f ,"p ;,i tax "u sec;n #adi = ,,sr&,,ed 6be p]=m$ = x or on xs 2half4 ,=! purposes ( 7b71 a prescrib$ am.t is describ$ 9 sec;n #dfjf (! ,regul,ns z an am.t rcvd f ! ,canadian ,-m]cial ,corpor,n 9 respect ( an am.t rcvd 0t ,corpor,n f a =eign gov]n;t1 #ach ,9ve/;t tax cr$it f#bb =eign municipal;y or o!r =eign public au?or;y4 -------------------------------------#bc ,9 a4i;n 6! abv1 applica# = tax,n ye>s t 2g9 af #aiie1 subsec;n #abg7#be7 deems an am.t 6be a 3tract pay;t 6a taxpay] :o is an ,,sr&,,ed p]=m] ": "! is an >range;t 2t ! taxpay] &a p]son or "pn]%ip ) :om ! taxpay] is d1l+ at >m's l5g? "o (! ma9 purposes ( : is 6cause an am.t n 6be a 3tract pay;t 6! taxpay] 0hav+ ! am.t pd or paya# 6ano!r p]son or "pn]%ip & rcvd or receiva# 0! taxpay] f a p]son or "pn]%ip :o is n a taxa# suppli] 9 respect (! am.t4 ,repay;t ( ,assi/.e #gi4 ,p>agraph 7e4#a7 (! def9i;n ( 89ve/;t tax cr$it0 9 subsec;n #abg7#i7 provides t a taxpay] :o repays gov]n;t assi/.e1 non-gov]n;t assi/.e or a 3tract pay;t w 2 5titl$ 6an #aci ,9ve/;t tax cr$it a#bc 9ve/;t tax cr$it =! repay;t 6! ext5t t ! assi/.e repd _h previ\sly reduc$ ! am.t (! taxpay]'s --capital co/ (a prop]ty "u p>agraph #abg7#aa.a77b71 --qualifi$ exp5ditures "u any ( subsec;ns #abg7#ah7 to 7#bj7 7z 4cuss$ 9 p>agraph #gg7 or1 --= tax,n ye>s t 2gan 2f #aiif 7z 4cuss$ 9 p>agraph #gg71 ! taxpay]'s --qualifi$ exp5ditures on ,,sr&,,ed "u p>agraph #abg7#aa.a77c71 or --prescrib$ proxy am.t "u p>agraph #abg7#aa.a77f74 ,p>agraph 7e4#b7 (! def9i;n ( 89ve/;t tax cr$it0 9 subsec;n #abg7#i7 provides t a taxpay] :o repays gov]n;t assi/.e1 non-gov]n;t assi/.e or a 3tract pay;t t _h reduc$ ! am.t (! taxpay]'s qualifi$ exp5diture "u any ( subsec;ns #abg7#ah7 to 7#bj7 or "u p>agraph #abg7#aa.a77e7 9 respect ( f/ or second t]m %>$-use-equip;t w 2 5titl$ 6an am.t ( 9ve/;t tax #adj ,9ve/;t tax cr$it b#bc cr$it = "o-qu>t] (! am.t repd4 ,= ? purpose1 a repay;t made 0! taxpay] 9 any tax,n ye> prec$+ ! f/ tax,n ye> 5d+ co9cid5t,y )! f/ p]iod or ! second p]iod 9 respect ( f/ t]m %>$-use- equip;t or second t]m %>$-use-equip;t1 respectively1 % 2 deem$ 6h be5 made 0! taxpay] 9 t f/ tax,n ye>4 ,9 a4i;n1 subsec;n #abg7#aj.h7 deems ! am.t ( assi/.e t 0 appli$ 6reduce ! am.t (a qualifi$ exp5diture t 0 n rcvd 0! taxpay] 9 a tax,n ye> & t c1s$ 6be an am.t t ! taxpay] may r1sonably expect 6rcv1 6be an am.t ( assi/.e repd 0! taxpay] 9 ! ye>4 ,a4i;nal ,am.t = ,c]ta9 ,corpor,ns ,g5]al #hj4 ,"u subsec;n #abg7#aj.a71 c]ta9 corpor,ns may 2 5titl$ 6an a4i;nal am.t ( 9ve/;t tax cr$it 7up 6a #ada ,9ve/;t tax cr$it c#bc ye>ly exp5diture limit describ$ 9 p>agraph #ha7 on xs ,,sr&,,ed qualifi$ exp5diture pool1 or 9 tax,n ye>s t 2g9 2f #aiif1 =! qualifi$ exp5ditures ! corpor,n 9curr$ 9 ! ye>4 ,= tax,n ye>s 2g9n+ af ,febru>y #bjjj & 5d+ af #bjjj1 9 calculat+ ? a4i;nal am.t1 ! ,,sr&,,ed qualifi$ exp5diture pool at ! 5d (! ye> m/ 2 reduc$ 0! taxpay]'s sup]-all[.e b5efit am.t =! ye> 9 respect (a prov9ce 7see p>agraph #da74 ,! a4i;nal am.t provid$ 0subsec;n #abg7#aj.a7 9cr1ses ! e6ective rate ( 9ve/;t tax cr$it on ! excess (a corpor,n's ,,sr&,,ed qualifi$ exp5diture pool ov] xs sup]-all[.e b5efit am.t =! ye> 6#ce@3p4 ,6qualify = ? a4i;nal am.t =a "picul> ye>1 a corpor,n m/ 2 a ,,ccpc "?\t ! tax,n ye>4 ,= tax,n ye>s 2g9n+ 2f #aiid1 ! ,,ccpc's taxa# 9come = xs immly prec$+ tax,n ye>1 tgr )! taxa# 9come ( all corpor,ns ) : x is associat$ 9 #adb ,9ve/;t tax cr$it d#bc ! "picul> ye> = _! tax,n ye>s t 5d$ 9 ! prec$+ cal5d> ye>1 _c exce$ ! total (! ,,ccpc's &! associat$ corpor,ns' busi;s limits 7z det]m9$ "u sec;n #abe7 = ^? prec$+ ye>s4 ,= tax,n ye>s 2g9n+ af #aiic & 2f #aiif1 ! ,,ccpc's taxa# 9come = xs immly prec$+ tax,n ye>1 tgr )! taxa# 9come ( all corpor,ns ) : x is associat$ 9 ! "picul> ye> = _! tax,n ye>s t 5d$ 9 ! prec$+ cal5d> ye>1 _c exce$ twice ! total (! ,,ccpc's &! associat$ corpor,ns' busi;s limits 7z det]m9$ "u sec;n #abe7 = ^? prec$+ ye>s4 ,a corpor,n w n 2 prev5t$ f qualify+ =! a4i;nal am.t 9 xs f/ tax,n ye> simply 2c x did n h an 8immly prec$+ tax,n ye>40 ,h["e1 ,,ccpc's c>ry+ on a busi;s 9 a "pn]%ip >e n 5titl$ 6! a4i;nal am.t "u subsec;n #abg7#aj.a7 =! ,,sr&,,ed t ! "pn]%ip p]=ms4 #adc ,exp5diture limit e#bc #ha4 ,subsec;n #abg7#aj.b7 def9es ! ye>ly exp5diture limit =! purposes ( subsec;n #abg7#aj.a74 ,! exp5diture limit o!rwise det]m9$ "u ? subsec;n may 2 nil 9 a tax,n ye> t a corpor,n is associat$ ) ano!r corpor,n un.s all (! ,,ccpc's t >e associat$ 9 ! ye> file an agree;t 9 prescrib$ =m allocat+ ! exp5diture limit am;g !mvs 9 a3ord.e ) subsec;n #abg7#aj.c74 ,=a "picul> tax,n ye> t 2g9s af #aiie1 ! exp5diture limit (a corpor,n t is n associat$ ) ano!r corpor,n w g5],y 2 4#b million less #aj "ts ! excess1 if any1 (! corpor,n's taxa# 9come 9 ! prec$+ tax,n ye> ov] 4#bjj1jjj4 ,h["e1 ? am.t w 2 propor;nately reduc$ 6! ext5t t ! corpor,n's busi;s limit =! ye> is less ?an 4#bjj1jjj4 ,:5 ! corpor,n is associat$ ) ano!r corpor,n 9 a "picul> tax,n ye> t 2g9s af #aiie1 ! exp5diture limit =! ye> w g5],y 2 #add ,9ve/;t tax cr$it f#bc 4#b million less #aj "ts ! am.t1 if any1 0: ! total ( --! corpor,n's taxa# 9come = xs la/ tax,n ye> 5d+ 9 ! prec$+ cal5d> ye>1 -------------------------------------#bd & --! taxa# 9come ( corpor,ns ) : x is associat$ 9 ! "picul> ye> = _! la/ tax,n ye>s 5d+ 9 ! previ\s cal5d> ye> exce$s 4#bjj1jjj4 ,! am.t (! exp5diture limit w al 2 propor;nately reduc$ 6! ext5t t ! total (! busi;s limits (! corpor,n & xs associat$ corpor,ns is less ?an 4#bjj1jjj4 ,= tax,n ye>s t 2g9 af #aiif1 6det]m9e ! exp5diture limit (a corpor,n =a "picul> tax,n ye>1 ! taxa# 9come (! corpor,n =! previ\s ye> &( corpor,ns ) : x is associat$ 9 ! "picul> ye> =! la/ tax,n ye> 5d+ 9 ! previ\s cal5d> ye> m/ 2 det]m9$ 2f tak+ 963sid],n ! specifi$ #ade ,9ve/;t tax cr$it a#bd future tax 3sequ;es =! ye>4 ,! expres.n 8specifi$ future tax 3sequ;e0 is def9$ 9 subsec;n #bdh7#a74 ,=a "picul> tax,n ye> t 2g9s af #aiic & 2f #aiif1 ! exp5diture limit is 4#b million less #aj "ts ! am.t1 if any1 t ! total (! corpor,n's taxa# 9come =! previ\s ye> &! taxa# 9come ( corpor,ns ) : x is associat$ 9 ! "picul> ye> = _! tax,n ye>s 5d+ 9 ! previ\s cal5d> ye>1 exce$s 4#bjj1jjj4 ,9 a4i;n1 g5],y1 = tax,n ye>s 5d+ af ,june #cj1 #aiid1 ! am.t (a corpor,n's busi;s limit =a "picul> ye> w 2 gradu,y elim9at$ "u subsec;n #abe7#e.a7 :5 ! corpor,n _h taxa# capital employ$ 9 ,canada = xs la/ tax,n ye> ( 2t 4#aj million & 4#ae million4 ,h["e1 if ! corpor,n is associat$ ) "o or m corpor,ns 9 ! ye>1 ! am.t ( xs busi;s limit w 2 gradu,y elim9at$ "u subsec;ns #abe7#e7 & 7#e.a7 :5 ! associat$ corporate gr\p _h taxa# capital employ$ 9 ,canada ( 2t #adf ,9ve/;t tax cr$it b#bd 4#aj million & 4#ae million = _! la/ tax,n ye> 5d+ 9 ! prec$+ cal5d> ye>4 ,h["e1 "! >e transi;nal provi.ns = tax,n ye>s t /ra4le ,july #a1 #aiid : prorate ? reduc;n (! busi;s limit on ! basis (! numb] ( "ds 9 ! tax,n ye> af t date4 ,3sequ5tly1 9 a "picul> tax,n ye> t 2g9s af #aiie1 ! exp5diture limit ( corpor,ns 7&( associat$ corporate gr\ps7 ^: taxa# capital employ$ 9 ,canada 9 ! previ\s tax,n ye> 7or 9 ! la/ ye> 5d+ 9 ! previ\s cal5d> ye>7 exce$s 4#ae million w 2 nil4 ,g5],y1 = tax,n ye>s 2g9n+ 2f #aiid1 ! exp5diture limit t c 2 %>$ am;g associat$ corpor,n is 4#b million4 ,%ort tax,n ye> #hb4 ,subsec;n #abg7#aj.f7 provides a4i;nal rules ) respect 6! det]m9,n (a ,,ccpc's exp5diture limit4 ,9 ! ev5t a taxpay]'s tax,n ye> is less ?an #adg ,9ve/;t tax cr$it c#bd #ea weeks1 p>agraph #abg7#aj.f77b7 provides t ! exp5diture limit w 2 prorat$ on ! basis (! numb] ( "ds 9 ! tax,n ye>4 ,p>agraph #abg7#aj.f77a7 applies if a ,,ccpc has m ?an "o tax,n ye> 9 ! same cal5d> ye> & is associat$ ) ano!r ,,ccpc 9 two or m ( ^! tax,n ye>s4 ,"u t p>agraph1 ! exp5diture limit (! ,,ccpc = ea* tax,n ye> 9 t cal5d> ye> 9 : x is associat$ )! o!r ,,ccpc w 2 ! am.t t wd h be5 ! ,,ccpc's %>e (! exp5diture limit =! f/ s* tax,n ye> 7_h "! be5 only "o tax,n ye> 9 t cal5d> ye>7 prorat$ on ! basis (! numb] ( "ds 9 ea* %ort tax,n ye>4 ,=! purpose ( det]m9+ a ,,ccpc's exp5diture limit "u subsec;n #abg7#aj.b7 =a tax,n ye> t 2g9s af #aiie1 & t is less ?an #ea weeks1 p>agraph #abg7#aj.f77c7 provides t xs taxa# 9come & busi;s limit =! ye> w 2 det]m9$ 0multiply+ ^? am.ts 0! ratio t #cfe is 6! numb] ( "ds 9 ! ye>4 #adh ,repay;ts ( assi/.e d#bd #hc4 ,p>agraphs 7e4#a7 & 7e4#b7 (! def9i;n ( 89ve/;t tax cr$it0 9 subsec;n #abg7#i7 provide t a taxpay] mak+ a repay;t ( gov]n;t assi/.e1 non- gov]n;t assi/.e or a 3tract pay;t 9 a "picul> ye> w 2 5titl$ 6an am.t ( 9ve/;t tax cr$it 7calculat$ at ! rate describ$ 9 p>agraph 7f7 or 7f4#a7 (! def9i;n ( 8specifi$ p]c5tage0 9 subsec;n #abg7#i77 9 ! "picul> ye> 6! ext5t t ! repay;t _h reduc$ ! am.t (! taxpay]'s qualifi$ exp5ditures 9 a prec$+ ye>1 z describ$ 9 p>agraph #gg4 ,"u subsec;n #abg7#aj.g71 a taxpay] mak+ s* a repay;t may 2 5titl$ 6an a4i;nal am.t ( 9ve/;t tax cr$it4 ,! a4i;nal am.t ( 9ve/;t tax cr$it a4$ 9 ! ye> ( repay;t is equal 6! am.t 6: ! taxpay] wd h be5 5titl$ "u subsec;n #abg7#aj.a7 9 ! prec$+ ye> 7if ! assi/.e repd _h n reduc$ ! am.t ( qualifi$ exp5ditures7 less ! am.t #adi ,9ve/;t tax cr$it e#bd det]m9$ "u subsec;n #abg7#aj.a7 =! prec$+ ye>4 ,acquisi;n ( ,3trol #hd4 ,if 3trol (a corpor,n has be5 acquir$ 0a p]son or gr\p ( p]sons1 subsec;ns #abg7#i.a7 & 7#i.b7 & p>agraphs 7j7 & 7k7 (! def9i;n ( 89ve/;t tax cr$it0 9 subsec;n #abg7#i7 may apply 6re/rict ! availabil;y (! corpor,n's 9ve/;t tax cr$its4 ,9 g5]al1 ^! provi.ns limit ! applic,n ( 9ve/;t tax cr$its 6! tax on ! 9come f a "picul> busi;s c>ri$ on 0! corpor,n 2f ! acquisi;n ( 3trol or any o!r busi;s sub/anti,y all ! 9come ( : is f ! sale1 l1s+1 r5tal1 or develop;t ( prop]ties or ! r5d]+ ( s]vices simil> 6^? (! "picul> busi;s c>ri$ on 0! corpor,n 2f ! acquisi;n ( 3trol4 #aej ,refunda# ,9ve/;t ,tax f#bd ,cr$its ,g5]al #he4 ,sec;n #abg.a applies 6a taxpay]1 o!r ?an a p]son exempt f ,"p ;,i tax "u sec;n #adi1 :o has fil$ )! taxpay]'s return ( 9come =! ye> ei ,=m ,t#bjch or ,s*$ule #ca (! ,t#b return1 z appropriate1 -------------------------------------#be 3ta9+ prescrib$ 9=m,n4 ,h["e1 sec;n #abg.a does n apply if ! prescrib$ =m is fil$ )a return ( 9come "u subsec;ns #gj7#b71 #ajd7#bc71 #aej7#d7 or1 = tax,n ye>s t 2g9 2f ,april #bg1 #aiif1 "u p>agraph #abh7#b77e7 or1 = tax,n ye>s t 2g9 af ,april #bf1 #aiif1 "u p>agraph #abh7#b77f74 ,"u sec;n #abg.a1 ! taxpay] is deem$ 6h pd on a3.t (! taxpay]'s tax paya# "u ,"p ;,i =! ye> ! less] (! taxpay]'s refunda# 9ve/;t tax cr$it =! ye> &! am.t designat$ 0! taxpay] on ei ,=m #aea ,9ve/;t tax cr$it a#be ,t#bjch or ,s*$ule #ca (! ,t#b return1 z appropriate3 --= tax,n ye>s t 5d af ,febru>y #bb1 #aiid1 on ! taxpay]'s bal.e-due "d =! ye> z def9$ 9 subsec;n #bdh7#a72 or --on ! "d on : ! return ( 9come or ,=m ,t#bjch is fil$ = tax,n ye>s t 5d 2f ,febru>y #bc1 #aiid4 #hf4 8,refunda# 9ve/;t tax cr$it0 (a taxpay] =a tax,n ye> is def9$ 9 subsec;n #abg.a7#b7 z modifi$ 0subsec;n #abg.a7#b.ja74 ,g5],y1 =a 8qualify+ corpor,n0 7describ$ 9 p>agraph #hg71 an 9dividual o!r ?an a tru/1 or a tru/ ea* b5efici>y ( : is ei a qualify+ corpor,n or an 9dividual o!r ?an a tru/1 ! refunda# 9ve/;t tax cr$it is #dj@3p (! unclaim$ bal.e (! 9ve/;t tax cr$it e>n$ 9 ! curr5t ye> = qualifi$ exp5ditures4 ,fur!rmore1 a qualify+ corpor,n1 o!r ?an an 8exclud$ corpor,n0 7describ$ 9 p>agraph #hg71 may g5],y 2 refund$ any por;n #aeb ,9ve/;t tax cr$it b#be (! unclaim$ bal.e (! 