Technological Uncertainty and Advancement
Technological uncertainties and technological advancements are the two key criteria for SR&ED claim eligibility for any company. In the event that a firm is faced with a problem, it will try and improve its current product, process or technologies to solve the issue. Technological uncertainty in the SR&ED field is defined when a company is working on a project and encounters problems that cannot be resolved with standard practices or existing knowledge on a global scale.
The SR&ED approach makes sure that the company is able to generate re-usable scientific or technological knowledge that was not previously possessed or perhaps was not in the public domain. This marks the technological advancement stage, which may result in the development of new or improved products and processes leading to the utilization of resources in a more efficient manner. This could be due to increased efficiency in the whole process or due to a reduction in the complexity of the process.
For further clarification on the SR&ED claim process, please contact one of our experts at Swanson Reed R&D Tax Advisors.