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 costs when combined with provincial ITCs.
What is the deadline to make a claim?
The reporting deadline for corporations is 18 months from the tax year end in which the costs were incurred. If this deadline is missed, the money is lost. For example, a fiscal year end of Nov 30th 2009 has until May 31st 2011 to file their 2009 SR&ED claim. Often 2 years of past activity can be claimed at once.Contact us now to avoid missed deadlines.
How long does it take to get my refund?
The CRA’s service time to process a SR&ED refund is four (4) months for those companies filing within 6 months of their year end and eight (8) months for claims filed between 6 and 18 months of their year end.
My company does not perform any formal science or R&D studies; do we qualify for SR&ED?
Many of our clients are small to medium businesses, from nearly every industry sector, that perform experimental development. They follow a systematic approach to improving products and processes, and attempt to overcome the technological obstacles associated with that goal. Clearly demonstrating and documenting this process is the key to making a successful SR&ED claim.
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. Most companies receive a refund cheque even when no taxes are due.
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 revenues, costs or responsibilities be eligible for SR&ED?
Having a complicated corporate structure simply means you need an 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, we are sponsored by sources such as universities, pharmaceutical companies, government grants/subsidies and the like. Are we 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 the 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 claiming SR&ED refunds 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.
