Ensuring that you receive your SR&ED tax offset
The preparation of an SR&ED tax incentive claim involves the:
- Collation and analysis of technical information;
- Preparation of formal government documents and additional technical documentation;
- Utilisation of detailed accounting methodologies; and
- Application of the SR&ED tax incentive and CRA administrative processes.
Who is eligible to claim the SR&ED Tax Incentive?
The credit is aimed at small and medium sized companies as well as large corporations. The criteria which must be met in order to qualify are defined by the CRA, and include the following activities:
- The design and development of new products
- Changes to work-flows and processes
- The design and installation of new software and computer systems
- Development of products which have not yet gone into production
- Improvements to existing products
Understanding your entitlements
Rather than just looking at the credits that your company can claim, it is important to also ensure that those credits are retainable. This means that a greater understanding of your company’s processes and activities is needed so that the requisite advice can be provided about creation of the documentation needed to support future claims and maintaining the tax credit in place. Swanson Reed’s professional team has the expertise and knowledge required to support all SR&ED tax claims and ensure that you are receiving the full benefit of the finances to which you are entitled.
What are the benefits?
It stands to reason that any company which benefits from extra tax credits will have an improved cash flow and also gain from lower tax liabilities. This also means that companies which are in receipt of these extra finances are well placed to invest in their own business and prioritize their activities allowing for growth and expansion. In the longer term, this provides a huge boost for the Canadian economy. In addition, the result of the increased SR&ED into new products and manufacturing techniques benefits the population as a whole.