• Success Stories
  • Our Team
  • What We Offer
  • Process
  • Industries We Service
  • SR&ED
    • SR&ED Tax Credit
    • SR&ED Calculator
    • SR&ED Planning
    • SR&ED Filing Deadlines
    • SR&ED Reviews
    • SR&ED Free Webinars
  • Recent News
  • 1-416-499-2861
  • info@braithwaite.ca
Free Consultation
  • Success Stories
  • Our Team
  • What We Offer
  • Process
  • Industries We Service
  • SR&ED
    • SR&ED Tax Credit
    • SR&ED Calculator
    • SR&ED Planning
    • SR&ED Filing Deadlines
    • SR&ED Reviews
    • SR&ED Free Webinars
  • Recent News
Twitter
Linkedin
Facebook
  • 1-416-499-2861
  • info@braithwaite.ca
Free Consultation
  • Success Stories
  • Our Team
  • What We Offer
  • Process
  • Industries We Service
  • SR&ED
    • SR&ED Tax Credit
    • SR&ED Calculator
    • SR&ED Planning
    • SR&ED Filing Deadlines
    • SR&ED Reviews
    • SR&ED Free Webinars
  • Recent News
Twitter
Linkedin
Facebook
All  ·  SR&ED

When To Capitalize On My Companies SR&ED Claim – Development Or Commercialization?

By admin  Published On February 10, 2021

From start-ups to SMEs to large corporations, we often find companies asking us, “when should we claim our SR&ED projects for the year” and “what activities qualify”? Usually, companies new to the SR&ED program tend to look at the commercialization of a project. The sales and marketing team put hours into the new product development, ad revenue is spent, licensing agreements, travel plans, international deals, and so on. All are great steps in the commercialization process but none of these steps would qualify for the SR&ED Tax Credit. The SR&ED Tax Credit focuses on the first step of the commercialization process, research, and development (R&D). The R&D is the means of systematic investigation or search that is carried out in a field of science or technology by means of experiment or analysis and is either, basic, applied, and/or experimental development. For detailed information on the three definitions, please click here. Now that the R&D has been defined, we will look at areas to strengthen the SR&ED claim.

Determine Project Uncertainty
To take advantage of the SR&ED Tax Credit, Canada Revenue Agency (CRA) wants a company to demonstrate a scientific or technological uncertainty. Using products or services off the shelf do not qualify and will cause a claim to be audited if submitted to CRA. As well as the final steps of commercialization, CRA will not take this into account, the final product is not what they are looking for. For example, a software company wants to create a product that is not readily available in the marketplace, nor is the technology known to the company. The formulation, trial, and error to invent this product would all qualify under the SR&ED Tax Credit.

Technical Tracking
It is important during the SR&ED project that all technical work is documented correctly. CRA wants to see proper documentation to illustrate the work conducted on the uncertainty. Timestamping with a project description will go a long way in filing a successful claim. When we look at the final product during the commercialization process, many companies may have overlooked or even neglected to track what the R&D process was. Again, the sales and marketing outline of a product does not constitute as SR&ED.

Financial Tracking
Just like technical tracking, it is important to maximize the SR&ED Tax Credit Claim by documenting all T4 employees or subcontractors in Canada who worked directly on the project. Their time put into the project will make up the majority of the SR&ED claim. Thank you, sales, and marketing team but your efforts during the commercialization process do not qualify.

In summary, companies need to understand that the SR&ED Tax Credit Claim is meant to promote research and innovation across Canada through the uncertainties developed by a company. The final product and costs outlined to market the product are not eligible criteria. Maximize your SR&ED Tax Credit Claim by introducing steps to track, document and properly articulate your companies innovation on paper.

Braithwaite Advantage
Braithwaite Canada will introduce to your team a 7-step process to maximize your companies SR&ED claim by 5%-20%. From detailed technical write-ups, CRA friendly costing templates and filing on your behalf, trust the experts at Braithwaite Canada. For a detailed breakdown of our 7-step process, please click here

Get Innovation Funding Today

Engage our experts to optimize your SR&ED claim process, manage the compliance burden and reduce uncertainty
Contact Us

Tracking The Canada Emergency Wage Subsidy With The Government Of Canada's CEWS Registry Tool
Previous Article
What Is A Claim Advisory Service SR&ED Review?
Next Article

NAVIGATION

Success Stories
Our Team
What We Offer
Process
Industries We Service
SR&ED Tax Credit
SR&ED Calculator
Recent News
Contact

 

CANADA

906-2235 Sheppard Ave E
Toronto, ON M2J 5B5
Office: 1-416-499-2861
Email: info@braithwaite.ca
Fax: 1-416-499-8543
eFax: 1-437-889-0955

IRELAND

28-32 Upper Pembroke Street
Dublin 2, D02 EK84
Office: +353 1 653 0199
Email: info@braithwaite.ie

UNITED KINGDOM

16 Great Queen Street
Covent Garden
London, WC2B 5AH
Office: +44 (0) 203 633 6819
Email: info@btrcl.co.uk

Twitter
Linkedin
Facebook
© Braithwaite Technology Consultants Inc 2021. All rights reserved.
Privacy Policy
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT