 |
What is SR&ED?
“Generally, a Canadian-controlled private corporation (CCPC) can earn an investment tax credit (ITC) of 35% up to the first $2 million of qualified expenditures for Scientific Research & Experimental Development (SR&ED) carried out in Canada, and 20% on any excess amount. Other Canadian corporations, proprietorships, partnerships and trusts can earn an ITC of 20% 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.
Can I apply on my own?
You can, but we don’t advise it. Only a SR&ED specialist has the knowledge, expertise 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 Specialists help determine your eligibility, save you time and ensure that your claim is maximized.
What R&D activities are eligible?
The following activities may be 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
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.
How much of my time and my staff’s time will I have to invest?
As little as possible, but it is a partnership. HMT will require involvement from key personnel initially to identify eligible programs, but will design useful tracking systems for your staff. In addition, we will provide on-site training to your staff, and there are NO ADDITIONAL FEES for this training.
HMT Specialists will make multiple visits to your business to collect data, refine tracking systems, answer questions and provide ongoing support. There are NO ADDITIONAL FEES for these on-site visits. We will visit as many times as required, and we are not capped on hours per client, program or claim.
What happens if my claim is audited by the CRA?
Upon submission of claim, the CRA may approve it as filed; conduct a desk audit, or conduct an on-site audit at your business. HMT is committed to the quality of our work, and will provide full pre-audit support as well as attendance throughout any claim reviews. This is an integral part of our service to our clients, and there are NO ADDITIONAL FEES for this support.
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.
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.
1.888.648.1224
|
 |
