Each industry faces its own challenges when filing an SR&ED Tax Credit Claim. There may be some activities that are easier to identify when claiming and others may be in a “grey area”. The examples below help illustrate a better understanding of the “grey area” to maximize your claim.
Have any of your products or processes taken more time to develop than you expected?
Did you have any failures in product or process development or improvement?
Have you used or combined technologies in new ways?
Have you developed prototypes?
If you were to develop subsequent models or designs, would they have new and different characteristics requiring multiple attempts?
Maintaining NRC IRAP (National Research Council Industrial Research Assistance Program) funding can be a challenge for businesses, especially for small and medium-sized enterprises (SMEs) in Canada. Here’s a breakdown of some key struggles:
The two most lucrative incentives for companies incorporated in Canada to take advantage of are The National Research Council of Canada Industrial Research Program (NRC IRAP) and the Scientific Research and Experimental Development tax credit (SR&ED). Many companies are familiar with one over the other however are not aware that they can claim both incentives to maximize their research and innovation. Below is a brief comparison between the two programs as well as an example of how a company can claim both IRAP and SR&ED.
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.
A CCPC is a Canadian-controlled private corporation with ownership in Canada. The CCPC is not registered on the stock exchange nor does it have ownership in a foreign country. With relation to the SR&ED Tax Credit, a CCPC will maintain its status as long as the taxable capital is less than $50 million.
A Non-CCPC can be a public company incorporated in Canada, owning shares on the stock exchange, having foreign ownership, or having a taxable capital larger than $50 million.
Maintaining NRC IRAP (National Research Council Industrial Research Assistance Program) funding can be a challenge for businesses, especially for small and medium-sized enterprises (SMEs) in Canada. Here’s a breakdown of some key struggles:
From start-ups to SMEs to large corporations, we often find companies asking us, “when should we claim our SR&ED projects for the year” and “what activities qualify”? Usually, companies new to the SR&ED program tend to look at the commercialization of a project.
Navigating SR&ED Tax Credit deadlines and reviews can be complex, but with proper planning, you can simplify the process. In this quick guide, we’ll explore SR&ED filing deadlines, outline ABGi Canada’s streamlined five-stage process for filing claims, and offer insights into CRA reviews.
As of January 1st, 2021, new changes to contact The Canadian Revenue Agency (CRA) over the phone will take into effect. CRA is tasked with protecting the information of businesses and individuals and in doing so will require additional information from a person contacting them about financial information.
In our first article published in March on the Medical Cannabis Industry titled SR&ED Eligibility Criteria and Possible Projects in the Medical Cannabis Industry, we continue on educating entrepreneurs and companies within the industry to take advantage of the SR&ED program.
