523. Assessment of patent income; relief for expenses.

Patent income is, in general, charged to income tax by deduction1, but, where paid in full, may be assessed on the recipient2.

A person may claim relief where: (1) being an individual who, alone or jointly, devised an invention for which a patent has been granted, he has incurred expenses which are attributable to devising it ('inventor's expenses'); or (2) he incurs, other than for the purposes of any trade carried on by him, any expenses in connection with the grant or maintenance of a patent, the extension of a term of a patent, or a rejected or abandoned application