When the corporation is the transferor, i.e. the entity that transfers an amount of SR&ED qualified expenditures, as indicated on line 010 of the agreement,
- Form T1146 will be applicable;
- the check box (“yes”) on line 263, Has the corporation entered into an agreement to transfer qualified expenditures incurred in respect of SR&ED contracts?, in Schedule 200 (Jump Code: J) will be selected; and
- the total amounts of SR&ED qualified expenditures on line 010, The transferor and the transferee identified below hereby agree to transfer the amount of SR&ED qualified expenditures to the transferee, in each applicable copy of Form T1146 where the corporation is designated as the transferor will be carried over to Form T661 (Jump Code: 661), on line 544, Non-arm’s length transactions – qualified expenditures you transferred, with regard to current expenditures.
When the corporation is the transferee, i.e. the corporation that receives an amount of SR&ED qualified expenditures, as indicated on line 010 of the agreement,
- Form T1146 will be applicable;
- the check box (“yes”) on line 263, Has the corporation entered into an agreement to transfer qualified expenditures incurred in respect of SR&ED contracts?, in Schedule 200 (Jump Code: J) is selected; and
- the total of all amounts of SR&ED qualified expenditures on line line 010, The transferor and the transferee identified below hereby agree to transfer the amount of SR&ED qualified expenditures to the transferee, in each applicable copy of Form T1146 where the corporation is designated as the transferor will be carried over to Form T661 (Jump Code: 661), on line 508, Qualified expenditures transferred 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