Scientific Research and Experimental Development (SR&ED) can seem daunting to the uninitiated. Many business owners wrongly assume that the technical work they perform on a regular basis does not qualify for this tax incentive program. However, SR&ED serves to encourage businesses of all sizes and sectors to pursue technological advancements, and its eligibility criteria may be more inclusive than many expect. Consider the following when identifying potential SR&ED work in any field of technology:
Did you encounter technological uncertainties?
When a business comes across a technological problem, an SR&ED project can potentially begin. Continued efforts to overcome this problem are essentially eligible SR&ED activities.
What is a technological uncertainty?
A technological uncertainty is defined as an issue that proves challenging to overcome due to technological constraints and limitations. It is critical to note that a technological uncertainty is not established based on a lack of proper training on the technology. In addition, a technological uncertainty cannot be easily resolvable through publicly available means; this includes complete solutions proposed by OEMs, contractors, etc. On the other hand, the pursuit of technological knowledge that currently exists but is not publicly accessible can be claimable through SR&ED.
What are some common identifiers of technological uncertainties?
What do taxpayers need to prepare for an SR&ED claim?
For first-time claimants, typically only existing documentation in support of the expenses to be claimed are needed for an SR&ED submission for their initial claim. For subsequent claims, Canada Revenue Agency will expect to see detailed information in the supporting documentation.
Braithwaite Canada can help
Whether a company is new to SR&ED or is experienced with filing claims, Braithwaite Canada can offer invaluable assistance. Braithwaite Canada employs dedicated SR&ED experts who are highly knowledgeable in both technology and finance and can assist claimants through every step of the submission process.
A properly trained tax consultant can help a potential claimant identify eligible areas of SR&ED work and exclude ineligible ones. They can further reduce the burden of preparing a potential claim by providing insightful guidance on what kinds of information are relevant. Braithwaite Canada’s consultants are also available to assist in the documentation generation and organization process during active fiscal periods to ensure that all necessary evidence can be made available for CRA’s review. More importantly, the team at Braithwaite Canada is highly experienced in preparing descriptive narratives of the eligible work performed, which greatly increases the chances of approval without a review audit.
For more information on technological uncertainties in relation to the SR&ED Tax Credit or how Braithwaite Canada can assist you with your companies next SR&ED Tax Credit Claim, please contact us today.
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