Principal Issues: "Approved" status requested by XXXXXXXXXX for purposes of subsection 37(1)(a)(ii) of the Act.
Position: Approval recommended.
Reasons: Information submitted meets the conditions for approval, as set out in Application Policy Paper 96-10.
XXXXXXXXXX 2011-042448 Tim Fitzgerald, CGA
February 15, 2012
Dear XXXXXXXXXX :
Re: XXXXXXXXXX
This is in reply to your letter of October 7, 2011, in which you requested that XXXXXXXXXX be designated as an approved research institute for the purposes of clause 37(1)(a)(ii)(B) of the Income Tax Act ("Act").
The Minister's authority to grant or deny approval status is exercised pursuant to subsection 37(7) of the Act and is based on the information provided and representations made by an entity at the time the entity applies for such approval. Changes in the organization or the activities of an entity may affect its status as an approved entity.
Based on the information you submitted and information contained XXXXXXXXXX , my understanding of the facts is as follows:
1. XXXXXXXXXX
2. Over the yearsXXXXXXXXXX has absorbed other research institutes from within XXXXXXXXXX via an amalgamation. Prior to that amalgamation, XXXXXXXXXX was listed as an approved entity in the Appendix to Interpretation Bulletin, IT-151R5 (Consolidated) - Scientific Research and Experimental Development.
3. The sole purpose of XXXXXXXXXX is to engage in all forms of scientific research and experimental development ("SR&ED") activities, as that term is defined in subsection 248(1) of the Act, XXXXXXXXXX , practices and procedures of all kinds and to provide facilities for such research.
4. XXXXXXXXXX SR&ED activities will be carried on at:
XXXXXXXXXX
5. XXXXXXXXXX is a registered charity within the meaning of that term in subsection 248(1) of the Act and its charitable registration number is XXXXXXXXXX .
6. XXXXXXXXXX supports over XXXXXXXXXX researchers; over XXXXXXXXXX devoted to a broad spectrum of XXXXXXXXXX research. XXXXXXXXXX has over XXXXXXXXXX currently underway, with approximately XXXXXXXXXX starting every year.
7. Each scientist is aligned with one of the following eleven research axes (or programs).
XXXXXXXXXX
8. Paragraph 8 of the XXXXXXXXXX s By-Laws indicates that the "Directors shall not be remunerated for their services as such but shall be entitled to reimbursement for travelling and out-of-pocket expenses incurred in the performance of their duties as Directors."
9. The scientists working in each of XXXXXXXXXX research axes extensively publish articles about their research and results in various specialized XXXXXXXXXX publications XXXXXXXXXX XXXXXXXXXX . Accordingly, it can be said that the general public will be a beneficiary of the results of any successful SR&ED.
10. XXXXXXXXXX relies on grants and/or contracts from all levels of government including but not limited to: XXXXXXXXXX , provincial agencies, federal agencies and other various granting agencies.
11. XXXXXXXXXX has sufficient facilities, equipment and personnel to allow it to continue to carry out its SR&ED activities.
Approval:
Provided that the above statements constitute a complete and accurate disclosure of all of the relevant facts, and that XXXXXXXXXX continues to operate in the manner described above, I am pleased to advise that, pursuant to the authority granted under subsection 37(7) of the Act, XXXXXXXXXX is hereby approved as an approved research institute for the purposes of clause 37(1)(a)(ii)(B) of the Act.
Yours sincerely,
Brian McCauley
Assistant Commissioner
Legislative Policy and Regulatory Affairs Branch