I-3 - Taxation Act

Section 1029.8.16.1.6 Disposition versions

2015-10-21

1029.8.16.1.6. The expenditure to which the definition of “qualified expenditure” in the first paragraph of section 1029.8.16.1.1 refers is

(a)  an expenditure of a current nature incurred by or on behalf of a taxpayer or partnership in respect of the general administration or management of a business, including

i.  the administrative salary or wages, including related benefits, of a person none or substantially none of whose duties are oriented toward the prosecution of scientific research and experimental development, except to the extent that such expenditure is a prescribed expenditure,

ii.  a legal or accounting fee,

iii.  an amount referred to in any of sections 147, 148, 160, 161, 163, 176, 176.4 and 179,

iv.  an entertainment expense,

v.  an advertising or selling expense,

vi.  a conference or convention expense,

vii.  a due or fee in respect of membership in a scientific or technical organization, and

viii.  a fine or penalty;

(b)  an expenditure of a current nature incurred by or on behalf of a taxpayer or partnership for the maintenance and upkeep of premises, facilities or equipment to the extent that the expenditure is not attributable to the prosecution of scientific research and experimental development;

(c)  (paragraph repealed);

(d)  an expenditure incurred by or on behalf of a taxpayer or partnership to acquire property if the property has been used, or acquired for use or lease, for any purpose whatever before it was acquired;

(e)  an expenditure made to acquire rights in, or arising out of, scientific research and experimental development;

(f)  an expenditure related to scientific research and experimental development in respect of which an amount is deductible under sections 710 to 716.0.11 or 752.0.10.1 to 752.0.10.26 in computing taxable income or tax payable under this Part, as the case may be;

(g)  an expenditure, to the extent that the taxpayer or partnership having incurred it or, where applicable, the person or another partnership having incurred it on behalf of the taxpayer or partnership has received or is entitled to receive a reimbursement in respect of the expenditure from a person resident in Canada, other than

i.  the State or Her Majesty in right of Canada or a province, other than Québec,

ii.  a mandatary of the State or of Her Majesty in right of Canada or a province, other than Québec,

iii.  a corporation, commission or association that is controlled, directly or indirectly in any manner whatever, by the State or Her Majesty in right of Canada or a province, other than Québec, or by a mandatary of the State or of Her Majesty in right of Canada or a province, other than Québec, or

iv.  a municipality in Canada or a municipal or public body performing a function of government in Canada;

(h)  an expenditure, to the extent that the taxpayer or partnership having incurred it or, where applicable, the person or another partnership having incurred it on behalf of the taxpayer or partnership has received or is entitled to receive a reimbursement in respect of the expenditure from a person not resident in Canada and to the extent that the reimbursement is deductible by the person in computing taxable income earned in Canada for a taxation year; and

(i)  an expenditure described in section 230.0.0.2.

2007, c. 12, s. 122; 2012, c. 8, s. 189; 2015, c. 21, s. 400.

2012-05-09

1029.8.16.1.6. The expenditure to which the definition of “qualified expenditure” in the first paragraph of section 1029.8.16.1.1 refers is

(a)  an expenditure of a current nature incurred by or on behalf of a taxpayer or partnership in respect of the general administration or management of a business, including

i.  the administrative salary or wages, including related benefits, of a person none or substantially none of whose duties are oriented toward the prosecution of scientific research and experimental development, except to the extent that such expenditure is a prescribed expenditure,

ii.  a legal or accounting fee,

iii.  an amount referred to in any of sections 147, 148, 160, 161, 163, 176, 176.4 and 179,

iv.  an entertainment expense,

v.  an advertising or selling expense,

vi.  a conference or convention expense,

vii.  a due or fee in respect of membership in a scientific or technical organization, and

viii.  a fine or penalty;

(b)  an expenditure of a current nature incurred by or on behalf of a taxpayer or partnership for the maintenance and upkeep of premises, facilities or equipment to the extent that the expenditure is not attributable to the prosecution of scientific research and experimental development;

(c)  an expenditure of a capital nature incurred by or on behalf of a taxpayer or partnership to acquire property, except any such expenditure that, at the time it was incurred, was for the provision of premises, facilities or equipment if, at the time of the acquisition of the premises, facilities or equipment, it was intended

i.  that the premises, facilities or equipment would be used during all or substantially all of their operating time in their expected useful life for the prosecution of scientific research and experimental development undertaken in Canada, and

ii.  that all or substantially all of the value of the premises, facilities or equipment would be consumed in the prosecution of scientific research and experimental development undertaken in Canada;

(d)  an expenditure of a capital nature incurred by or on behalf of a taxpayer or partnership to acquire property if the property has been used or acquired for use or lease, for any purpose whatever, before it was acquired;

(e)  an expenditure made to acquire rights in, or arising out of, scientific research and experimental development;

