Income Tax Act — I-3.3 127
axation year of a transferor exceeds the amount that would be the transferor’s SR&ED qualified expenditure pool at the end of the particular year if no agreement were filed with the Minister in respect of the particular year, the least of the amounts determined under paragraphs 127(13)(a) to 127(13)(c) in respect of each such agreement is deemed to be nil. Identification of amounts transferred (14) Where (a) a transferor and a transferee have filed an agreement under subsection 127(13) in respect of a taxation year of the transferor, (b) the agreement includes a statement identifying the amount specified in the agreement for the purpose of subsection 127(13), or a part of that amount, as being related to (i) a particular qualified expenditure included in the value of A in the formula in the definition SR&ED qualified expenditure pool in subsection 127(9) for the purpose of determining the transferor’s SR&ED qualified expenditure pool at the end of the year, or (ii) a particular amount included in the value of B in the formula in that definition for the purpose of determining the transferor’s SR&ED qualified expenditure pool at the end of the year that is deemed by paragraph 127(14)(d) to be a qualified expenditure, and (c) the total of all amounts so identified in agreements filed by the transferor under subsection 127(13) as being related to the particular expenditure or the particular amount does not exceed the particular expenditure or the particular amount, as the case may be, for the purposes of this section (other than the description of A in the definition SR&ED qualified expenditure pool in subsection 127(9)) and section 127.1, (d) the amount so identified that is included in the value of B in the formula in that definition for the purpose of determining the transferee’s SR&ED qualified expenditure pool at the end of the taxation year of the transferee is deemed to be a qualified expenditure either of a current nature or of a capital nature, incurred by the transferee in that year, where the particular expenditure or the particular amount was an expenditure of a current nature or of a capital nature, as the case may be, and (e) except for the purpose of paragraph 127(14)(b), the amount of the transferor’s qualified expenditures of a current nature incurred in the taxation year of the transferor in respect of which the agreement is made is deemed not to exceed the amount by which the amount of such expenditures otherwise determined exceeds the total of all amounts identified under paragraph 127(14)(b) by the transferor in agreements filed under subsection 127(13) in respect of the year as being related to expenditures of a current nature. Invalid agreements (15) An agreement or amended agreement referred to in subsection 127(13) between a transferor and a transferee is deemed not to have been filed with the Minister for the purpose of that subsection where (a) it is not in prescribed form; (b) it is not filed (i) on or before the transferor’s filing-due date for the particular taxation year to which the agreement relates, (ii) in the period within which the transferor may serve a notice of objection to 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 transferor’s particular year; (c) it is not accompanied by, (i) where the transferor 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 transferor 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 enti