Précis: The facts in this case were somewhat of a clone of those in the decision of the Federal Court of Appeal blogged earlier on this site: Lyrtech RD Inc. v. The Queen (the Tax Court in fact noted that the same accounting firm was used to implement both structures). To put a complex matter somewhat simply Solutions MindReady inc. (“Public”), a public company, spun off its SRED activities to a new corporation, Solutions MindReady R&D inc. (“Private”), which was owned by a Trust affiliated with Public. Private claimed SRED credits in respect of its taxation years ending on November 29, 2005, and December 31, 2005. The Minister denied the credits on the basis that Private was de facto controlled by Public and therefore not entitled to claim SRED credits.
Solutions MindReady R&D Inc. v. R. - TCC: Taxpayer under de facto control of public companyREAD MORE »