9ve/;t tax cr$it e>n$ 9 ! ye> at ! e6ective rate ( #ce@3p 7see p>agraph #hj7 = xs ,,sr&,,ed exp5ditures (a curr5t nature & xs prescrib$ proxy am.t4 ,9 a4i;n1 = tax,n ye>s 2g9n+ af #aiic1 "u subsec;n #abg.a7#b.ja71 a ,,ccpc1 o!r ?an a qualify+ corpor,n or an exclud$ corpor,n1 may 2 refund$ --any por;n (! unclaim$ bal.e (! 9ve/;t tax cr$it e>n$ 9 ! ye> at ! e6ective rate ( #ce@3p 7see p>agraph #hj7 = qualifi$ exp5ditures (a curr5t nature & xs prescrib$ proxy am.t1 & --#dj@3p (! unclaim$ bal.e (! 9ve/;t tax cr$it e>n$ 9 ! ye> at ! e6ective rate ( #ce@3p = qualifi$ exp5ditures (a capital nature4 #aec ,qualify+ ,corpor,n & c#be ,exclud$ ,corpor,n #hg4 ,! t]ms 8exclud$ corpor,n0 & 8qualify+ corpor,n0 >e def9$ 9 subsec;n #abg.a7#b74 ,a corpor,n is an exclud$ corpor,n if1 at any "t dur+ ! ye>1 x is a corpor,n t is ei 3troll$ 7directly or 9directly1 9 any mann] :at"e7 by1 or is relat$ to 7a7 "o or m p]sons exempt f ,"p ;,i tax "u sec;n #adi2 7b7 ,h] ,maje/y 9 "r (a prov9ce1 a ,canadian municipal;y or any o!r public au?or;y2 or 7c7 any -b9,n (! abv4 ,= tax,n ye>s 5d+ af ,june #aiid1 6be a qualify+ corpor,n1 ! corpor,n m/ f/ 2 a ,,ccpc "?\t ! ye>4 ,if ! ,,ccpc is associat$ ) ano!r corpor,n dur+ ! "picul> ye>1 xs taxa# 9come = xs la/ tax,n ye> 5d+ 9 ! prec$+ cal5d> ye> &! taxa# 9comes ( corpor,ns ) : x is associat$ 9 ! "picul> ye> = _! #aed ,9ve/;t tax cr$it d#be la/ tax,n ye>s 5d+ 9 ! previ\s cal5d> ye> m/ n exce$ ! total (! ,,ccpc's &! associat$ corpor,ns' busi;s limits = ^? ye>s4 ,h["e1 if ! ,,ccpc is n associat$ ) o!r corpor,ns 9 ! "picul> ye>1 ! ,,ccpc's taxa# 9come 9 ! prec$+ tax,n ye> m/ n exce$ xs busi;s limit = t ye> = x 6be a qualify+ corpor,n4 ,= ^! purposes1 ! busi;s limit is g5],y det]m9$ "u sec;n #abe4 ,h["e1 = tax,n ye>s t 2g9 2f #aiif1 ! busi;s limit w 2 det]m9$ "u sec;n #abe z x r1d 9 xs applic,n 6tax,n ye>s t 5d 2f ,july #aiid4 ,9 a "picul> tax,n ye> t 2g9s af #aiie1 corpor,ns 7& associat$ corpor,ns7 ^: taxa# capital employ$ 9 ,canada 9 ! previ\s tax,n ye> 7or 9 ! la/ ye> 5d+ 9 ! previ\s cal5d> ye>7 exce$s 4#ae million w n h a busi;s limit 7see p>agraph #ha7 &1 "!=e1 w n meet ! 3di;ns 6be a qualify+ corpor,n4 ,2c !y w al h an exp5diture #aee ,9ve/;t tax cr$it e#be limit t is nil 7see p>agraph #ha71 !y w 2 prev5t$ f e>n+ refunda# ,,itc's4 ,= tax,n ye>s t 2g9 af #aiie1 6det]m9e :e!r a ,,ccpc is a qualify+ corpor,n =a "picul> tax,n ye>1 ! taxa# 9come (! corpor,n =! previ\s ye> &( corpor,ns ) : x is associat$ 9 ! "picul> ye> =! la/ tax,n ye> 5d+ 9 ! previ\s cal5d> ye> m/ 2 det]m9$ 2f tak+ 963sid],n ! specifi$ future tax 3sequ;es =! ye>4 ,! expres.n 8specifi$ future tax 3sequ;e0 is def9$ 9 subsec;n #bdh7#a74 ,=a tax,n ye> 5d+ 2f ,july #aiid1 a 8qualify+ corpor,n0 is a corpor,n t is a ,,ccpc "?\t ! tax,n ye> ^: taxa# 9come =! immly prec$+ tax,n ye>1 tgr )! taxa# 9comes ( all corpor,ns ) : x 0 associat$ 9 ! "picul> ye> = _! tax,n ye>s t 5d$ 9 ! prec$+ cal5d> ye>1 does n exce$ ! total (! ,,ccpc's &! associat$ corpor,ns' busi;s limits 7z det]m9$ "u sec;n #abe7 = ^? prec$+ ye>s4 #aef ,reduc;n ( ,availa# f#be ,9ve/;t ,tax ,cr$its #hh4 ,subsec;n #abg.a7#c7 deems am.ts deem$ 0subsec;n #abg.a7#a7 6be pd on a3.t (a taxpay]'s ,"p ;,i tax 6be am.ts deduct$ "u subsec;n #abg7#e74 ,3sequ5tly1 s* am.ts reduce ! taxpay]'s 9ve/;t tax cr$its availa# = c>ryback or c>ry=w>d4 -------------------------------------#bf ,amalgam,n ,& ,w9d+-,up ,3t9u,n ( ,pr$ecessor ,corpor,ns #hi4 ,:5 "! has be5 an amalgam,n ( two or m corpor,ns1 z def9$ 9 sec;n #hg 7see ! curr5t v].n ( ,,it-#dgd1 ,amalgam,ns ( ,canadian ,corpor,ns71 p>agraph #hg7#b77l7 provides t ! new corpor,n is deem$1 =! purposes ( sec;n #cg & ,"p ,,viii1 6be ! same corpor,n z1 &a 3t9u,n (1 ea* pr$ecessor corpor,n4 ,simil>ly1 :5 "! has #aeg ,amalgam,n & w9d+-up a#bf be5 a w9d+-up (a taxa# ,canadian corpor,n 6: subsec;n #hh7#a7 applies 7see ! curr5t v].n ( ,,it-#dhh1 ,w9d+- up ( #ij@3p-,[n$ ,taxa# ,canadian ,corpor,ns71 p>agraph #hh7#a77e4#b7 causes p>agraph #hg7#b77l7 6apply s t ! p>5t corpor,n is deem$ =! purposes ( sec;n #cg & ,"p ,,viii 6be ! same corpor,n z1 &a 3t9u,n (1 xs subsidi>y4 ,capital ,co/ ( ,rese>* ,prop]ty #ij4 ,=! purpose ( sec;n #cg.a1 :5 "! has be5 an amalgam,n ( two or m corpor,ns1 z def9$ 9 sec;n #hg1 ! new corpor,n's capital co/ (a rese>* prop]ty acquir$ f a pr$ecessor corpor,n is deem$ 6be equal 6! capital co/ (! prop]ty 6! pr$ecessor corpor,n "u subp>agraph #hg7#b77l4#a77;iii74 ,= ? purpose1 a pr$ecessor corpor,n 9cludes any corpor,n t 0 xf an amalgamat$ corpor,n4 #aeh ,amalgam,n & w9d+-up b#bf ,subp>agraph #hg7#b77l4#a77;iii71 tgr ) subp>agraph #hg7#b77l4#a77;iv71 has ! e6ect ( def]r+ any pot5tial recapture ( ,,sr&,,ed all[.e z describ$ 9 p>agraph #dh4 ,:5 a subsidi>y's rese>* prop]ty 0 acquir$ 0xs p>5t z a result (a w9d+-up 6: subsec;n #hh7#a7 applies1 subsec;n #cg.a7#d7 deems ! prop]ty 6be rese>* prop]ty (! p>5t &1 if ! capital co/ (! prop]ty 6! subsidi>y exce$s ! subsidi>y's proce$s ( 4posi;n1 ! capital co/ 6! p>5t w 2 deem$ 6be ! subsidi>y's capital co/ s t any pot5tial recapture ( ,,sr&,,ed all[.e is def]r$4 ,=! #aiie & subsequ5t tax,n ye>s1 h["e1 sec;n #cg.a has be5 rep1l$4 ,availabil;y ( ,9ve/;t ,tax ,cr$its #ia4 ,": "! has be5 an amalgam,n ( two or m corpor,ns1 z def9$ 9 sec;n #aei ,amalgam,n & w9d+-up c#bf #hg1 p>agraph #hg7#b77qq7 provides t1 =! purposes ( calculat+ ! 9ve/;t tax cr$it (! newly amalgamat$ corpor,n at ! 5d ( any "picul> tax,n ye>1 ! corpor,n is deem$ 6be ! same corpor,n z1 &a 3t9u,n (1 any pr$ecessor corpor,n4 ,= w9d+s-up 6: subsec;n #hh7#a7 applies1 p>agraph #hh7#a77e4#c7 provides =! fl[-"? ( 9ve/;t tax cr$its f a subsidi>y corpor,n 6a p>5t corpor,n4 ,^! provi.ns all[ ! amalgamat$ or p>5t corpor,n 6claim any unus$ 9ve/;t tax cr$it ( pr$ecessor or w.d-up subsidi>y corpor,ns4 ,s* claims >e subject 6! "t limits describ$ 9 ! def9i;n ( 89ve/;t tax cr$it0 9 subsec;n #abg7#i74 ,p>agraph #hh7#a77e4#c7 al provides t ! p>5t is deem$ 6be ! same corpor,n z1 &a 3t9u,n (1 ! subsidi>y =! purposes (! def9i;n ( 8f/ t]m %>$-use-equip;t0 & 8second t]m %>$-use-equip;t0 7see p>agraph #fa74 ,? provi.n all[s ! "t p]iods /ipulat$ 9 respect ( f/ #afj ,amalgam,n & w9d+-up d#bf & second t]m %>$-use-equip;t n 6be s"e$ z a result (a w9d+-up 6: subsec;n #hh7#a7 applies4 ,"pn]%ips ,,sr&,,ed ,exp5ditures #ib4 ,9 calculat+ a "pn]'s %>e (! 9come or loss (a "pn]%ip =a tax,n ye> "u subsec;n #if7#a71 p>agraph #if7#a77e4#a7 requires t ! "pn]%ip 9come =! ye> 2 calculat$ z if ! am.ts availa# "u subsec;n #cg7#a7 9 xs pool ( deducti# ,,sr&,,ed exp5ditures 7 deduct$ 0! "pn]%ip "u sec;n #cg7#a74 ,3sequ5tly1 a "pn]%ip is una# 6c>ry =w>d ,,sr&,,ed exp5ditures = deduc;n 9 a subsequ5t ye>4 ,9 a4i;n1 p>agraph #if7#a77g7 provides t1 9 calculat+ ! %>e (a "pn]%ip loss t is deducti# 0a 8specifi$ memb]0 (! "pn]%ip =a tax,n ye>1 a loss f any s\rce or s\rces 9 a "picul> place m/ 2 reduc$ 0any #afa ,"pn]%ips e#bf am.ts deduct$ "u sec;n #cg 9 calculat+ ! "pn]%ip 9come f t s\rce or s\rces 9 a "picul> place4 ,=! purposes ( p>agraph #if7#a77g71 ! t]m 8specifi$ memb]0 (a "pn]%ip 9 a fiscal p]iod or tax,n ye> is re/rict$ 6any memb] (! "pn]%ip :o is a 8limit$ "pn]0 z def9$ 9 subsec;n #if7#b.d7 at any "t 9 ! p]iod or ye>4 #ic4 ,if p>agraph #if7#a77g7 re/ricts ! am.t (a "pn]%ip loss t a limit$ "pn] c deduct1 ! am.t t is n deducti# is n all[a# 6o!r memb]s (! "pn]%ip1 does n 3/itute a 8limit$ "pn]%ip loss0 7)9 ! m1n+ ( subsec;n #if7#b.a77 =! purposes ( subsec;n #aaa7#a71 & does n reduce ! am.t (! adju/$ co/ base (! taxpay]'s "pn]%ip 9t]e/4 ,alloc,n ( ,9ve/;t ,tax ,cr$its #id4 ,subsec;n #abg7#h7 provides =! alloc,n (! am.t t may r1sonably #afb ,"pn]%ips f#bf 2 3sid]$ 6be a "pn]'s %>e (! am.t ( 9ve/;t tax cr$it (! "pn]%ip 6a taxpay] t is a "pn] at ! 