When the corporation is the transferor, i.e. the corporation that transfers an assistance amount for SR&ED, as indicated on line 010 of the agreement,
- form T1145 will be applicable;
- the check box (“yes”) on line 262, Has the corporation entered into an agreement to allocate assistance for SR&ED carried out in Canada?, will be selected in Schedule 200 (Jump Code: J); and
- no amount will be carried over to Form T661.
When the corporation is the transferee, i.e. the corporation that receives an assistance amount for SR&ED, as indicated on line 010 of the agreement,
- form T1145 will be applicable;
- the check box (“yes”) on line 262, Has the corporation entered into an agreement to allocate assistance for SR&ED carried out in Canada?, will be selected in Schedule 200 (Jump Code: J); and
- the total of all assistance amounts on line 010, The transferor and the transferee identified below hereby agree to allocate this amount of assistance for SR&ED to the transferee, of each applicable copy of Form T1145 in which the corporation has been designated as the transferee will be carried over to Form T661 (Jump Code: 661), on line 538, Non arm’s length transactions - assistance allocated to you, with regard to current expenditures.
Supporting Documents
In support of the authorization to transfer, you have to provide copies of directors’ resolutions either authorizing the agreement or delegating authority to an authorized signing officer. If these documents were not already submitted in a prior year (fields 030 and 035) then they must accompany the T2 Bar Code return. If you are electronically filing the return, then these documents should be sent to the appropriate tax centre and the covering letter should indicate that they are in support of an electronically filed return.
See also