Planning & Preparing for an SR&ED First-Time Claimant Advisory Service (FTCAS)

May 11, 2021

The SR&ED first-time claimant advisory service (FTCAS) was introduced by Canada Revenue Agency (CRA) in 2014. This is a free discussion to all first-time claimants on the SR&ED program that must be attended by all first-time filers. The discussion/meeting will assist all applicants in preparing future SR&ED claims regardless of using a consultant or filing in-house. Since this advisory service is fairly new, we have experienced many companies asking us questions about the FTCAS program. Below we have illustrated questions and concerns that many companies face with the FTCAS as well as how to be prepared when the CRA is asking for additional SR&ED documentation.

What is the FTCAS process?

• Due to the current climate of COVID-19, CRA may contact a company for review by either telephone or email (the traditional method was by mail or notification on your CRA portal).
• Once contacted by CRA, the client is initially approved for their SR&ED claim, however, an FTCAS is required as CRA wants to outline the SR&ED Tax Credit program and ask questions related to either technical projects or costing analysis. This will be outlined in the document you receive by CRA prior to the FTCAS date, so the company and ABGi Canada can prepare. At this time ABGi Canada will assist the company with an outline of answers to the documentation received by the CRA for presentation on the day of at no additional cost.

How long is the FTCAS?

• Pre COVID-19, an FTCAS was an in-person at your company’s location review that would take anywhere from a half-day to a full day. Due to COVID-19, the current process is either a telephone or teleconference review that can take anywhere from 2 hours to half a day.

Who conducts the FTCAS?

• The FTCAS is conducted by 2 reviewers, a Technical RTA, and a Financial RTA. The Technical RTA will review your companies SR&ED projects as well as provide any recommendations for future claims. The Financial RTA will review all costing information associated with the SR&ED projects. The Financial reviewer wants to make sure companies are not double-dipping with other grant applications or subsidies, especially CEWS.

Can my consulting firm attend the FTCAS?

• ABGi Canada can be in attendance for the FTCAS, either in person, by phone, or teleconference. However, the consultant is not permitted to speak on behalf of the company. Unfortunately, CRA only wants to hear directly from the client on their SR&ED projects to ensure that the company has a clear understanding of the SR&ED process.

When will my company receive the SR&ED funds?

• After the FTCAS has taken place, it usually takes CRA anywhere from 4-6 weeks to process the claim providing recommendations on future SR&ED claims, if necessary. The cash or credit return will be awarded to the client within that timeframe.

For further information on the FTCAS or assistance on your companies upcoming FTCAS, please contact ABGi Canada