PCPR

  Potential SR&ED

(Pre-Claim Project Review)

 In recent years the government has offered an up-front project review called "PCPR".  This service from Canada Revenue Agency (CRA) is a double-edged sword.  Under the best of circumstances, it may facilitate the claim preparation process and may be desirable before embarking on major R&D initiatives. It is only available on a single project - not a full claim.  It entails a site inspection which essentially requires being subjected to the time and costs of a double audit - once for PCPR and again when the claim is filed. The reviewers will likely not be the same people.

Without prior knowledge of your area of industrial R&D, CRA cannot allocate the most appropriate technical reviewer to conduct an on site PCPR.  Chances are that the reviewer will not  give an opinion in writing.  If his/her opinion is negative, it may dissuade you from filing a claim without full consideration of your legal entitlements.  If it is positive, it is not binding on the government and may be reversed at the claim review stage.

Government reviewers report their opinions to file - which affect reviews of future claims.  A poorly presented proposal during PCPR creates a negative climate for a future tax credit claim.  It will trigger an on-site audit. One negative PCPR for one project taints the entire claim.

Our PCPR Service:

Our consultant has conducted hundreds of PCPR reviews on behalf of CRA in his prior career.  He knows the issues and the best approach to presenting proposals for future claims.  Our on-site review gives you strategic advice and allows you to optimize your  presentations to make the best first impression with the Government of Canada when you do claim.

We will prepare a written assessment of your entitlements for all projects under Federal and Provincial legislation.   The cost of our PCPR should be offset by the reduced claim cost if we prepare the final claim. Our report for PCPR may also facilitate bank financing for your SR&ED costs since we put it on paper, backed by our reputation.

Staff Training:

Our PCPR service helps train your staff to recognize SR&ED.