Income Tax Act — I-3.3 127
o an assessment of tax payable under this Part for the particular year, or (iii) in the period within which the transferee may serve a notice of objection to an assessment of tax payable under this Part for its first taxation year that ends at or after the end of the taxpayer’s particular year; (c) it is not accompanied by, (i) where the taxpayer is a corporation and its directors are legally entitled to administer its affairs, a certified copy of their resolution authorizing the agreement to be made, (ii) where the taxpayer is a corporation and its directors are not legally entitled to administer its affairs, a certified copy of the document by which the person legally entitled to administer its affairs authorized the agreement to be made, (iii) where the transferee is a corporation and its directors are legally entitled to administer its affairs, a certified copy of their resolution authorizing the agreement to be made, and (iv) where the transferee is a corporation and its directors are not legally entitled to administer its affairs, a certified copy of the document by which the person legally entitled to administer its affairs authorized the agreement to be made; or (d) an agreement amending the agreement has been filed in accordance with subsection 127(20) and this subsection. Partnership’s taxation year (23) For the purposes of subsections 127(18) to 127(22), the taxation year of a partnership is deemed to be its fiscal period and its filing-due date for a taxation year is deemed to be the day that would be its filing-due date for the year if it were a corporation. Exclusion from qualified expenditure (24) Where (a) a person or partnership (referred to in this subsection as the “first person”) does not deal at arm’s length with another person or partnership (referred to in this subsection as the “second person”), (b) there is an arrangement under which an amount is paid or payable by the first person to a person or partnership with which the first person deals at arm’s length and an amount is received or receivable by the second person from a person or partnership with which the second person deals at arm’s length, and (c) one of the main purposes of the arrangement can reasonably be considered to be to cause the amount paid or payable by the first person to be a qualified expenditure, the amount paid or payable by the first person is deemed not to be a qualified expenditure. Deemed contract payment (25) Where (a) a person or partnership (referred to in this subsection as the “first person”) deals at arm’s length with another person or partnership (referred to in this subsection as the “second person”), (b) there is an arrangement under which an amount is paid or payable by the first person to a person or partnership (other than the second person) and a particular amount is received or receivable in respect of scientific research and experimental development by the second person from a person or partnership that is not a taxable supplier in respect of the particular amount, and (c) one of the main purposes of the arrangement can reasonably be considered to be to cause the amount received or receivable by the second person not to be a contract payment, the amount received or receivable by the second person is deemed to be a contract payment in respect of scientific research and experimental development. Unpaid amounts (26) For the purposes of subsections 127(5) to 127(25) and section 127.1, a taxpayer’s expenditure described in paragraph 37(1)(a) that is unpaid on the day that is 180 days after the end of the taxation year in which the expenditure is otherwise incurred is deemed (a) not to have been incurred in the year; and (b) to be incurred at the time it is paid. Recapture of investment tax credit (27) Where (a) a taxpayer acquired a particular property from a person or partnership in a taxation year of the taxpayer or in any of the 10 preceding taxation years, (b) the cost, or a portion of the cost, of the particular