former CRA Auditor
SR&ED claims approved
26 years SR&ED experience
SR&ED is among the most attractive incentives in the world!
Canadian companies receive Government of Canada cheques equal to:
⅔ of qualifying salaries, plus
⅓ of payments to contractors, plus
2/5 of the costs of materials used for prototypes
Who can receive these SR&ED cheques?
Canadian Controlled Private Corporations. At least 50% of your company's shares must be owned by residents of Canada.
It'll recover two-thirds of salaries spent on research in most provinces; 63,21% in Ontario; 64,325% in BC; 54.25% in Alberta. And 33.2% of contractor fees + 41.5% of costs of materials consumed.
The CRA is not good at explaining how sweet SR&ED really is! The federal rate is 35% of salaries, but we'll add 55% for overhead. Most provinces contribute 10% more! BC companies receive (35%*90%+10%)*155% = 64.325% of salaries! The calculations and forms required in each province is different and complicated, especially in Ontario, and Alberta.
When will your SR&ED cheques arrive?
After your accountant prepares your T2 income tax return containing the technical and financial information you and I need to prepare. We can do this in less than one month.
We have deadline:
CRA must receive your SR&ED claim within 18 months after the end of each fiscal period.
How to you qualify?
You must discover something new technically, and understand CRA’s jargon:
"Technological Uncertainties” are problems you can’t solve by applying existing knowledge; “Technological Advancements” are solutions, the new knowledge you discover.
Planning, design, data collection and testing.
Testing and analysis
to verify your hypotheses.
Progress reports, data from trials. Who did what, when?
Recover 33.2% of your payments to contractors in your province (28% if located elsewhere in Canada.
You'll recover 41.5% of costs of materials "consumed".
75% of your CEO's salary
Most, but not necessarily all, of your activities must be performed in Canada to qualify for SR&ED.
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.
I can help you understand the CRA's arcane perspective.
What'll happen if the CRA decides to audit your SR&ED claim?
You may wait 6-8 months for your SR&ED cheque to arrive!
First, your local Tax Centre will screen your SR&ED claim.
Together we will explain to the CRA why your activities qualify. I know hat they need to understand. Together we'll provide clear concise reasons why your activities qualify, so you receive your SR&ED cheques quickly.
The CRA will mail a letter asking for supporting documentation.
You and l will have prepared this, ready to upload it to the CRA's Business Account portal.
Two auditors will be assigned, and visit you 2 months later.
A Research & Technology Advisor will ask in-depth questions about your technology, and what you did. A Financial Reviewer will inspect your General Ledger to verify payments.
You'll wait 2 months waiting for the CRA to mail you another letter.
The CRA's auditors will time to make a decision, and explain reasons for adjustments they may propose. We can appeal within 30 days.
The CRA will mail your SR&ED cheque 2 months later.
After their manager signs off, your file will go to another department to check if you owe taxes, GST or payroll remittances. Only then will the CRA will mail your SR&ED cheque (or make a direct deposit).
Rely on experience to avoid an audit.
Why should you hire a SR&ED consultant?
Perhaps you're mystified by the CRA's academic requirements. Figuring out what the CRA requires is tedious. Better to get help and receive your SR&ED cheque quickly.
Don't waste your time
I'll simplify the complicated rules.
Get your money faster!
Use my templates
They're in plain English
Include all your expenses
Lots of companies miss some!
Be prepared for an audit
Then you can relax.
Your SR&ED claim will more likely be approved by the CRA.
I'll help get your SR&ED claim approved by the CRA
“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