SR&ED seminars and workshops near you

The Canada Revenue Agency has posted new dates and locations for SR&ED seminars and workshops near you. Click on the links bellow for more information:

• Information session on Access to Scientific Research and Experimental Development (SR&ED) Tax Incentives in Agriculture in Joliette, Québec on November 4, 2010. http://www.cra-arc.gc.ca/txcrdt/sred-rsde/cntcts/tslv-eng.html

• Public General Information Seminar in Waterloo, Ontario on November 10, 2010. http://www.cra-arc.gc.ca/txcrdt/sred-rsde/cntcts/tshm-eng.html

• T661 Workshop in Edmonton, Alberta on November 30, 2010. http://www.cra-arc.gc.ca/txcrdt/sred-rsde/cntcts/srdpr-eng.html

• Public General Information Seminar in Edmonton, Alberta on February 8, 2011. http://www.cra-arc.gc.ca/txcrdt/sred-rsde/cntcts/srdpr-eng.html#edmonton

Cheers

M

TODAY'S SR&ED DEFINITION:

Investment Tax Credit (ITC): An amount that businesses are allowed by law to deduct from their taxes, reflecting an amount they reinvest in themselves. Investment tax credits are structured to reward and encourage economic growth.

For more information on the SR&ED program, visit www.quadris.ca

What is SR&ED and why make a claim?

The Canada Revenue Agency describes Scientific Research and Experimental Development (SR&ED) as a federal tax incentive program designed to encourage Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada that will lead to new, improved, or technologically advanced products or processes. By applying, a Canadian-controlled private corporation can earn an investment tax credit of 35% up to the first $2 million of qualified expenditures for SR&ED carried out in Canada. Public corporations and other tax payers are also eligible for credit at a reduced rate.

Additionally, provinces offer supplementary credit with rates varying by province. Together, the federal and provincial R&D tax benefits combine to make Canada's Research and Development incentive program among the most generous on the planet. In the province of Quebec for example, the credit rate varies between 17.5% and 37.5%, which, when added to the Federal credit, could produce total benefits of over 82% for eligible wages and salaries. Qualified expenditures also include materials, machinery, equipment, some overhead, and SR&ED contracts.

Long story short: 

Your company spent $100,000 on eligible projects? Submit a claim, and you might receive cheques for a total sum of over 82,000$. When you know that the credit is non-refundable, there is no need to ask why you should be making a claim. It simply pays to do SR&ED.

Regards,

M

TODAY'S SR&ED DEFINITION:

Canadian-Controlled Private Corporation (CCPC): A CCPC is a special type of Private Corporation that is also a Canadian Corporation. In order to qualify as a CCPC it must not be controlled, directly or indirectly in any manner whatever, by public corporations, non-residents or a combination of the two.

For more information on the SR&ED program, visit www.quadris.ca

Welcome to SR&ED Resource: The R&D Tax Credit Blog!

Here it is. The first of what I hope will be many postings on the gripping topic of SR&ED. Fine, I'll admit that R&D tax credit may not be the most riveting of subjects, but if you are a business owner or manager, knowing more about it is certainly lucrative. Once you find out that, in Quebec for example, you can recover up to 82 cents for every dollar spent on wages for qualified projects (in addition to expenditures in materials, machinery, equipment, some overhead, and SR&ED contracts), the coolness factor of SR&ED suddenly grows. (In fact, word on the street is that all the hip executives are claiming, so if you’re not one of them, you should consider getting in on the action). Canada boasts one the most generous R&D incentive programs on the planet, and not taking advantage is a missed opportunity.

Regrettably, claiming your R&D tax credits isn’t always self-evident. Producing a claim can be a mystifying and complicated process, full of gray areas and guidelines that can easily be misinterpreted. Specific expertise relating to the program and relevant technology is often needed in order to get a maximal return. A new claimant always has many questions. Is my project eligible? What do I need to put in my technical description? What expenses can I claim? Did I claim all the credit that I was entitled to? What kind of documentation is required? How do I keep track of R&D work? What happens in a Canada Revenue Agency audit?  These and many other issues will be addressed in this blog. Advice, hints, tips, definitions, clarifications, program news and updates, SR&ED seminar dates and locations will all be made available to readers. Of course, years of experience and acquired knowledge simply can't be imparted via a blog, and the best way to ensure that you get an optimal return remains to work with an expert.

Good reading!

M

TODAY'S SR&ED DEFINITION:

SR&ED (Scientific Research & Experimental Development): The Scientific Research and Experimental Development (SR&ED) program is a federal tax incentive program designed to encourage Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada that will lead to new, improved, or technologically advanced products or processes. The SR&ED program is the largest single source of federal government support for industrial research and development.

For more information on the SR&ED program, visit www.quadris.ca