Income Tax Act — I-3.3 37
d or the total of the amounts so allocated, as the case may be, does not exceed the amount determined by the formula A × B/365 where A is 5 times the Year’s Maximum Pensionable Earnings (as determined under section 18 of the Canada Pension Plan ) for the particular calendar year, and B is the lesser of 365 and the number of days in those taxation years on which the individual was a specified employee of one or more of the corporations, the maximum amount that may be claimed in respect of salary or wages of the individual for the purposes of clauses (8)(a)(ii)(A) and (B) by each of the corporations for each of those years is the amount so allocated to it for each of those years. Filing (9.4) An agreement referred to in subsection 37(9.3) is deemed not to have been filed by a taxpayer unless (a) it is in prescribed form; and (b) where the taxpayer is a corporation, it is accompanied by (i) where its directors are legally entitled to administer its affairs, a certified copy of their resolution authorizing the agreement to be made, and (ii) where 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. Deemed corporation (9.5) For the purposes of subsections 37(9.2) and 37(9.3) and this subsection, each (a) individual related to a particular corporation, (b) partnership of which a majority-interest partner is (i) an individual related to a particular corporation, or (ii) a corporation associated with a particular corporation, and (c) limited partnership of which a member whose liability as a member is not limited is (i) an individual related to a particular corporation, or (ii) a corporation associated with a particular corporation, is deemed to be a corporation associated with the particularcorporation. Time for election (10) Any election made under clause (8)(a)(ii)(B) for a taxation year by a taxpayer shall be filed by the taxpayer on the day on which the taxpayer first files a prescribed form referred to in subsection 37(11) for the year. Filing requirement (11) A prescribed form must be filed by a taxpayer with the Minister in respect of any expenditure, that would be incurred by the taxpayer in a taxation year that begins after 1995 if this Act were read without reference to subsection 78(4), that is claimed by the taxpayer for the year as a deduction under this section, on or before the day that is 12 months after the taxpayer’s filing-due date for the taxation year, containing (a) prescribed information in respect of the expenditure; and (b) claim preparer information , as defined in subsection 162(5.3). Failure to file (11.1) Subject to subsection (12), if the prescribed information in respect of an expenditure referred to in paragraph (11)(a) is not contained in the form referred to in subsection (11), no amount in respect of the expenditure may be deducted under subsection (1). Misclassified expenditures (12) If a taxpayer has not filed a prescribed form in respect of an expenditure in accordance with subsection 37(11), for the purposes of this Act, the expenditure is deemed not to be an expenditure on or in respect of scientific research and experimental development. Non-arm’s length contract — linked work (13) For the purposes of this section and sections 127 and 127.1, where (a) work is performed by a taxpayer for a person or partnership at a time when the person or partnership does not deal at arm’s length with the taxpayer, and (b) the work would be scientific research and experimental development if it were performed by the person or partnership, the work is deemed to be scientific research and experimental development. (14) [Repealed, 2026, c. 3, s. 5] (15) [Repealed, 2026, c. 3, s. 5] [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 37; 1994, c. 7, Sch. II, s. 21, c. 8, s.