This consolidation is unofficial and is for reference only. For the official version of the regulations, consult the original documents on file with the Registry of Regulations, or refer to the Royal Gazette Part II. Regulations are amended frequently. Please check the list of Regulations by Act to see if there are any recent amendments to these regulations filed with our office that are not yet included in this consolidation. Although every effort has been made to ensure the accuracy of this electronic version, the Registry of Regulations assumes no responsibility for any discrepancies that may have resulted from reformatting. This electronic version is copyright © 2016, Province of Nova Scotia, all rights reserved. It is for your personal use and may not be copied for the purposes of resale in this or any other form.
ISO9000 Income Tax Credit Regulations
made under subsection 45(5) of the
Income Tax Act
R.S.N.S. 1989, c. 217
O.I.C. 94-795 (October 5, 1994), N.S. Reg. 187/94
1 These regulations may be cited as the ISO9000 Income Tax Credit Regulations.
2 All terms defined in the Income Tax Act have the same meaning in these regulations, unless otherwise defined.
3 In Section 13C  of the Act and these regulations
(a) “expenditure with respect to audit” means an expenditure paid to a qualified registrar for reviewing documentation, performing on-site assessment audits and registering a corporation’s permanent establishment in the Province as conforming to ISO9000 standards;
(b) “expenditure with respect to documentation” means an expenditure made by a corporation which is directly attributable to the documentation of quality control and assurance procedures, processes and systems, at a corporation’s permanent establishment in the Province including measuring, analyzing and reporting, necessary for conforming to ISO9000 standards and, for greater certainty, does not include an expenditure made for routine maintenance or improvements to a quality control or assurance procedure, process or system;
(c) “expenditure with respect to training” means an expenditure made by a corporation which is directly attributable to the training of employees in the procedures necessary to properly measure, analyze and report on quality control and assurance procedures, processes and systems of a corporation’s permanent establishment in the Province for the purposes of conforming to ISO9000 standards;
(d) “ISO9000” means the 9000 series of standards as published by the International Organization for Standardization;
(e) “Minister” means the Minister of Finance or an officer designated by the Minister to perform any of the duties and exercise any of the powers imposed or conferred on the Minister by or pursuant to Section 13C  of the Act;
[Note: Effective October 22, 2013, the reference to the Minister of Finance should be read as a reference to the Minister of Finance and Treasury Board in accordance with Order in Council 2013-348 under the Public Service Act, R.S.N.S. 1989, c. 376.]
(f) “normal reassessment period” has the meaning given that expression by subsection (3.1) of Section 152 of the Income Tax Act (Canada);
(g) “qualified registrar” means a person accredited by the Standards Council of Canada as a person qualified to register quality systems for the purpose of conforming to ISO9000 Standards.
4 The following expenditures are directly attributable to the documentation of quality control and assurance procedures, processes and systems:
(a) the cost of materials consumed in preparing and developing such documentation;
(b) that portion of the salaries, wages and related benefits of an employee which directly undertakes, supervises and supports such documentation and that can be reasonably be considered to relate to such documentation [sic];
(c) other expenditures directly related to such documentation which would not have been incurred if such documentation had not been undertaken.
5 For the purposes of subsection 13C(2) [45(2)] of the Act, the amount of eligible expenditures made in the taxation year is the aggregate of all eligible expenditures made less any government assistance, non-government assistance or any other inducements received in respect of such expenditures, other than government assistance received pursuant [to] Section 13C  of the Act.
6 For the purposes of subsection 13C(2) [45(2)] of the Act, a corporation may make application, at any time after its taxation year end and before the end of the normal reassessment period, to the Minister for a tax credit certificate by filing with the Minister, in a form acceptable to the Minister, an application containing at least the following information:
(a) a reconciliation of all expenditures for which the corporation is making application for a credit, in sufficient detail for the Minister to determine the nature, timing and amount of the expenditure;
(b) a description of the business and the quality control or assurance system for which the corporation is seeking ISO9000 certification;
(c) if the corporation has entered into an agreement with a qualified registrar to become ISO9000 certified, the name of the qualified registrar;
(d) where the corporation has not entered into an agreement with a qualified registrar, evidence supporting the efforts made by the corporation in commencing an ISO9000 certification process, including an ISO9000 Implementation Plan.
7 For the purposes of subsection 13C(2)[(3)] [45(3)] of the Act, where the Minister is satisfied that the corporation is entitled to a tax credit certificate, the Minister shall issue a certificate in a form from time to time prescribed by the Minister.
[Note: The enabling Section of these regulations and the cross-references made throughout have been updated to reflect amendments made to the Act pursuant to Section 61 of the Financial Measures (2000) Act, S.N.S. 2000, c. 4.]