Alisa Apostle

The Appellant appealed reassessments for its 2010 and 2011 taxation years, arguing that certain software development projects qualified as scientific research and experimental development (SR&ED).

The Tax Court of Canada found that the projects involved technological uncertainty that could not be resolved by routine engineering and that the Appellant formulated and tested hypotheses to achieve technological advancements.

The appeals were allowed, and the reassessments were referred back to the Minister to allow the claimed SR&ED expenditures and corresponding investment tax credits.

The appellant appealed reassessments disallowing business losses claimed for the 2011, 2012, and 2013 taxation years.

The losses related to management services provided to an art gallery operated by his spouse.

The Tax Court of Canada found that the activity had a personal element and was not carried on in a sufficiently commercial manner to constitute a source of business income.

The appeal was dismissed with costs.