Bill C-4 was tabled on March 21, 2013, and proposed ammendments to the Income Tax Act. This bill has received royal assent and has become law.
A summary of the new ammendments are as follows:
- Undeducted SR&ED expenditures from before an acquisition of control may be carrieed forward for use in the current year only if the business to which the expenditures relate is carried on throughout the current year by the corporation for a reasonable expectation of profit and only to the extent of its income for the current year.
- A penalty of $1,000 can be levied in the case of false or incomplete information disclosure of the identity of and the terms of any arrangement with the SR&ED claim preparer.