The Landscape

Innovation is the driving force behind the new economy. By recognizing this competitive reality, our federal government has launched several programs and services devoted to encouraging continued R&D activities.The SR&ED (Scientific Research and Experimental Development) Tax Credit Program is one of the best programs offered, and contrary to popular belief, you don’t need to have a PhD or a state-of-the-art lab to be involved in R&D. Many Canadian businesses integrate R&D within daily business activities and don’t realize that they may be eligible for SR&ED tax credits.

Learn more:

What is the SR&ED?
Can I apply on my own?
What R&D activities are eligible?
What does it cost to file a claim?
How long does the process take?
How do I start the process?

What is the SR&ED?

“Generally, a Canadian-controlled private corporation (CCPC) can earn an investment tax credit (ITC) of 35 percent up to the first $2 million of qualified expenditures for SR&ED carried out in Canada, and 20 percent on any excess amount. Other Canadian corporations, proprietorships, partnerships, and trusts can earn an ITC of 20 percent of qualified expenditures for SR&ED carried out in Canada” (Source: Canada Revenue Agency)

The SR&ED is a refundable tax credit, which means that even if your business makes no profit, you will get the appropriate refund back in cash. Besides the eligibility for these investment tax credits, R&D tax incentives provide a full tax deduction in the year the expenditures are incurred, even if they are capital in nature. You can also carry over R&D deductions to the extent that they are not needed in the current tax year.

Back to Top

Can I apply on my own?

You can but we don’t advise it. Only a SR&ED specialist has the knowledge, experience and time to follow CRA's legislative changes and SR&ED's internal policies, and to know how they affect you. SR&ED calculations and the submission process is complex. Knowing what information to include and how to justify it requires specialized knowledge. HMT consultants help determine your eligibility, save you time and ensure that your claim is maximized.

Back to Top

What R&D activities are eligible?

• experimental development to achieve technological advancement to create new materials, devices, products, or processes, or improve existing ones
• applied research to advance scientific knowledge with a specific practical application in view
• basic research to advance scientific knowledge without a specific practical application in view
• support work in engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, or psychological research, but only if the work is commensurate with, and directly supports, the eligible experimental development, or applied or basic research
  

Back to Top

What does it cost to file a claim?

Our compensation is based on our performance. If we determine your work to be eligible we will prepare and submit your claim. Only when your claim is successful and you have received your cash refund or tax credit from the government does HMT get paid. There is no fee for an unsuccessful claim.

Back to Top

How long does the process take?

The SR&ED claim deadline is 18 months from the end of your fiscal year. The best time to make a claim is with your regular tax return. This will get you the quickest results in as little as 3 months.

Back to Top

How do I start the process?

Most companies are mystified by paperwork, process and technical requirements that Canada Revenue Agency (CRA) uses to determine eligibility. Let HMT determine your eligibility, complete the paperwork and manage the whole process.

Call us today. You have nothing to lose.
HMT Sales Tax Consultants Inc.
911 Golf Links Road, Suite 211
ANCASTER, ON
L9K 1H9

Back to Top