Tech

The right steps that companies should take when preparing for SR & ED programs

It is vital to encourage businesses to conduct extensive research and development across all industry segments. The Canadian Revenue Agency (CRA) has introduced the Scientific Research & Experimental Development (SR & ED) programs for companies of all sizes that help to make Canada a technologically advanced nation and gain a competitive advantage. Being one of the most generous incentive programs in the world, it is quite complicated. To earn the incentives, also known as SR & ED credits, you must hire a trusted consultant to navigate the complicated course and ensure success.  All incorporated companies can avail of the SR & ED program that is the most important and even the country’s largest tax incentive program.

Who can prepare SR& ED programs?

For preparing SR & ED claims, which is a highly specialized and complex job, companies must hire professional practitioners who have enough experience and an impressive track record of helping companies earn incentives, tax credits, and refunds. To earn tax credits, companies must build a case that proves the technological advancements that have helped overcome some obstacles or technological uncertainty and have become a game-changer that is beneficial for the country. To prove the case, the company must prepare a technical content dossier backed by a systematic investigation. The funding application is part of the company’s corporate tax return, which can provide generous grants that are refundable with interest if approved.

The need for a consultant

The claim filing process is elaborate and complicated that requires massive data assimilation and documentation over an extended period in compliance with the income tax rules, making it inevitable to involve a consultant who is an expert in the field to do the job. Companies usually outsource the service, and the consultant plays a critical role in ensuring that the claim gets through.  The task is far from easy, and meeting the basic criteria is not just enough to build a strong case and prepare to face the CRA scientific auditor if the case is selected for review. The auditor will scrutinize the case to ensure that it is in strict compliance with the income tax act. The consultant is equipped with sophisticated tools and follows the time-tested methodologies backed by systematic evidence and contemporary documents to navigate the audit successfully.

Know your eligibility

Although you can know about the eligibility criteria from the published guidelines, whether you can make a case for filing a claim needs a thorough analysis of your business achievements in the respective area. This is when you need to involve a consultant to evaluate if you have a case, and if you have it, what are the chances of succeeding.  The consultant studies your business papers thoroughly to determine the merit of the case and whether it will be possible to provide all technical documentation and systemic evidence to prove the point convincingly and get the claim.

The consultant’s guidance is essential to make a comprehensive assessment to ascertain your eligibility and determine the possibilities of making a convincing case that culminates in the approval of tax credits or refunds.

 

 

Anna Duke

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