Here are a list of the questions currently answered in our FAQ. Have a question not addressed here? Send us an email.
General SR&ED Questions
- What is the SR&ED program?
- Why do governments offer SR&ED tax credits?
- How do Canada's SR&ED costs compare to those of other countries?
- How do I apply for SR&ED credits?
- Who can claim?
- What provincial incentives are available?
- Can't our own accountants prepare our SR&ED claim?
- How much time and work would be required from our staff to prepare a claim?
- Will this increase the chances of a total business audit?
- Will my competitors find out about my research & development?
- What advice can you give to new developments or start-up companies?
- Does the work my company is doing count as SR&ED?
- What are my chances of approval?
- Who are classed as "qualified personnel"?
- What if my research was unsuccessful?
- Is my project eligible for SR&ED credits if a competitor already offers a similar product?
- What is the difference between experimental and commercial production?
- Can we claim the work done in clinical trials as SR&ED?
- How much money will I get back? Are the tax credits refundable?
- What if there's no taxable income?
- Can ITC's earned for SR&ED be carried either back or forward?
Dates and Deadlines
- I just found out about this program. Can I claim SR&ED credits for work done in previous years?
- What if my SR&ED project spans fiscal years?
- How long do I have to make a claim?
- Is the 18 month deadline based on the number of days or the number of months after the end of the taxation year?
- How can I prove that the "prescribed information" was filed in time?
- When does an SR&ED claim need to be filed in order for the CRA to review and advise the claimant of any deficiencies in the claim?
- How long will it take to process my claim?
- My taxes are due, but I need a bit more time to complete my SR&ED claim. Should I file the claim now, and submit the SR&ED claim as an amendment, or delay the return, and submit both together?
- What if this is our first claim and we haven't kept formal R&D records?
- What are some tools available for identifying "existing standard practices"?
- What kind of additional technical supporting documents are required?
- What kind of financial supporting documents are required?
- Do we have to send in all our supporting documents with the SR&ED claim?
- Are "statements of work" required for subcontractors?
Payments to Universities
- What are the issues involved when hiring universities or research institutes to perform eligible "third party" research?
- What are the issues involved with payments to universities or other research institutes in Ontario?
- What expenses are eligible?
- What capital expenses can be claimed?
- How does government funding received for a project affect my SR&ED claim?
- What employee benefits can be included in eligible "salary or wages" for SR&ED claims?
- What administrative salaries or wages can be claimed under the traditional method of calculating investment tax credits?
- Can retiring allowances be included in SR&ED claims?
- Are stock options exercised by an employee allowed as "salary or wages" for SR&ED claims?
- Foreign contractors in Canada - are these costs eligible to claim for SR&ED?
- Ensuring SR&ED eligibility- 'subcontractor' vs. 'royalty' agreements
- Can we claim SR&ED expenses that are unpaid within 180 days of year-end?
- What if we sell our prototype - what costs are eligible for SR&ED tax credits?
- Are payments to acquire rights (eg, royalty payments) ever eligible for SR&ED?
- Can water and energy sources be claimed as 'consumed materials'?
- Are salary & wages incurred outside of Canada eligible for SR&ED credits?
- Are farm producers eligible for SR&ED investment tax credits through Agricultural organizations?
- For SR&ED tax credit purposes, how far does "Canada" extend?
- What is a 'specified employee'? What are the restrictions on SR&ED labour inclusions and limits for specified employees?
- What are the SR&ED implications of "Associated" vs. "Related" vs. "Connected" corporations?
- What are "de facto" vs. "de jure" control?