📄 CRA Form T1146 – Agreement to Transfer Qualified SR&ED Expenditures

Form T1146 is used in the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program to document an agreement between two parties who are not dealing at arm’s length to transfer qualified SR&ED expenditures from the performer (transferor) to the payer (transferee). ([canada.ca](https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1146.html))

📥 Download the Official T1146 Form

You must download and open the form PDFs locally using Acrobat Reader (version 10 or later):

Always use the latest official version from the CRA forms directory. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/forms-publications/forms.html))

📊 Purpose of the Form

Under the SR&ED program, if a taxpayer pays another party to conduct SR&ED but they are not at arm’s length, the expenditures ordinarily do not qualify for the investment tax credit (ITC). Form T1146 allows:

  • the transfer of qualified SR&ED expenditures from the performer to the paying party;
  • both parties to record the agreed amounts on their tax returns (for example on Form T661).

The agreement must be signed by both transferor and transferee and indicate the amount to be transferred. Supporting director resolutions may also be required.

📅 Filing Requirements & Deadline

CRA’s SR&ED filing policy specifies that Form T1146 must be filed:

  • by the transferor’s tax return due date for the year to which the agreement relates;
  • within the objection period for the transferor or the transferee’s tax year as defined by CRA.

It is recommended to attach T1146 to both parties’ tax returns (e.g. corporate T2 returns) as well as the related T661 SR&ED claim.

📍 How It Works in Practice

The form is used when one party (transferor) incurs SR&ED expenditures for another party (transferee) under contract, but they are not independent at arm’s length. Without T1146, the SR&ED expenditures cannot be claimed by the transferee for ITC purposes. The agreement reallocates the qualified expenditures to the transferee for SR&ED tax benefit calculation on Form T661.

🧠 Tips for Completing and Filing

  • Complete all sections accurately, including names, tax years, amounts to transfer and signatures.
  • Attach directors’ resolutions authorizing the agreement if applicable.
  • File with related SR&ED documentation, including T661 schedules showing transferred amounts.
  • Keep copies for both parties’ records in case CRA requests additional information.

🔗 Related CRA Forms & Guidance