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?

Have you:

  • 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?

  • labour
  • materials
  • 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?

  • CCPC:
    • 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.