26 October 2022 Internal T.I. 2021-0915091I7 - SR&ED Prescribed Expenditures -- summary under Subparagraph 2902(b)(ii)

The Claimant purchased a used machine which it modified as part of its SR&ED project and which was accepted as being purchased on current account as it was transformed in the prosecution of the SR&ED. The Directorate found that the expenditure for the used machine was in respect of “the acquisition of property that has been used or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer” so that, by virtue of being a prescribed expenditure pursuant to Reg. 2902(b)(ii) and, thus, ineligible for an ITC. It indicated in this regard that the acquisition cost being a current expenditure was not inconsistent with there having been an “acquisition of property.”