(f)  an expenditure related to scientific research and experimental development in respect of which an amount is deductible under sections 710 to 716.0.11 or 752.0.10.1 to 752.0.10.26 in computing taxable income or tax payable under this Part, as the case may be;

(g)  an expenditure of a current or capital nature, to the extent that the taxpayer or partnership having incurred it or, where applicable, the person or another partnership having incurred it on behalf of the taxpayer or partnership has received or is entitled to receive a reimbursement in respect of the expenditure from a person resident in Canada, other than

i.  the State or Her Majesty in right of Canada or a province, other than Québec,

ii.  a mandatary of the State or of Her Majesty in right of Canada or a province, other than Québec,

iii.  a corporation, commission or association that is controlled, directly or indirectly in any manner whatever, by the State or Her Majesty in right of Canada or a province, other than Québec, or by a mandatary of the State or of Her Majesty in right of Canada or a province, other than Québec, or

iv.  a municipality in Canada or a municipal or public body performing a function of government in Canada;

(h)  an expenditure of a current or capital nature, to the extent that the taxpayer or partnership having incurred it or, where applicable, the person or another partnership having incurred it on behalf of the taxpayer or partnership has received or is entitled to receive a reimbursement in respect of the expenditure from a person not resident in Canada and to the extent that the reimbursement is deductible by the person in computing taxable income earned in Canada for a taxation year; and

(i)  an expenditure described in section 230.0.0.2.

2007, c. 12, s. 122; 2012, c. 8, s. 189.

2007-11-07

1029.8.16.1.6. The expenditure to which the definition of “qualified expenditure” in the first paragraph of section 1029.8.16.1.1 refers is

(a)  an expenditure of a current nature incurred by or on behalf of a taxpayer or partnership in respect of the general administration or management of a business, including

i.  the administrative salary or wages, including related benefits, of a person none or substantially none of whose duties are oriented toward the prosecution of scientific research and experimental development, except to the extent that such expenditure is a prescribed expenditure,

ii.  a legal or accounting fee,

iii.  an amount referred to in any of sections 147, 148, 160, 161, 163, 176, 176.4 and 179,

iv.  an entertainment expense,

v.  an advertising or selling expense,

vi.  a conference or convention expense,

vii.  a due or fee in respect of membership in a scientific or technical organization, and

viii.  a fine or penalty;

(b)  an expenditure of a current nature incurred by or on behalf of a taxpayer or partnership for the maintenance and upkeep of premises, facilities or equipment to the extent that the expenditure is not attributable to the prosecution of scientific research and experimental development;

(c)  an expenditure of a capital nature incurred by or on behalf of a taxpayer or partnership to acquire property, except any such expenditure that, at the time it was incurred, was for the provision of premises, facilities or equipment if, at the time of the acquisition of the premises, facilities or equipment, it was intended

i.  that the premises, facilities or equipment would be used during all or substantially all of their operating time in their expected useful life for the prosecution of scientific research and experimental development undertaken in Canada, and

ii.  that all or substantially all of the value of the premises, facilities or equipment would be consumed in the prosecution of scientific research and experimental development undertaken in Canada;

(d)  an expenditure of a capital nature incurred by or on behalf of a taxpayer or partnership to acquire property if the property has been used or acquired for use or lease, for any purpose whatever, before it was acquired;

(e)  an expenditure made to acquire rights in, or arising out of, scientific research and experimental development;

(f)  an expenditure related to scientific research and experimental development in respect of which an amount is deductible under any of sections 710 to 716.0.3 and 752.0.10.1 to 752.0.10.18 in computing taxable income or tax payable under this Part, as the case may be;

(g)  an expenditure of a current or capital nature, to the extent that the taxpayer or partnership having incurred it or, where applicable, the person or another partnership having incurred it on behalf of the taxpayer or partnership has received or is entitled to receive a reimbursement in respect of the expenditure from a person resident in Canada, other than

i.  the State or Her Majesty in right of Canada or a province, other than Québec,

ii.  a mandatary of the State or of Her Majesty in right of Canada or a province, other than Québec,

iii.  a corporation, commission or association that is controlled, directly or indirectly in any manner whatever, by the State or Her Majesty in right of Canada or a province, other than Québec, or by a mandatary of the State or of Her Majesty in right of Canada or a province, other than Québec, or

iv.  a municipality in Canada or a municipal or public body performing a function of government in Canada;

(h)  an expenditure of a current or capital nature, to the extent that the taxpayer or partnership having incurred it or, where applicable, the person or another partnership having incurred it on behalf of the taxpayer or partnership has received or is entitled to receive a reimbursement in respect of the expenditure from a person not resident in Canada and to the extent that the reimbursement is deductible by the person in computing taxable income earned in Canada for a taxation year; and

(i)  an expenditure described in section 230.0.0.2.

2007, c. 12, s. 122.