I-3 - Taxation Act

Section 230.0.0.2 Disposition versions

2015-10-21

230.0.0.2. Despite the first paragraph of section 230, expenditures on scientific research and experimental development do not include

(a)  any expenditure made in respect of the acquisition or lease of animals, other than laboratory animals within the meaning of the regulations, or in respect of any other similar kind of transaction regarding such animals; and

(b)  a payment to any of the following entities to the extent that the payment may reasonably be considered to have been made to enable the entity to acquire rights in, or arising out of, scientific research and experimental development:

i.  a corporation resident in Canada and exempt from tax under section 991, a research institute recognized by the Minister or an association recognized by the Minister, with which the taxpayer does not deal at arm’s length,

ii.  a corporation other than a corporation referred to in subparagraph i, or

iii.  a university, college or organization recognized by the Minister.

1989, c. 5, s. 55; 1991, c. 8, s. 2; 1993, c. 64, s. 24; 1995, c. 1, s. 28; 1997, c. 3, s. 71; 2015, c. 21, s. 144.

2006-03-01

230.0.0.2. Notwithstanding the first paragraph of section 230, expenditures on scientific research and experimental development shall not include

(a)  any capital expenditure made in respect of the acquisition of a building, other than a special-purpose building, within the meaning of the regulations, including a leasehold interest therein;

(b)  any outlay or expense made or incurred for the use of, or the right to use, a building other than a prescribed special-purpose building, within the meaning of the regulations;

(c)  a payment described in the second paragraph that must be used for scientific research and experimental development and is made by a taxpayer to

i.  a corporation resident in Canada and exempt from tax under section 991, a research institute recognized by the Minister or an association recognized by the Minister, with which the taxpayer does not deal at arm’s length;

ii.  a corporation other than a corporation referred to in subparagraph i;

iii.  a university, college or organization recognized by the Minister;

(d)  any expenditure made in respect of the acquisition or lease of animals, other than laboratory animals within the meaning of the regulations, or in respect of any other similar kind of transaction regarding such animals.

The payment referred to in subparagraph c of the first paragraph is

(a)  a payment to an entity described in subparagraph i or ii of the said subparagraph c, to the extent that the payment may reasonably be considered to have been made to enable the entity to acquire a building or a leasehold interest in a building or to pay the rental expense in respect of a building; or

(b)  a payment to an entity described in subparagraph iii of the said subparagraph c, to the extent that the payment may reasonably be considered to have been made to enable the entity to acquire a building, or a leasehold interest in a building, in which the taxpayer has, or may reasonably be expected to acquire, an interest;

(c)  a payment to any of the entities described in subparagraphs i to iii of the said subparagraph c, to the extent that the payment may reasonably be considered to have been made to enable the entity to acquire rights in, or arising out of, scientific research and experimental development.

1989, c. 5, s. 55; 1991, c. 8, s. 2; 1993, c. 64, s. 24; 1995, c. 1, s. 28; 1997, c. 3, s. 71.