5d (! fiscal p]iod (! "pn]%ip4 ,an alloc,n ( 9ve/;t tax cr$its is g5],y 3sid]$ 6be ! "pn]'s r1sona# %>e (! 9ve/;t tax cr$its if x is made 9 ! same propor;n 9 : ! "pn]s h agre$ 6%>e any 9come or loss & if sec;n #ajc (! ,act is n applica# 9 respect (! agree;t 6%>e s* 9come or -------------------------------------#bg loss4 ,"u subsec;n #abg7#bh71 "! w 2 a reduc;n 9 a "pn]%ip's ,,sr&,,ed ,,itc availa# = alloc,n "u subsec;n #abg7#h7 9 c]ta9 circum/.es ": an ,,sr&,,ed prop]ty 7or a prop]ty t 9corporates ! ,,sr&,,ed prop]ty7 has be5 3v]t$ 6-m]cial use1 or 4pos$ ( )\t hav+ be5 previ\sly 3v]t$ 6-m]cial use1 af ,febru>y #bc1 #aiih4 ,g5],y1 subsec;n #abg7#bh7 applies 6prop]ty acquir$ 9 ! fiscal p]iod (a "pn]%ip or 9 any (! #aj prec$+ fiscal p]iods ": ! 8co/ (! "picul> prop]ty0 7z def9$ #afc ,"pn]%ips a#bg 0subsec;n #abg7#cb771 or ! co/ (a prop]ty t 9corporates ! "picul> prop]ty1 0 9clud$ 9 an am.t1 a p]c5tage ( : 7! 8,,itc p]c5tage07 c r1sonably 2 3sid]$ 6h be5 9clud$ 9 -put+ ! "pn]%ip's ,,sr&,,ed ,,itc4 ,! am.t det]m9$ "u subsec;n #abg7#h7 is reduc$ 0! less] ( --! am.t t c r1sonably 2 3sid]$ 6h be5 9clud$ 9 respect (! prop]ty 9 -put+ ! am.t det]m9$ "u subsec;n #abg7#h7 9 respect (! "pn]%ip2 & --! ,,itc p]c5tage ( ei --! proce$s ( 4posi;n (! prop]ty 7": ! prop]ty is 4pos$ ( 6a p]son :o d1ls at >m's l5g? )! "pn]%ip72 or --! fair m>ket value (! prop]ty 7in any o!r case74 ,":1 at ! 5d (a tax,n ye>1 a taxpay] is a memb] (a "pn]%ip t does n h a l>ge 5 bal.e 9 ! "pn]%ip's ,,itc o!rwise availa# = alloc,n "u subsec;n #abg7#h7 6(fset ! ,,itc recapture requir$ 0subsec;n #abg7#bh7 7or #afd ,"pn]%ips b#bg subsec;n #abg7#ce7--see p>agraph #eb71 subsec;n #abg7#cj7 applies 69cr1se ! taxpay]'s tax paya# "u ,"p ;,i =! ye> 0! am.t t c r1sonably 2 3sid]$ 6be t taxpay]'s %>e (! %ortfall4 ,": a taxpay] is a memb] (a "pn]%ip t is xf a memb] (a "pn]%ip1 subsec;n #abg7#ca7 provides a rule = allocat+ any a4i;nal tax paya# "u subsec;n #abg7#cj7 0deem+ t a4i;nal tax paya# 6be an am.t requir$ 0subsec;n #abg7#bh7 6be deduct$ 9 -put+ ! am.t "u sec;n #abg7#h74 #ie4 ,"u p>agraph #abg7#h77b71 an 9ve/;t tax cr$it e>n$ 0a "pn]%ip =a ,,sr&,,ed exp5diture1 &=a repay;t ( gov]n;t assi/.e1 non-gov]n;t assi/.e or a 3tract pay;t t reduc$ ! co/ (a qualifi$ exp5diture on ,,sr&,,ed "u p>agraph #abg7#aa.a77c71 p>agraph #abg7#aa.a77f7 = tax,n ye>s t 2g9 2f #aiif1 or any ( subsec;ns #abg7#ah7 6#abg7#bj71 _c 2 allocat$ 6a taxpay] t is a 8specifi$ memb]0 (! #afe ,"pn]%ips c#bg "pn]%ip )9 ! m1n+ assign$ 0subsec;n #bdh7#a74 ,a specifi$ memb] (a "pn]%ip 9 a fiscal p]iod or tax,n ye> is a memb] :o is a limit$ "pn] 7z def9$ 9 subsec;n #if7#b.d77 (! "pn]%ip at any "t 9 ! p]iod or ye>4 ,a specifi$ memb] c al 2 any memb] (! "pn]%ip o!r ?an a memb] :o on a regul>1 3t9u\s & sub/antial basis "?\t t "p (! p]iod or ye> dur+ : ! busi;s (! "pn]%ip is ord9>ily c>ri$ on & dur+ : he or %e is a memb] (! "pn]%ip is 7a7 actively 5gag$ 9 ^? activities (! "pn]%ip busi;s o!r ?an xs f9anc+2 or 7b7 c>ry+ on a simil> busi;s z t c>ri$ on 0! "pn]%ip 9 xs tax,n ye>1 o!rwise ?an z a memb] (a "pn]%ip4 ,6be 3sid]$ actively 5gag$ 9 ! activities (a "pn]%ip1 a "pn] wd norm,y 2 expect$ 63tribute "t1 lab\r & att5;n 6! busi;s (! "pn]%ip 6a su6ici5t ext5t t s* 3tribu;ns wd 2 a det]m9ant 9 ! su3ess;l op],n (! busi;s4 #aff ,"pn]%ips d#bg #if4 ,subsec;n #abg7#h.c7 provides t ! am.t 0: c]ta9 (! "pn]%ip 9ve/;t tax cr$its exce$s ! total (! am.ts det]m9$ "u subsec;ns #abg7#h7 & 7#h.a7 6be a limit$ "pn]'s %>e ( ^? 9ve/;t tax cr$its w 2 reallocat$ 6"pn]s :o 7 memb]s (! "pn]%ip "?\t xs fiscal p]iod & :o 7 n limit$ "pn]s dur+ t fiscal p]iod4 ,! 