Précis: The taxpayer claimed refundable SRED investment tax credits (ITCs) in 2009, 2010 and 2011 in connection with the prototyping and certification of an amphibious aircraft known as the Seawind. CRA denied the ITCs on the basis that the taxpayer was under the de facto control of Mr. Richard Silva, who is a non-resident of Canada. Shortly prior to trial CRA added a new argument based on an allegation that the taxpayer was under the de jure control of Seawind Development Corporation (“Seawind Corp.”), a corporation legally controlled by Mr. Silva. The Court rejected the de jure control argument both because it was pleaded too late and on the evidence adduced.
Aeronautic Development Co. v. R - TCC: Taxpayer controlled de facto by non-resident - no ITCs for SREDREAD MORE »