Just wondering! How many members of Silicon Halton claim SR&ED tax credits? Or, are aware of the SR&ED program, or know what SR&ED is or who is CRA?
For those not aware, SR&ED stands for Scientific Research and Experimental Development – it is an incentive program administered by the Canada Revenue Agency (CRA) since the mid-1980 for Canadian companies who perform research and development within Canada. It is designed to encourage the development and advancement of Canadian technologies. The program offers tax incentives in the form of refundable and non-refundable tax credits ranging from 20% to 35% on qualified expenditures. The SR&ED program provides nearly $3 billion in credits to over 24,000 claimants each year. And, yet an estimated $3 billion goes unclaimed! This is because many of the small and medium sized companies are not aware of the program, or do not think that their activities qualify for R&D funding, or just do not know how to go about it. The refund is available regardless of whether you have paid any taxes.
What Is Your Fair share Of These Tax Credits?
Needless to say, particularly in unsettled times of today, every business needs to explore all potential sources of revenue – particularly credits that go directly to the bottom line.
Are You Claiming SR&ED Tax Credits?
Canadian information technology firms are major beneficiaries of SR&ED benefits. Their claims represent 40 percent of the total claims. The government of Canada recognizes this and wants to reward you and other Canadian organizations that are constantly striving to develop new products and improve their processes.
Two components of the claim submission are: technical and financial. The technological assertion is more critical and challenging to deal with than the financial assertion. The key to success in this program is to have engineers and scientists do the technical write-ups. The documentation process is complex, but correctly documented efforts provide a critical source of funding for many.
For more information, go to www.cra-arc.gc.ca/txcrdt/sred-rsde/bts-eng.html or contact Raj Phalpher at rphalpher@resultel.com
Raj Phalpher, P.Eng, CMC, is the Chief Results Officer of Resultel Technologies Inc. Raj’s focus is exclusively on SR&ED tax credits since 2002. Previously he provided training, counseling, and support to some of the world’s largest and most prestigious organizations in both the public and private sectors. Raj founded and chaired Emeritus of Toronto SPIN (Software Process Improvement Network) and is the Past-President of CIPS Toronto Chapter [2005]. Raj currently serves on several boards: GTA Chapter Board of the Canadian Association of Management Consultants [CAMC], Rotary Club of Oakville Trafalgar, Oakville Senior Citizens Residence and Shared Services International in addition to owning the Networking track of Silicon Halton monthly meetups. [Email] [LinkedIn] [Web]