One of the court cases on the minds of SR&ED professionals across the country is that of Fio Corporation v. the Queen. This particular court case involves the appeal of a SR&ED claim decision. During an ongoing appeal of Fio’s 2007 and 2008 claims, the CRA used evidence it collected and further reduced the prior approved SR&ED through a reassessment.
In the end, the Tax Court of Canada ruled that CRA breached the “implied undertaking” rule during a SR&ED appeal case, but did not hold CRA in contempt. Litigators went after CRA for $100,000 and were awarded with just $25,000.
This is considered a potentially ground-breaking case because of the use of discovery documentation as well as the issue regarding contempt sanctions.
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