What is an SR&ED Virtual Service Visit?

Since the end of June 2021, The Government of Canada / Canada Revenue Agency (CRA) has introduced a new service to the SR&ED program. This new service is called the SR&ED Virtual Service Visit. The service is still in the preliminary stages but here at Braithwaite, we have already experienced some instances with our clients. Below we illustrate what to expect and some opinions we have moving forward.

What is the SR&ED virtual service visit?
The SR&ED virtual service visit is designed to educate companies on the SR&ED Tax Credit. CRA will go into detail about what does and does not qualify for SR&ED, identify the eligibility of projects, qualifying expenditures and how they are tracked, as well as any recommendations.

Who is eligible for the SR&ED virtual service visit?
It is not mentioned on CRA’s website but we at Braithwaite have only experienced our clients who have filed in the past but have not been selected for a review or have spoken to CRA within 3-5 years.

When does the service take place?
Currently, the virtual service is over the phone. An assigned CRA reviewer will contact the company directly.

Is this a mandatory service?
The interesting take on this service is the CRA reviewer will ask the company in question if they have time to speak. If the client is not available, the CRA reviewer with thank them for their time and will accept the claim as filed.

Is this service an audit?
No, this service is not an audit or any type of review.

Braithwaite’s opinion on the service
We currently have some ideas at this time as to what the SR&ED virtual service visit is:

• This new service could be replacing the Claim Advisory Service (CAS). CAS is a designed review for companies that have not been in review/audit or have not spoken to CRA within 3-5 years. The current details above match a CAS review and when you are on the Government of Canada’s page for SR&ED Services and Tools, CAS has now been removed (CRA Services & Tools Page).
• CRA is asking companies about their current service with the program. Is CRA doing a good job of providing the SR&ED funds correctly? Do they need to change anything?
• CRA could be backlogged with reviews/audits, and this could be a way to clean things up.

Whatever the case may be with the SR&ED virtual service visit, Braithwaite Canada will continue to monitor any changes to the SR&ED program. We will make sure each and every company is ready and prepared to take on any challenge from CRA, as well as maximize your companies full SR&ED refund.

Contact Braithwaite Canada today for further information (Contact Us).

Source:
Government of Canada; SR&ED virtual service visit
https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/services-tools/virtual-service-visit.html

Government of Canada; Services and tools
https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/services-tools.html