5 CRA Questions Regarding Technical Documentation

By Dmitry Brusilovsky, CEO, SRED Unlimited Recently, the CRA yet again changed their SR&ED procedures. Fortunately, the eligibility criteria remains intact: there’s no difference in what qualifies as SR&ED. However, what they’ve done is clarified how they evaluate claims. Hopefully, this will make for a less confusing process from a claimant perspective. They’re most likely further emphasizing/renewing their focus on technical documentation.…

Details

Prospecting, Mining, and Diamond-Cutting

In the evolution of a highly successful and process-driven SR&ED program, there are three stages:  prospecting, mining, and diamond-cutting.  I define these stages as follows:  Prospecting Characterized by investigation and detection, i.e., go out and find it, bring it back, cash in (write up claim, submit, defend), repeat next year.  Mining  Characterized by organized processes…

Details

Ontario 2016 Budget Reduces SR&ED Rewards

On February 25, the governing provincial Liberals announced the annual Ontario budget. With this budget comes a rate adjustment that will impact everybody who claims SR&ED tax credits, particularly for claims based in taxation years ending on or after June 1. Here are some of the highlights: 2% reduction in the Ontario Innovation Tax Credit…

Details

Industry News and Events

Industry Events: Canadian Innovation Exchange: Cleantech Game Changers (October 15, 2015, Toronto, ON) The Canadian Manufacturing and Technology Show (September 28-October 1, Mississauga, ON) North America Mining Expo (August 19-20, Sudbury, ON) Manufacturing Summit (June 23, Kitchener-Waterloo, ON) Design & Manufacturing Canada (June 16-18, Toronto, ON) Automotive Parts Manufacturers’ Association Annual Conference & Exhibition (June 3-4,…

Details

Does SR&ED Really Boost Canadian Innovation?

We all tend to perceive an “innovation gap” between Canada and leading-edge tech countries, even after years of the SR&ED program which is intended to nurture Canada’s innovative growth. That might lead some to ask the question, does SR&ED really boost Canadian innovation? Where is the money going, and could it be better directed? A…

Details

5 Points from the recent Tax Court of Canada ruling

In recent years, the CRA has come down ever harder on SR&ED claimants, appearing to tighten their internal definition of what’s claimable without making it crystal clear what would definitely qualify for SR&ED refunds. It is increasingly rare for an audited claim to end up accepted as filed. Interestingly, a Montreal-based manufacturing company facing similar…

Details

New Year’s Tip: Acceptance vs Eligibility

It’s a new year and it helps to go into it with a clear head. If you can get past one common point of confusion, then your 2015 could turn out that much brighter. Common misconception: Accepted as filed = SR&ED-eligible work   Since the process of claiming SR&ED appears labyrinthine and frustrating to the…

Details

Bad Form

Some tax offices and Research and Technology Advisors (RTAs) of the Canada Revenue Agency (CRA) in the Greater Toronto Area are demanding that SR&ED Claimants fill out a non-prescribed (read, unauthorized and unofficial) form called a “Development Chronology” as a condition of their SR&ED review. “Fill it out,” the Claimants have effectively been told, “or…

Details