
FAQ
- How much is paid? The value of your claim is based on all reasonable costs related to technological developments: labour, materials, overheads and capital equipment. The federal government will issue refunds or Investment Tax Credits (ITCs) up to 82% on labour when combined with provincial ITCs.
- Is there a deadline to make a claim? The reporting deadline for corporations is 18 months from tax year end in which the costs were incurred. If this deadline is missed, the money is lost. For example, a year-end of Nov 30th 2008, has until May 31st 2010 to file their 2008 SR&ED claim. Fastest results are achieved by filing within 6 months of a fiscal year-end. Contact us now to avoid missed deadlines.
- How long does it take to get my refund? CRA’s service time to process a SR&ED claim is four (4) months for those companies filing their T2s and SR&ED claims within 6 months of their year end and eight (8) months for those companies filing their T2s and SR&ED claims after 6 months of their year end.
- My company does not perform any formal science or R&D studies; do we qualify for SR&ED? Most SR&ED claimants are small to medium businesses from nearly every industry sector that perform experimental development. That is, they utilize a systematic approach to achieving some technological advance/goal and attempt to overcome the technological obstacles associated with that goal.
- Can a company that is not profitable and does not pay taxes, qualify for a SR&ED refund? Profitability has nothing to do with a company’s SR&ED eligibility. Claims are based solely on the costs associated with undertaking research and development.
- Our Project is not complete or it failed to achieve our desired technological advance, do we qualify for SR&ED? Failures are a normal part of R&D. SR&ED eligibility rests on a company’s ability to prove their attempts to achieve a technological advance/goal and does not depend on the success of the project. Costs associated with these attempts are what is relevant and are claimed by the tax-year end regardless of project completion.
- Can a corporate structure that involves pooled costs and responsibilities be eligible for SR&ED? Having a complicated corporate structure simply means you need a SR&ED expert. Upon review, we are often able to isolate the eligible R&D investment and thus, accurately cost your SR&ED projects for CRA purposes.
- My company and I do R & D. However, our efforts are paid from various sources such as universities, pharmaceutical companies, government grants/subsidies and the like. Is my company SR&ED eligible if these other parties are involved? Having external parties pay for R&D does not necessarily exempt a company from being SR&ED eligible. Being clear about financial structures uncovers opportunities and avoids “double-dip” issues.
- Will our company’s R&D and/or trade secrets be leaked if we share them with a SR&ED consultant or make an SR&ED claim? Confidentiality is strictly enforced at both Goulet Associates and CRA. It is not necessary for you to divulge trade secrets in order to obtain SR&ED funds.
- Will filing a SR&ED claim open our company up to a CRA tax audit? Getting a SR&ED claim occasionally requires a SR&ED review. These cover only those financial activities that support your SR&ED claim – nothing more.
- Is preparing a SR&ED claim a highly complicated process that can only be completed by individuals with advanced scientific degrees? For most companies, the secret to filing a SR&ED claim is specialized SR&ED experience and knowledge combined with sound scientific and accounting principles in a team approach. Goulet Associates has perfected a process to demystify and expedite the filing. Our clients learn from our experience and may ultimately become independent of us.
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