The SR&ED Tax Credit outlined by Canada Revenue Agency (CRA) can be a daunting task to understand and interpret into a successful cash or credit refund for your company. There are different percentages for the size of your company 35% or 15% and many factors and criteria that must be met by all companies to qualify. One of the most common questions we receive is technical eligibility. Many companies have the stereotype of “men in white coats”. This can be further from the truth as many industry sectors qualify for the SR&ED Tax Credit. To get started we will evaluate the 5 question test to determine technological eligibility as well as provide industry examples.
A common oversight by many companies is disregarding project failures. When it comes to technological uncertainty, CRA is looking specifically for failures as it shows CRA that your project was not taken from an open-source network or is standard routine work. With a technological failure, CRA can identify your project, that was in theory supposed to go from point A to point B had many roadblocks along the way causing numerous trial and error. DO NOT BE AFRAID OF PROJECT FAILURES.
Please note that the above outlined SR&ED eligible activities are but a few examples CRA would deem a technological advancement. Further discussion with one of Braithwaite’s top PhDs, engineers, or developers would be needed for further qualifications.
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).
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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