Immunovaccine v. R. – SCC: Leave application dismissed – SRED – meaning of “government assistance”

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Immunovaccine Technologies Inc. v. Canada (SCC – Leave Application Dismissed – March 26, 2015).

Précis: On March 26, 2015 the Supreme Court of Canada released its decision dismissing the application of Immunovaccine Technologies Inc. for leave to appeal from a decision of the Federal Court of Appeal holding that loans received by it from the Atlantice Canada Opportunities Agency (“ACOA”) were government assistance which reduced that amount of its scientific research and experimental development (“SRED”) claims.

Decision: Immunovaccine received loans from ACOA in the period from 2005 through 2008. CRA treated those loans as “government assistance” reducing the amount of its SRED claims. Immunovaccine appealed unsuccessfully to the Tax Court and then appealed unsuccessfully to the Federal Court of Appeal. The Court of Appeal held that although the loans were repayable in some circumstances the language found in the definition of “government assistance” in subsection 127(9) of the Income Tax Act contemplated arrangements “which are not purely gratuitous and unilateral”. The application for leave was dismissed with costs.

Source: Supreme Advocacy Letter #16
http://supremeadvocacy.ca/

About the Author

Bill Innes

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William (Bill) Innes has practiced in the areas of tax litigation, taxation and estates and trusts since 1975. His practice includes all aspects of dispute resolution in taxation matters under both federal and provincial legislation, but with a special emphasis on appeals under the Income Tax Act (Canada). In addition, Bill acts as counsel in matters of estate and trust law and serves as an advisor to large charitable and non-profit institutions on issues of trusts, estates and taxation. He frequently appears as counsel before the Tax Court of Canada, the Federal Court and the Federal Court of Appeal.

For advice on tax litigation matters contact Bill:

WILLIAM I. INNES

email: william.innes@williaminnes.ca
416-869-2204
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Bill is listed and recognized in the 2020 edition of Best Lawyers in Canada; Lexpert/ROB Special Edition 2020 – Canada’s Leading Litigation Lawyers; 2020 Canadian Legal Lexpert Directory - Consistently Recommended - Litigation - Corporate Tax; and Canadian Who’s Who.

Bill is also AV Peer and Judicial Review Rated according to Martindale-Hubbell (Preeminent), its highest level of professional ranking.

Bill is a member of the Editorial Boards of the Canadian Tax Journal and Tax Litigation and a past member of the Editorial Boards of the CCH Canadian Tax Reporter and the CCH Annotated Income Tax Act.

Bill is the author or co-author of several legal texts and numerous articles, including:

Tax Evasion, William I. Innes. (Scarborough, Ont.: Carswell, 1995 - Looseleaf).

The essential GAAR manual: policies, principles and procedures. William I. Innes, Patrick J. Boyle, Joel A. Nitikman. (Toronto: CCH Canadian, 2006).
Charities, non-profits and philanthropy under the Income Tax Act, William I. Innes, Patrick J. Boyle. (Toronto: CCH Canadian: Fraser Milner Casgrain, 2006).
Federal tax practice, William Innes & Brendan Bissell, (Toronto: CCH Canadian, 2007).

Bill was a member of the International Academy of Estate and Trust Law from 1992 to 2012.

Immunovaccine v. R. – SCC: Leave application dismissed – SRED – meaning of “government assistance”

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