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Blog
July 22, 2022
The Scientific Research and Experimental Development (SR&ED) Tax Incentives are complex and require in-depth knowledge of the SR&ED tax system. To meet Canadian Revenue Agencies (CRA) guidelines, a company must understand all forms needed for submission, SR&ED eligibility (the proper documentation), how to submit correctly, etc. This can be cumbersome for many companies, as finding the quick and easiest way to file is always top of mind.
With the emergence of software and AI platforms, many companies are asking can these platforms submit an SR&ED Tax Credit on my company’s behalf. ABGi takes a look at how the human touch is still and will continue to be the preferred method of filing an SR&ED claim to maximize your time and claim size.
Financial complexities are unique to each business and when it comes to filing with the CRA, companies want assurances that they are filing to the letter of the law. From our experience, the low, up-front price of software/AI platforms comes with a loss in claim figures and quality of technical reporting.
The most important part of filing an SR&ED claim is having the correct understanding of eligibility, the HOW & WHY of SR&ED. A company can upload thousands of documents to a platform but the understanding of what does and does not qualify, not only service level eligibility is what separates ABGi from AI platforms. Our in-house taxation team for over 30+ years understands and evaluates the tax law at the Federal and Provincial levels to make sure all credits are correctly accounted for.
If your company has filed previously, you are at an advantage of understanding the necessary requirements. However, if you have never filed before or have undertaken new SR&ED projects it is not so easy. Meeting clients virtually or face-to-face allows us to better understand your nature of work, provide assurance and guidance that lead to a long-term better understanding of the R&D Tax Credit initiative and peace of mind when filing.
Each software/AI portal will differ from company to company, but essentially you upload project information on your own time to be reviewed online by their experts at each stage. Without steer or guidance from a consultant, this may end up establishing topline eligibility only, taking longer and eating into valuable employee time. The main advantage of consultants is to maximize your claim and take that administrative burden away from the team and let them get on with their everyday job.
While AI advisors are growing in popularity and are heavily advertised, they are not close to replacing consultant firms. Our Ph.D., Engineers, and/or developers in your field of science and technology will extract measured strategies of your work relative to the program’s eligibility and ultimately increase the size of your claim.
However, Digital Platforms may be useful for small companies due to their low cost but they lack the full range of benefits that would let them serve as true replacements for a traditional, human touch. Particularly regarding presenting the information in a format that addresses the scientific and technological advancements of the projects which is sometimes the most overlooked section of the claim.
Cheaper is not always better. Automated systems are not as great at helping companies extract relevant financials and capturing opportunities for improvement.
At ABGi, we have seen the value our clients get from engaging with us. We offer all companies interested in the SR&ED Tax Credit a FREE Initial Consultation to identify less obvious activities and assess their eligibility for the Credit/Refund where we apply stringent and ethical assessments to ensure your claim is audit ready at submission.
If your finance team could benefit from a personal touch for SR&ED Tax Credits, please contact us today for a No Obligation Complimentary Assessment …… by emailing contact@abgi-canada.com
