Stock options allowed for SR&ED claim

Alcatel Canada Inc has won an appeal of a tax ruling that denied the eligibility of stock option benefits on the basis that they were not expenditures incurred under the scientific research and experimental development (SR&ED) tax incentive program. Alcatel won the appeal on February 24 before the Tax Court of Canada, which ruled that the company had incurred expenditures for SR&ED purposes. The ruling opens the door for other firms to generate investment tax credits by adding stock options and other non-cash benefits to employee salaries claimed for SR&ED purposes….