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.
A former CRA auditor can help
get your SR&ED claims approved!
Who is eligible to receive SR&ED cheques?
Canadian Controlled Private Corporations receive this cash:
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... instead publish 35% as the rate applicable to salaries. This doesn't acknowledge provinces contributions of 10% more! Add 55% to salaries as a proxy for overhead, and you receive 64.325% of salaries that qualify in BC! You won't find these percentages anywhere else!
What's our deadline?
The CRA must receive your SR&ED claims within 18 months after the end of each fiscal period.
When will your SR&ED cheques arrive?
Within a few months after your accountant E-Files your T2 corporate income tax return, assuming the CRA won't audit your SR&ED claim. With my help CRA's screeners will receive everything they'll need to approve your SR&ED claim quickly. Your SR&ED cheques may arrive in 6 months if the CRA audits your SR&ED claim.
What activities qualify for SR&ED?
You must discover something new technically to qualify for SR&ED, and understand CRA’s jargon:
"Technological Uncertainties” are problems that can’t be solved by applying existing knowledge; “Technological Advancements” are solutions, the new knowledge you generated to solve them.
Planning, design, data collection and testing.
to test your hypotheses.
Progress reports, data from trials. Who did what, when?
You'll recover 33.2% of fees paid to contractors for work performed in your province (or @28% if out-of-province).
You'll recover 41.5% of costs of physical materials "consumed" (ie. used <90%).
Ee'll include up to 75% of your CEO's salary if "hands-on".
Your SR&ED activities must be performed in Canada.
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.
Understand the CRA's viewpoint.
Why should you hire a SR&ED consultant?
You may be mystified by the CRA's academic requirements. Learn what the CRA needs to see in order to approve your SR&ED claim quickly. Rely on my experience.
Save your time
Preparing documentation will be much faster if I guide you.
Include all your eligible costs
Lots of companies miss some!
Use my proven templates
The CRA has approved them.
Know your SR&ED claim will likely to be approved by the CRA.
Ensure that your SR&ED financial data are correct.
Avoid an audit
Prepare the paperwork properly, so you can relax.
My mission is to help you benefit from SR&ED.
What'll happen if the CRA decides to audit your SR&ED claim?
You'll have to wait 6-8 months for your SR&ED cheque to arrive!
First, your local SR&ED unit 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).
Avoid an audit by relying on experience.
“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