I-3 - Taxation Act

Section 1029.8.0.0.2 Disposition versions

2011-02-17

1029.8.0.0.2. For the purposes of this division, the following rules apply:

(a)  an individual who participates as a clinical trial subject in such a trial carried on by another person or partnership, in accordance with the standards set by the Food and Drug Regulations (C.R.C., c. 870) made under the Food and Drugs Act (R.S.C. 1985, c. F-27), is deemed to be carrying on work relating to scientific research and experimental development; and

(b)  the portion of a consideration paid under a contract, that is referred to in any of subparagraphs c, e, g and i of the first paragraph of section 1029.7 or 1029.8, must not be reduced by the amount of an indemnity described in the second paragraph that is attributable to the portion of the consideration.

The indemnity to which subparagraph b of the first paragraph refers means an indemnity paid to an individual who participates as a clinical trial subject in such a trial carried on by another person or partnership, in accordance with the standards set by the Food and Drug Regulations made under the Food and Drugs Act, and who is not an employee of

(a)  in the case of a portion of a consideration paid under a contract or particular contract referred to in subparagraph c or e of the first paragraph of section 1029.7 or 1029.8 to a person or partnership with whom the taxpayer was dealing at arm’s length at the time the contract or particular contract was entered into, that person or partnership; and

(b)  in the case of a portion of a consideration that has been paid again under a particular contract referred to in subparagraph g or i of the first paragraph of section 1029.7 or 1029.8 to another person or partnership with whom the taxpayer was dealing at arm’s length at the time the particular contract was entered into, that other person or partnership.

2011, c. 1, s. 58.