9ve/;t tax cr$its t may 2 reallocat$ "u subsec;n #abg7#h.c7 9clude ^? e>n$ = ,,sr&,,ed exp5ditures &1 = tax,n ye>s t 2g9 af #aiie1 =! ,,sr&,,ed qualifi$ exp5diture pool1 z well z ^? = repay;ts ( gov]n;t assi/.e1 non-gov]n;t assi/.e or 3tract pay;ts t reduc$ ! am.t (a qualifi$ exp5diture o!r ?an %>$-use-equip;t4 ,! am.t t may 2 reallocat$ 6a "picul> "pn] t 0 n a limit$ "pn] is ! por;n t is r1sona# 9 ! circum/.es 3sid]+ ! "pn]'s 9ve/;t 9 ! "pn]%ip1 9clud+ debt oblig,ns (! "pn]%ip4 ,! provi.ns ( p>agraph #abg7#h77b7 w apply 6prev5t a specifi$ memb] t is n a limit$ #afg ,"pn]%ips e#bg "pn] f a4+1 9 -put+ t memb]'s 9ve/;t tax cr$it =! ye> "u subsec;n #abg7#h71 any 9ve/;t tax cr$its reallocat$ "u subsec;n #abg7#h.c7 = ,,sr&,,ed exp5ditures &1 = tax,n ye>s t 2g9 af #aiie1 =! ,,sr&,,ed qualifi$ exp5diture pool1 z well z ^? = repay;ts ( gov]n;t assi/.e1 non- gov]n;t assi/.e or 3tract pay;ts t reduc$ ! am.t (a qualifi$ exp5diture o!r ?an %>$-use-equip;t4 ,fur!rmore1 9ve/;t tax cr$its t1 2c ( p>agraph #abg7#h77b71 _c 2 allocat$ 6a "pn] describ$ 9 p>agraph 7b7 (! def9i;n 8specifi$ memb]0 9 subsec;n #bdh7#a7 _c 2 reallocat$ 6o!r "pn]s4 ,z a result1 ^? 9ve/;t tax cr$its >e n o!rwise availa# = c>ry=w>d or c>ryback4 ,:5 subsec;ns #abg7#h7 & #abg7#h.c7 require an am.t 6be 9clud$ 9 calculat+ a "pn]'s 9ve/;t tax cr$it =a tax,n ye>1 ! "pn] may elect "u subsec;n #abg7#h.d71 9 ! "pn]'s return ( 9come "u ,"p ;,i =! ye>1 6h #afh ,"pn]%ips f#bg any por;n ( t am.t deem$ n 6h be5 a4$ 9 calculat+ ! "pn]'s 9ve/;t tax cr$it at ! 5d (! ye>4 -------------------------------------#bh #ig4 ,"u subsec;n #abg7#ab71 9ve/;t tax cr$its allocat$ 6a "pn] "u subsec;n #abg7#h7 t may r1sonably 2 3sid]$ 6relate 6deprecia# prop]ty >e deem$1 =! purposes ( subsec;n #ac7#g.a71 6h be5 rcvd 0! "pn]%ip1 at ! 5d ( xs fiscal p]iod 9 : ! alloc,n 0 made1 z assi/.e f a gov]n;t =! acquisi;n ( deprecia# prop]ty4 ,simil>ly1 "u subsec;n #abg7#ab.a71 9ve/;t tax cr$its allocat$ 6a "pn] "u subsec;n #abg7#h7 t may r1sonably 2 reg>d$ z relat+ 6curr5t exp5ditures on ,,sr&,,ed t >e qualifi$ exp5ditures w reduce ! total (! curr5t exp5ditures on ,,sr&,,ed t may 2 claim$ 0! "pn]%ip at ! 5d (! fiscal p]iod 9 : ! alloc,n 0 made4 ,9 circum/.es z describ$ 9 p>agraph #if1 :5 a "pn] elects "u subsec;n #abg7#h.d7 7t a por;n #afi ,"pn]%ips a#bh (! 9ve/;t tax cr$its t wd h o!rwise be5 allocat$ 6t "pn] 2 deem$ n 6h be5 requir$ "u subsec;n #abg7#h7 6be 9clud$ 9 calculat+ ! "pn]'s 9ve/;t tax cr$it71 ! elect$ por;n (! 9ve/;t tax cr$it w n reduce ! capital co/ ( deprecia# prop]ty acquir$ or ! am.t ( ,,sr&,,ed exp5ditures t may 2 deduct$ "u subsec;n #cg7#a7 9 calculat+ ! "pn]%ip 9come4 -------------------------------------#bi ,app5dix--,li/ ( ,c]ta9 8,approv$0 ,5tities = ,,sr&,,ed ,purposes ,! 9=m,n 9 respect ( an applic,n = 8approv$0 /atus = ,,sr&,,ed purposes &! subsequ5t grant+ ( approval is 3sid]$ 6be 3fid5tial4 ,g5],y1 ! rules "u sec;n #bda tr1t taxpay] 9=m,n z 3fid5tial & d n p]mit ! ,,ccra 6provide 9=m,n 9 respect (a taxpay] 6ano!r p]son4 ,s* 3fid5tial;y provi.ns wd preclude provid+ a public li/ (! 5tities t h be5 #agj ,app5dix a#bi grant$ 8approv$0 /atus4 ,h["e1 subsec;n #bda7#e7 p]mits 9=m,n reg>d+ a taxpay] 6be provid$ 6any o!r p]son )! 3s5t (! taxpay]4 ,9 response 6num]\s reque/s 6id5tify publicly ! univ]sities1 colleges1 associ,ns1 rese>* 9/itutes & simil> 9/itu;ns t h be5 8approv$0 =! purposes ( clauses #cg7#a77a77;ii77,a7 & 7,b7 & subsec;n #cg7#b71 ! ,,ccra has publi%$ a li/ ( s* approv$ 5tities t h giv5 _! 