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Bonus sr 3


2.1 Legislation The definition of salary or wages in the Act is as follows: "salary or wages except in sections 5 and 63 and the definition "death benefit" in this subsection, means the income of a taxpayer from an office or employment as computed under subdivision.
More details on unpaid amounts can be found in Interpretation Bulletin IT-109R2, Unpaid Amounts.
However, a retiring allowance is not considered to be salary or wages by definition.
For the purpose of determining the 10 threshold, shares owned by a person with whom the employee does not deal at arm's length are included.When appropriate and effective controls are in place, each of the sources identified below may provide the information required.For example, non-SR ED work includes the functions of planning (non technological direction, control, co-ordination, systems, or other functions at a managerial level.The four R D environments identified in section.2 are described below, along with sample labour allocation methods that might be appropriate in each environment.The total working hours in a year are 1837.5 hours (37.5 x 49).Subject to those adjustments, the software architect agreed that the R D team was directly engaged in the project, and that 100 of the salary or wages should be allocated to the project.The directly engaged salary or wages (or portion) is calculated on the time spent directly engaged in SR ED relative to the total time worked in the year: in this case the allowable salary would be 45,000 (90 x 45 of 100,000).In such cases, other evidence may be required to support the SR ED labour allocation.The system architect reviewed his monthly summaries and agreed with the approach in general, with two exceptions.Because of the variety of employees involved in shop floor SR ED, it is advantageous to claimants to develop a process to collect information at the start of a project, otherwise difficulties may be encountered in supporting the time an employee spends performing.Other evidence that would corroborate the payment of the wages would include: the issuance of a T4 slip to the employee; the reporting of the income by the employee; the actual payment of the amount (by cheque, cash, or journal entry crediting the employee's account.
The summaries document the amount of SR ED undertaken by the R D teams for a given period.




The allocation methods outlined here are for illustrative purposes only.The CRA is available to help claimants identify the type of supporting information and control systems needed to support a claim for SR ED labour expenditures.The use of an allocation method in determining SR ED labour expenditures will generally be acceptable to the CRA, as long as there is supporting information to establish the reasonableness of the method.Customer care It was recognized that the customer care group was developing and collecting the technical requirements that were being incorporated into the architecture.By the eighth month, the company had signed spielautomaten leasen yamaha contracts with a number of customers and the customer care group and product-engineering group were busy installing and improving an early release of the software.13.4.2 Supervisors' summaries Project managers or technical supervisors often prepare periodic weekly, monthly or quarterly summaries.However, supervision could include some non-technological functions, for example, long-term strategic planning, contract administration, etc., that directly relate to the prosecution of.These rules are discussed in section.0 for claimants using the proxy method and in section.0 for claimants using the traditional method.It should be noted that a dedicated R D department might be involved in SR ED and non-SR ED work.13.2 Research and development environment All cost allocation methods use information and documentation that comes from the claimants' information systems.Company A's SR ED salaries for 2008 tax year are 540,000 (9,000 x 12 months x 5 employees 540,000).Where two corporations are owned exclusively by one shareholder, such a transfer signed by authorized officers of each corporation will be accepted provided that a signed confirmation by the shareholder is filed with Form T1174 and states that he or she is the only shareholder.Legislative References Income Tax Act Section 7 Stock options Subsection 143.3(2) Options Limitation Paragraph 143.3(3 a) Limitation concerning issuance of a share Paragraph 143.3(3 b) Limitation concerning exercise of an option Subsection 143.3(5) Clarification.4 Retiring allowances A retiring allowance is included in the income.Each employee is given three weeks of vacation.In this type of environment, a claimant should be able to identify the employees performing SR ED within the business operations.However, there are restrictions concerning bonuses and remuneration based on profits of specified employees as well as a salary cap for specified employees (see section.1.1 ).



This eliminates the possibility of the PPA approximating SR ED overhead and other expenditures using salary or wages relating to another year.
For example, if the claimant carries out two SR ED projects in Canada and testing outside Canada is required for one of the projects, the total salary or wages expenditures for SR ED in Canada is taken into account for the calculation of the.

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