As we venture on into the year 2021, Canada Revenue Agency (CRA) has invested more time this year into evaluating SR&ED claims. In 2020 CRA was more lenient by extending filing deadlines, canceling audits and reviews, and processing claims quicker so companies dealing with the effects of COVID-19 could receive cash flow. Quicker processing times are still in place to assist companies but evaluating the SR&ED claim submitted to CRA is being more scrutinized. Usually, we will see this with first-time filers but CRA is also looking at previous SR&ED filers as well. Previous filers or long-standing SR&ED filers are subject to a Claim Advisory Service (CAS) Review.
What companies are affected?
A CAS review is for companies that have not claimed an SR&ED Tax Credit in a minimum of three years. Companies also affected are long-standing SR&ED filers that CRA has not spoken to in 3-5 years. In both instances, a CCPC and a non-CCPC can be selected, CRA does not favour one over the other.
What type of review is CRA conducting?
Similar to a first-time claimant advisory service (FTCAS), the review will be conducted by both a technical reviewer and a financial reviewer. An education portion will take place along with questions about the SR&ED claim submitted. Once the meeting is over, important notes if any on how to improve the claim will be provided to the company.
When does my company expect to be refunded by CRA?
A refund on your approved SR&ED claim will be sent in four to six weeks after the CAS review.
Included in all of our standard contingency contracts is assistance on all SR&ED reviews (SR&ED reviews list). Braithwaite will guide each and every company through the CAS process. Once selected by CRA for a CAS review, Braithwaite will evaluate what information CRA is requiring for further explanation. Our team will make sure that all of our clients will be prepped beforehand by answering each of CRA’s questions. This process will make the CAS a smooth and easy review.
For further information on how Braithwaite Canada can assist you with the CAS review, please contact us today at 1-416-499-2861.
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