Scientific Research and Experimental Development Tax Credit Program
There is over $3 billion available to businesses focused on product development, process improvements, innovation and R&D.
The SR&ED tax incentive program is an invaluable asset to Canadian companies like yours. It helps ease the burden of investing in projects that may have uncertain returns but are essential to fostering innovation. We complement this program, making it more actionable and accessible to the companies innovating today and building tomorrow.
What is SR&ED?
Fuel Your Growth Now
The Scientific Research & Experimental Development (SR &ED) Tax Credit Program offers some of the most lucrative tax credits in the world. This program provides more than $3 billion annually to over 20,000 applicants, making it the largest federal innovation funding program in Canada. Administered by the Canada Revenue Agency (CRA), this tax incentive program provides funding to companies conducting research and development (R&D) in Canada. These tax incentives come in three forms: an income tax deduction, an investment tax credit (ITC) and, in many cases, a rebate.
A common misconception about the SR &ED program is that you have to be a cutting-edge lab to qualify. In reality, almost any business of any size can take advantage of the SR &ED program because research and development work can be easily integrated into everyday business operations. If your employees are trying to solve a technology problem that does not yet have a solution, chances are their work will qualify for SR&ED credits.
You may be already doing work that qualifies for SR&ED, such as:
Developing a new manufacturing process or product.
Developing a new software for your business or for your client.
Focusing on improving existing products or processes.
Incurring costs related to a project, prototype or process that is incomplete because of technical problems.
Improving your competitive advantage.
Developing innovative solutions.
Improving current technology.
Research & development.
Activities relating to engineering, design, modelling, data collection, testing or new development work of any kind.
WHAT BUSINESSES QUALIFY FOR SR&ED
Fund Your Business Growth Today
Once SR&ED work has been identified by our professionals, you may be eligible for benefits in the form of a refundable Investment Tax Credit (ITC), a reduction in taxes payable, or both. The federal and provincial tax credits you receive can be up to 64% of salary-related eligible expenses.
Why Our Clients Choose Us?
Agriculture and Agri-food
Oil and Gas
Energy and Natural Resources
Professional Services Firms
Medical and Healthcare Professionals
Construction and Engineering
Food and Beverage
SR&ED Frequently Asked Questions
1. Why didn’t my accountant tell me about the SR&ED program?
Your accountant may not have known that you are eligible. Furthermore, he or she may not have the expertise to prepare a complicated SR&ED claim. Any credible accountant, however, will attest to the legitimacy of the program, when asked.
2. Why didn’t the government tell me about the SR&ED program?
The government will not fill out your tax return for you, or knock on your door to inform businesses that they may have unwittingly over-paid their taxes. However, the program is not hidden. We encourage you to visit the official CRA website where you can learn about the legitimacy of the program, and even attend a free government-sponsored seminar on the topic.
3. Will this trigger an audit?
We do everything we can to avoid an audit, and we recommend a course of action that could lead to an audit! But the SR &ED department and the CRA exam are physically separate and their administrations are intentionally disconnected to avoid program deterrence. SR &ED examiners do not report non-fraud findings to other CRA departments and do not investigate other areas of company operations, such as health, human resources, taxes collected, etc.
We also remind our clients that this is only a claim that matters. In the worst case scenario, the claim will be denied, but there are no penalties for filing a legitimate claim as long as you have not committed fraud. You should also be aware that you have nothing to lose – worst case scenario, you do not get a refund and you do not pay any consultation fees. You can not lose. It’s a no brainer.
4. What if I don’t pay corporate taxes?
Think of SR&ED as an “expenditure credit”. Small and medium-sized companies receive refunds, plus interest, even if they didn`t pay corporate taxes. Sounds too good to be true, but it is indeed the truth. You need to be up to date on your government remittances, however, in order to receive your refund.
5. How much time will this take?
Grand CFS makes every effort to facilitate the process and make it as painless as possible. You will need to spend a few hours with us and provide financial data with which we tabulate your claim, but your Grand CFS consultant will take care of the rest of the claim preparation.
6. Do I need to have a laboratory or sophisticated facility in order to qualify?
No. CRA recognizes shop-floor technology. We have clients that are cabinet makers and sausage makers. If you conduct experimentation and attempt to solve problems during the course of your work, then you could be entitled to a refund, regardless of your premises or education.
7. Do I need to have documentation?
It’s definitely better to have documentation, but we will assess your claim based upon what you have and provide you with the tools and training to document better in the future. CRA knows that first time claimants may not have known about the program, as the SR&ED program is retroactive 2 years.
8. How long does it take to get a refund?
Every case is different. It could take 8 weeks, or 2 years. But most claims are approved within 4 months of submission to the government. Now the federal and provincial governments are harmonized, so processing is quicker.
Now think about it. What are your competitors doing with THEIR refunds? And what could you do with yours!?
9. What is an FTCAS?
First-Time Claimant Advisory Service (FTCAS) is a free in-person service that provides first-time scientific research and experimental development (SR&ED) claimants with an opportunity to meet with local CRA SR&ED staff, at their place of business, to gain a better understanding of the SR&ED Program. During these visits the SR&ED reviewers will provide businesses with advice on the SR&ED Program. This is a guaranteed CRA Approval once the meeting requirements are met. Please ask us for more details or refer to the Canadian Revenue Agency (CRA) website for more information
How we work
Grand CFS’s Proven Path to SR&ED and Claim Success
STEP 1: Online Enquiry
Complete our form by clicking “Apply Now” button.
STEP 2: The Discovery Stage
We arrange a no obligation meeting to review your accounting and income statements and identify all qualifying SR&ED opportunities.
STEP 3: Engagement Stage
We prepare an engagement letter that outlines the unique SR&ED opportunities that exist for your company and reiterates our recommendations for moving forward.
STEP 4: The Claim Filing Stage
The completed SR&ED claim is forwarded to you for review and sign off. We file your claim package with the Canada Revenue Agency (CRA), delivers a copy to you, and files a back up copy at our office for safekeeping.