BPAI offers Scientific Research & Experimental Development (SR&ED) claim preparation in partnership with Research Tax Services Ltd.
What are Scientific Research and Experimental Development (SR&ED) Income Tax Credits?
The program provides financial support to businesses and individuals that conduct SR&ED in Canada. In many cases, the credits are refundable, i.e. you will receive a cheque from CRA.
How do I qualify?
- Fashioned a new product?
- Improved an existing product?
- Developed or improved a process?
- Improved or changed the way your products are manufactured?
- Built a prototype?
- Evaluated a new relationship between two or more variables?
If you answered yes to any of the above, you may qualify.
- For Canadian Controlled Private Corporations (CCPC)
- Investment Tax Credits (ITC) are earned at 35% on the first $2 million of eligible expenses, 20% thereafter.
- Individuals and partnerships:
- 20% of eligible expenses earn a tax credit.
- SR&ED capital expenditures can be depreciated entirely in the year of their purchase.
- Non-refundable tax credits can be carried back 3 years and carried forward 10 years to off-set Part I federal income tax.
- Retro-active claim period:
- Claims can be submitted up to 18 months from a fiscal year end.
- It is often possible to apply for a Pre-Claim Project Review, which will provide some surety of claim acceptance.
What expenditures qualify?
- contract payments
- overhead costs
- third party payments
- some lease costs for R&D equipment
- capital expenditures where at least 50% of the usage is for SR&ED
How will you be paid?
- Current expenditures: 100% refundable tax credits
- Capital expenditures: 40% refundable tax credits
- Individuals and Partnerships
- 40% refundable
What we will do:
- Discuss your project informally to provide professional advice about whether your project will qualify.
- Interview your staff to identify projects that may meet CRA eligibility criteria so we can prepare technical documentation.
- Identify all the costs associated with the projects to prepare the tax forms.
- Prepare all the technical and financial prescribed forms for you and work with your accountant to ensure the forms are properly handled.
- Coach your staff to collect the required data
- Assist you in the event of an eligibility review by CRA
What do you have to do?
- Verbally describe your project
- Collect your financial records together (receipts or general ledger)
- Sign the forms
No Risk Fees
- Contingency-based fees eliminate financial risk and ease cash flow uncertainties to your company. We only get paid IF and WHEN you do.