I-3 - Taxation Act

Section 991 Disposition versions

2015-10-21

991. A corporation that was constituted exclusively for the purpose of carrying on or promoting scientific research and experimental development is exempt from tax if it has not acquired control of any other corporation, if it does not carry on any business and if at least 90% of the amount by which the corporation’s gross revenue for the period referred to in section 980 exceeds the aggregate of all amounts paid in the period by the corporation because of subsection 7.1 of section 149 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) or section 991.2 is expended in Canada

(a)  as an expenditure on scientific research and experimental development, within the meaning of section 230, but excluding an expenditure referred to in paragraph a of section 230.0.0.2, directly undertaken by or on behalf of the corporation, or

(b)  as a payment to any of the entities described in subparagraphs i and ii of paragraph d of subsection 1 of section 222, to be used for scientific research and experimental development.

For the purposes of subsection 1 of section 986 and of this section, such corporation shall include in computing its income and in determining its gross revenue all amounts contributed to the corporation to be used for scientific research and experimental development and the amount of all gifts made to it.

1972, c. 23, s. 723; 1987, c. 67, s. 179; 1990, c. 59, s. 334; 1997, c. 3, s. 71; 1997, c. 31, s. 91; 2015, c. 21, s. 354.

2006-03-01

991. A corporation that was constituted exclusively for the purpose of carrying on or promoting scientific research and experimental development is exempt from tax if it has not acquired control of any other corporation, if it does not carry on any business and if at least 90% of the amount by which the corporation’s gross revenue for the period referred to in section 980 exceeds the aggregate of all amounts paid in the period by the corporation because of subsection 7.1 of section 149 of the Income Tax Act (Revised Statutes of Canada, 1985, chapter 1, 5th Supplement) or section 991.2 is expended in Canada

(a)  as an expenditure on scientific research and experimental development, within the meaning of section 230, but excluding an expenditure referred to in subparagraph d of the first paragraph of section 230.0.0.2, directly undertaken by or on behalf of the corporation, or

(b)  as a payment to any of the entities described in paragraphs a and b of subsection 1 of section 222, to be used for scientific research and experimental development.

For the purposes of subsection 1 of section 986 and of this section, such corporation shall include in computing its income and in determining its gross revenue all amounts contributed to the corporation to be used for scientific research and experimental development and the amount of all gifts made to it.

1972, c. 23, s. 723; 1987, c. 67, s. 179; 1990, c. 59, s. 334; 1997, c. 3, s. 71; 1997, c. 31, s. 91.