New Claim          

First SR&ED Claim

If this is your first year claiming for Federal and Provincial tax credits or refunds for your product R&D, you should utilize an SR&ED expert.  First impressions are important to avoid being tagged by government as a "non-compliant" claimant.  Submitting a proper claim the first time, will facilitate audit-free approvals in subsequent years.

First-time claimants need to give CRA reviewers the confidence that they are advancing an industry sector or their business environment, not just claiming their standard business practice.  Any documents that show "peer review" of the company's technology and business (tradeshows, Web sites, articles, patents, public appearances, etc.) should form part of claim.  Get expert advice to claim only eligible projects and qualifying expenses: major adjustments to your claim this year will trigger future detailed audits.

Current Claim

Each year, the SR&ED claim should be filed concurrent to your normal corporate T2 (within 6 months of year-end).  While you do have an additional year before the opportunity expires, filing the SR&ED claim after the T2 will cost you a delay in getting cash refunds.   Delayed filing may be appropriate if you missed a tax year (too busy) or costs were too small to warrant.

Audit & Approval Process

Once claims are filed at the taxation centre, they undergo three stages of processing.  Local taxation offices receive the claim, log in the basic information and do a "completeness check". Legally incomplete claims are rejected with a phone call or letter requesting additional information within 30 days.  Claims that are "workable" are desk-checked  by technical reviewers and financial auditors.  Claims may be approved or issues identified requiring a site audit by both a technical and financial auditor (now called "reviewers").

Government technical reviewers tend to visit as many first-time claimants as time allows.  This does not necessarily indicate a negative reception of your claim submission.  Many visits are conducted to promote the program or because your work looks interesting at desk review. Complex claims are contracted out to external consultants - experts in a technology or science, but not necessarily in your industry or in tax law.  Only you are the "expert" on your work.

 Once a negative opinion has been expressed by a reviewer, verbally or in writing, you need our support. Don't take the first "not eligible" opinion without a second informed opinion. We will attend subsequent audit meetings to support your entitlement after reviewing your evidence. Our approach is cooperative and factual, not confrontational.  We cite the law, CRA policy and the evidence. If necessary, we prepare a follow-up written rebuttal to address the reviewers' concerns.