10 things you might not know about SR&ED

Question 10 SR&ED basics

1 Your application for SR&ED funding is part of your corporate tax return.

2 Get your money faster! Filing your SR&ED claim in conjunction with your corporate tax return (within 6 months of your fiscal year-end) cuts claim processing time by 50%.

3 Canada’s SR&ED program is administered by the Canada Revenue Agency (CRA).

4 The biggest reason for claim denial is insufficient or inappropriate evidence – not ineligibility.

5 It’s true, you can receive a cheque in the mail from the government!

6 Alternatively, you may receive “non-refundable" SRED tax credits. These can be applied against corporate tax owed.

7 The CRA wants you to document your SR&ED activities contemporaneously (i.e. as they occur). Ask us about this one – don’t worry that you’ve missed the boat! 

8 Some cases are selected for review. If yours is, a CRA scientific auditor will analyze your case in compliance with the current CRA policy documents. You will be asked to provide detailed explanations and additional evidence. We can help.

9 At Engineva, we believe that CRA randomly reviews some claims that have passed the initial, basic scan (all boxes have been checked; content makes sense). Then, others are selected for an in-depth review as a result of red flags in the basic scan.

10 Less is more with the CRA. The more information you give, the more red tape you risk. We can help you avoid giving the CRA that red tape opportunity – contact us to find out how.

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