Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Meaning of "software engineering".
Also, whether such activity is an "engineering activity" for purposes of OETC in section 122.3.
Position: Meaning of "software engineering" is found in TCC decision Gabie v. Canada (1998 T.C.J. No. 974) and in paragraph 6.10(f) of IC-86-4R3.
Software engineering qualifies as an engineering activity in clause 122.3(1)(b)(i) of the Act for purposes of the OETC.
Reasons: n/a
Oct. 31, 2000
G. Middleton
Memo to file # 2000-005133
Ken Major phoned T. Hooley of the Vancouver TSO on or about October 27th, 2000 in response to the form T196 enquiry from the TSO for clarification of the meaning of "software engineering" for the purpose of qualifying for the OETC as an "engineering activity" in clause 122.3(1)(b)(i)(B) of the Act.
Comments with respect to the meaning of "software engineering" can be found in the 1998 Tax Court of Canada decision Gabie v. Canada (1998 T.C.J. No. 974) and in paragraph 6.10(f) of Information Circular 86-4R3 entitled "Scientific Research and Experimental Development" dated May 24, 1994.
Mr. Major explained that there was insufficient information available to answer T. Hooley's enquiry; however, if the activities of a particular taxpayer meet the meaning of "software engineering" as described in the material in the preceding paragraph, then such activities would qualify as "engineering activities" for the purposes of the OETC in section 122.3 of the Act.
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