While Scientific Research and Experimental Development (SR&ED) Tax Credit claims can be filed within 18 months (amended filing) for corporations from the end of a taxation year, Braithwaite recommends aiming to complete the claim over the course of 6 months (original filing) in real-time to avoid last-minute information gathering and submission. This will allow dividing the process into a number of stages to collect and process the information in a timely manner.
Below we’ve outlined how our senior team of technical and financial experts work with you to find the maximum amount of credit while minimizing your time investment.
Stage One: Reviewing active projects and existing processes
Our first step is to make sure your team has a solid understanding of CRA’s guidelines and to ensure that we have a solid understanding of your organization and internal processes. This involves a detailed presentation to your technical and finance leads on the SR&ED Tax Credit guidelines/legislation as well as reviewing your existing processes, organizational tools, project lists and tracking systems. From this information and discussion, we review potential R&D projects to narrow the list to those that are likely to qualify as well as determine the most suitable method of gathering the necessary technical and financial information.
Stage Two: Gathering information for technical reports throughout the year
Next, we work with you to develop a plan to capture the information necessary to support your claim from a technical perspective. Our technical team will recommend the best methodologies to capture internal technical information if none is available or suggest ways to enhance the current process. Based on discussions with your technical, we obtain the information necessary to write a technical report for each project that describes the work performed and why it is eligible.
Stage Three: Project costing
Subsequently, we work with your financial leads to capture the information necessary to support your claim from a financial perspective. This involves a detailed discussion with the finance lead to develop a plan to obtain the financial information. We compile costing / financial information based on the selected R&D activities/projects in an itemized report to showcase eligible costs per project.
Stage Four: Review of information before submission and submission date
Once the information for both the technical and financial reports have been compiled they must be reviewed for accuracy. We recommend peer reviewing the technical and costing reports by another internal technical and tax consultant. Once the peer review is complete, Braithwaite will review the reports and flag any gaps if necessary to ensure the claim adheres to the latest CRA’s requirements. The submission of the SR&ED tax credit figure is then completed by you or your tax agents.
Stage Five: CRA screening / possible CRA audits
With CRA audits on increase, it is very important that companies allow sufficient time for their SR&ED consultants to analyze and process the information in order to ensure that the projects are in line with the CRA’s latest guidelines. Claims can be screened by the CRA at the first instance, enquiring for the technical and costing reports. Braithwaite is responsible to provide CRA with the reports. Some claims may be audited further and an onsite visit from CRA’s inspectors are expected. Braithwaite provides support throughout the audits and will help our clients defend their claim.
Braithwaite Technology Consultants Ltd. can assist you in obtaining tax credits for scientific research and experimental development activities. Whether your work involves basic research, applied research, or experimental development, Braithwaite can take the uncertainty out of the filing process and get you the credit you deserve for your innovation.
Planning your next SR&ED Tax Credit Claim? Please contact the professionals at Braithwaite.