What is the SR&ED Process?
The application for the Scientific Research and Experimental Development tax credit has quite a few steps. However, if followed correctly, it becomes a process that every eligible firm should undertake as the tax benefits are well worth it. The first step in the process involves identifying eligible activities or projects of the firm.
One of the secrets of maximizing on the benefits of the SR&ED process is to create a unique SR&ED case study claim strategy. This ensures that you maximize your SR&ED submission. You should then identify all the associated supporting documentation to enable you to defend your SR&ED claims.
The next step would be to prepare a technical report for each of the SR&ED projects. It should be in accordance with the Canadian Revenue Agency (CRA). This is the body that is in charge of the SR&ED program in Canada. They work with both the federal government as well as the territorial governments in ensuring that the program runs in the most appropriate way to the benefit of firm owners. Financial expenditures that meet the cut end up qualifying for the program’s benefits.
SR&ED tax schedules should be prepared and filed with the corporate tax returns. The preliminary SR&ED consultation involves:
- Assessing eligibility of the forwarded claims
- Identifying all areas of qualifying activities
- Providing a rough estimate of the value of your claim
There is then the technical write up, which helps in:
- Assisting you to state and describe the technological objectives, risks and advancements of your firm
- Assists you to provide your systematic Research and Development approach and effort
- Ensuring that you maximize your SR&ED claims
The filing process should ensure that you are able to coordinate the claim process with your accountant and review all the relevant forms. You should then ensure that you follow up with the federal and provincial agencies to ensure that the process is seamless. For assistance in lodging a claim, Swanson Reed R&D Tax Advisors can help. Contact us today.