Scientific Research & Experimental Development (SR&ED)
is one of the most attractive incentives in the world!
Canadian Controlled Private Corporations receive Government of Canada cheques equal to:
⅔ of qualifying salaries +
⅓ of payments to contractors +
1/5 of material costs
The Canada Revenue Agency pays $5 billion to 20,000 technology-based companies every year.
Who can receive SR&ED cheques (or direct deposits to your bank)?
Canadian Controlled Private Corporations
In Ontario they recover 65.554% of qualifying salaries; 64.325% in other provinces like BC and Alberta.
They also recover 33.2% of their contractor fees and 41.5% of costs of materials used in prototypes.
The CRA's publications don't reveal how good SR&ED really is! They reference 35% of qualifying salaries, but don't acknowledge most provinces contribute 10% more! Add 55% to salaries as a proxy for overhead. Their sum is 64.325% of salaries! You won't find these percentages anywhere else!
When is your deadline to apply?
The CRA must receive your SR&ED claim within 18 months after the end of each fiscal period.
When will your SR&ED cheque arrive?
A few months after your accountant E-Files your T2 corporate income tax return, assuming the CRA won't audit your SR&ED claim. If I'm involved the CRA's screeners will receive all the information they'll need to approve your SR&ED claim quickly. Otherwise plan on waiting six months.
What is SR&ED?
You must discover something new, technically to qualify for SR&ED. And learn CRA’s jargon:
"Technological Uncertainties” are problems that can’t be solved by applying existing knowledge. “Technological Advancements” are their solutions, the new knowledge you generate.
Your answers to these 5 questions must be "yes"
Q1: Was there a scientific or a technological uncertainty?
What problems did you encounter that couldn't be solved by applying knowledge generally-available in your field?
Q2: Did the effort involve formulating hypotheses specifically aimed at reducing
or eliminating that uncertainty?
How did you decide to resolve your problems?
Was the overall approach adopted consistent with a systematic investigation,
including formulating and testing the hypotheses by means of experiment or analysis?
We'll describe your systematic investigation.
Q4: Was the overall approach undertaken for the purpose of achieving a scientific or
What have you learned that you didn't initially understand?
As a result of your experiments, what do you know that your competitors don't?
Q5: Was a record of the hypotheses tested and the results kept as the work progressed?
The CRA expects timesheets showing hours your personnel worked and their activities.
Why should you hire a SR&ED consultant?
You may be mystified by the CRA's academic requirements. I understand what the CRA needs to see in order to approve your SR&ED claim quickly. Rely on my experience.
My mission is to help you benefit from SR&ED.
What'll happen if the CRA audits your SR&ED claim?
You'll wait 6-8 months for your SR&ED cheque to arrive!
“Our SR&ED claim have been successful since 2001, every year, ...
only one cursory financial audit was a breeze and no technical audits!
Imagine increasing your revenue by 20% with little effort of your own. ”
Peter van Diepen, Naviform Consulting Research