Financial Awareness When Claiming An SR&ED Tax Credit
By admin
Published On March 17, 2021
The SR&ED Tax Credit is a complex program outlined by Canada Revenue Agency (CRA) to encourage growth and prosperity for Canadian trading companies across Canada. There is a strong emphasis on meeting scientific or technological advancements but that is only half of the claim. Having an understanding or awareness of the financial aspect of the SR&ED Tax Credit Claim will help companies maximize their claim each and every year. Below is a breakdown of having financial awareness with your companies SR&ED Tax Credit Claim.
SR&ED Financial Eligibility Examples
- Salaries & wages
- Subcontractor invoices
- Overhead costs
- Consumed and/or transformed materials
- Third party payments
Non-SR&ED Financial Eligibility
- Employee salaries outside of Canada
- Subcontractor salaries outside of Canada
- T4 salaries non-SR&ED related
- Vacation and/or sick leave
- Government funding (IRAP)
Now that the financial eligibility for an SR&ED Tax Credit Claim has been outlined, how does a company go about filing a successful claim? We take a look at important steps to follow when claiming the SR&ED Tax Credit.
Filing A Successful SR&ED Claim:
- Making sure all supporting evidence is accounted for
- Determining proxy method or traditional method
- Determining what type of qualifying corporation your company is (CCPC or Non-CCPC)
- Understanding Federal & Provincial SR&ED Tax Credits
- Being tax compliant to maximize your companies cash return
- Meeting filing deadlines (original vs. amended filing)
- Capability to file electronically
- Having proper CRA authorization for updates
How Can Braithwaite Canada Assist
Braithwaite Canada takes a 7 step approach to maximize every R&D Tax Credit Claim filed to CRA (Detailed description of the 7 step approach).
- Initial Exploratory Meeting
- Offer of Service & Presentation of Offer
- Kickoff Meeting & Preliminary Project Identification Stage
- Science Data Compilation Phase
- Financial Data Compilation Phase
- Project Review & Finalization
- SR&ED Claim Submission to CRA
For further information on how Braithwaite Canada can assist your company in successfully preparing an SR&ED Tax Credit claim to CRA, please contact us today.
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