Re: Scientific Research Expenditures
Thank you for your letter of September 19, 1991 concerning approved entities for purposes of the scientific research and experimental development incentives in the Income Tax Act.
We are reviewing, with other branches and departments, your request that all hospital authorities and public colleges be approved by our Department for the purposes of clause 37(1)(a)(ii)(B) of the Income Tax Act. We appreciate receiving the text that you submitted which sets out the criteria for obtaining automatic approval. Hopefully we will be able to complete our review in time to have any new position reflected in the revision to Interpretation Bulletin IT-151R4 which is presently under way.
An opinion that we received from our legal advisers has confirmed that the status of an approved entity is subject to section 241 of the Act and is considered to be confidential income tax information relating to a particular taxpayer. Therefore, the Department could disclose the name of an approved entity only when written consent to release the information has been provided by that entity. As discussed at our meeting we will consider requesting that each entity seeking approval provide us with an authorization to disclose their identity by the use of a published list or other means.
Yours truly,
B W DathDirectorBusiness and General DivisionRulings DirectorateLegislative and IntergovernmentalAffairs Branch