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Glossary

Following are some terms and acronyms used frequently on this site:

ASA
All or Substantially All (>90%)
CCPC
Canadian Controlled Private Corporation - a CCPC has NOT more than 50% of their shares controlled by "public corporations" or "foreign parties". A more detailed definition is available from the Canada Revenue Agency.
Claimant
The taxpayer who is claiming SR&ED credits. May be an individual or corporation.
CRA
Canada Revenue Agency, formerly known as the CCRA - Canada Customs and Revenue Agency.
OITC
Ontario Innovation Tax Credit - a 10% refundable tax credit for qualifying public and private corporations having a permanent establishment in Ontario. Only expenditures for scientific research and experimental development (SR&ED) carried on in Ontario, for which the taxpayer is eligible for federal (SR&ED) investment tax credit, qualify for the OITC.
ITA
Income Tax Act - the legislature governing SR&ED credits
ITC
Investment Tax Credit
Proxy Method
The method of calculating SR&ED overhead where overhead = 65% of direct SR&ED salaries. The other option for calculating SR&ED overhead is the Traditional Method.
R&D
Research and Development
SR&ED
Scientific Research and Experimental Development. To qualify as SR&ED, work must advance the understanding of scientific relations or technologies, address scientific or technological uncertainty, and incorporate a systematic investigation by qualified personnel.
Technological Advancement
"The discovery by the claimant of technical knowledge that advances the understanding of scientific relations or technologies."
TCC
Tax Court of Canada - a specialized court of law whose jurisdiction includes the Income Tax Act.
Traditional Method
A method of calculating SR&ED overhead where overhead = actual overhead costs as it relates to SR&ED activities. The other option for calculating SR&ED overhead is the Proxy Method.
YMPE
Yearly Maximum Pensionable Earnings as defined under the Canada Pension Plan. YMPE is used to calculate the maximum amount of salary & wages that can be claimed under the SR&ED program for specified employees (those that own >10% stock in the company).