3s5t pursuant 6subsec;n #bda7#e74 ,! approval giv5 0! ,m9i/] pursuant 6! au?or;y grant$ 9 subsec;n #cg7#g7 is bas$ on 9=m,n provid$ & repres5t,ns made 0an 5t;y at ! "t x applies = s* approval4 ,*anges 9 ! organiz,n or ! activities ( an 5t;y may a6ect xs /atus z an approv$ 5t;y4 ,approv$ 5tities ..t h 3s5t$ 6be publicly .id5tifi$ z ( ,m>* #g1 #bjjc >e z foll[s3 ,alb]ta ,rese>* ,c\ncil1 ,$monton1 ,alb]ta #aga ,app5dix b#bi ,canadian ,>?ritis ,net"w1 ,toronto1 ,ont>io ,centre des technologies du gaz naturel 7,qu@ebec7 ,inc41 ,montr@eal1 ,qu@ebec ,c5tre = ,cold ,oc1n ,res\rces ,5g9e]+1 ,memorial ,univ]s;y ( ,newf.dl&1 ,/4 ,john's1 ,newf.dl& ,*n's ,hospital ( ,ea/]n ,ont>io 7,,cheo7 ,rese>* ,9/itute ,tru/1 ,ottawa1 ,ont>io ,g5esis ,rese>* ,f.d,n1 ,toronto1 ,ont>io 99 ,h>v>d ,univ]s;y1 ,massa*usetts1 ,,usa ,l'institut de recherche et de d@eveloppement en agroenvironnement 7,,irda2 ,rese>* & ,develop;t ,9/itute =! ,agri-,5viron;t71 ,qu@ebec ,london ,h1l? ,sci;es ,c5tre ,rese>* ,inc41 ,london1 ,ont>io #agb ,app5dix c#bi ,mc,gill ,univ]s;y-,montr1l ,*n's ,hospital ,rese>* ,9/itute1 ,montr1l1 ,quebec ,n,nal ,rese>* ,c\ncil ( ,canada1 ,ottawa1 ,ont>io ,ottawa ,h1l? ,rese>* ,9/itute1 ,ottawa1 ,ont>io ,rese>* ,bran*1 ,agriculture & ,agri- ,food ,canada1 ,ottawa1 ,ont>io ,! ,>?ritis ,rese>* ,c5tre ,society ( ,canada1 ,vanc\v]1 ,briti% ,columbia ,! ,john ,p4 ,rob>ts ,rese>* ,9/itute1 ,london1 ,ont>io ,! ,lawson ,rese>* ,9/itute1 ,london1 ,ont>io ,toronto ,hospital ,rese>* ,9/itute1 ,toronto1 ,ont>io 99 ,univ]s;y ( ,nor? ,dakota1 ,nor? ,dakota1 ,,usa ,vet]9>y ,9fecti\s ,41se ,organiz,n1 ,univ]s;y ( ,saskat*ewan1 ,saskat*ewan #agc ,app5dix d#bi 99 = purposes (a deduc;n "u p>agraph #cg7#b77b7 -------------------------------------#cj ,bullet9 ,revi.ns ,s9ce ! issu.e ( ,,it-#aea;,r#e on ,octob] #ag1 #bjjj1 "! h be5 no revi.ns 6p>agraph #a1 p>agraphs #c 6#e1 p>agraphs #h 6#aa1 p>agraphs #ac 6#ah1 p>agraphs #bj 6#ca1 p>agraphs #cd 6#ci1 p>agraphs #db 6#ej1 p>agraphs #ed 6#gi1 & p>agraphs #ha 6#ig4 ,a ref];e 6,bro*ure ,t#djeb &! ,,ccra's ,web site provid+ 9=m,n on ,,sr&,,ed 0 a4$ 6p>agraph #b4 ,7,octob] #aj1 #bjjb7' ,a ref];e 6,=m ,t#djhh 0 a4$ 6p>agraph #f4 ,7,octob] #aj1 #bjjb7' ,p>agraph #g has be5 revis$ 6reflect ! 5act;t ( p>agraph #cg7#a77d4#a7 : reduces ! pool ( deducti# ,,sr&,,ed exp5ditures 0! sup]-all[.e b5efit am.t4 ,7,octob] #aj1 #bjjb7' #agd ,bullet9 revi.ns a#cj ,p>agraph #ai has be5 am5d$ 69corporate ! italiciz$ note t 0 2l x s9ce ! revi.n 6p>agraph #bijj7#b77a7 (! ,regul,ns has n[ be5 5act$4 ,7,octob] #aj1 #bjjb7' ,9 p>agraph #cb a ref];e 6p>agraph #cc &! app5dix 0 a4$ af ! ^ws 8approv$ 5tities04 ,7,octob] #aj1 #bjjb7' ,p>agraph #dj has be5 revis$ 69clude ! 4cus.n ( 9t]e/-free loans f.d 9 =m] p>agraph #da4 ,9 a4i;n1 ! ref];e 6! ,ont>io ,rese>* & ,develop;t ,sup] ,all[.e has be5 delet$ s9ce x is no l;g] availa#4 ,7,octob] #aj1 #bjjb7' ,new p>agraph #da has be5 a4$ 6reflect ! new def9i;n ( 8sup]-all[.e b5efit am.t0 9 subsec;n #abg7#i74 ,7,octob] #aj1 #bjjb7' ,p>agraph #eb has be5 *ang$ 69clude ! am5d;t 6p>agraph 7a4#a7 (! def9i;n ( 89ve/;t tax cr$it0 : n[ requires t ! ,,sr&,,ed qualifi$ exp5diture pool 2 reduc$ 0! 8sup]-all[.e b5efit am.t0 = purposes ( calculat+ ! ,,itc4 ,9 #age ,bullet9 revi.ns b#cj a4i;n1 a s5t;e has be5 a4$ 6cl>ify t ! ,,itc recapture rules apply 6%>$-us$- equip;t z well z 6,,sr&,,ed exp5ditures (a capital nature4 ,7,octob] #aj1 #bjjb7' ,p>agraph #ec has be5 revis$ 6delete ! ref];e 6,atlantic ,canada's hi<] specifi$ p]c5tage rate ( ,,itc s9ce x has g5],y n be5 availa# s9ce #aiic4 ,7,octob] #aj1 #bjjb7' ,p>agraph #hj has be5 modifi$ 6reflect ! am5d;t 6p>agraph #abg7#aj.a77b7 : reduces a corpor,n's ,,sr&,,ed qualifi$ exp5diture pool eligi# =! a4i;nal ,,itc rate ( #ae@3p 0xs sup]-all[.e b5efit am.t4 ,7,octob] #aj1 #bjjb7' ,! new app5dix a4$ 6! bullet9 3ta9s -;ts on rel1s+ ! "ns ( c]ta9 approv$ 5tities = ,,sr&,,ed purposes z well z ! li/ ( s* 5tities t h 3s5t$ 6be publicly id5tifi$4 ,? 9=m,n 0 9clud$ 9 ! ,9come ,tax ,te*nical ,news ,no4 #bc dat$ ,june #ah1 #bjjb4 ,7,octob] #aj1 #bjjb7' #agf ,bullet9 revi.ns c#cj ,-;ts on ! grant+ ( approv$ 5t;y /atus h be5 a4$1 z well z ! "n (a rec5tly approv$ 5t;y4 ,7,may #ad1 #bjjc7' ,"?\t ! bullet91 we h made m9or *anges = cl>ific,n & r1dabil;y purposes & 65sure t c]ta9 o!r 9=m,n is curr5t4 #agg