SR&ED Tax credits - one of the most generous tax credits offered in Canada
Businesses invest significant resources to the scientific research and development (SR&ED) of new products in Canada. The Canadian government has encouraged innovation by offering tax benefits for SR&ED activities. It is one of most generous tax credits offered in Canada.
Most of the businesses that are conducting qualifying SR&ED activities are unaware of these tax credits. We have found that businesses believe that they need more employees, formal lab type setting with scientists doing experiments, multi-million dollar revenue stream. All of these beliefs are not true. The operation can be owner operated business to qualify as long as rest of the criteria is met. Even when the experiment failed or you did not achieve desired outcome, you could apply for SR&ED to cover those expenses. There is another misconception that it might be expensive to apply for these credits. That’s not true either since you can pay Awerix CPA when you have received approval from CRA. SR&ED activities for some small and medium-sized businesses are integrated with daily business activities, meaning that SR&ED can just as easily be carried out on the production floor of your business.
WHAT is SR&ED?
Any business – small, medium-sized or large corporates that conducts scientific industrial research and development to develop or improve products, processes, services, methodologies or raw materials can apply for SR&ED tax credits. Companies that are not generating revenues could also apply for these tax credits as long as they qualify rest of the criteria. The SR&ED program is one of the programs by the Government of Canada to support businesses that carry out these activities to cover a percentage of these expenses with these tax credits.
If you are trying to overcome a technical limitation of the work you do or plan on doing in the course of operating your business or providing goods or services to your clients, there is a very good chance that you may be conducting SR&ED-eligible research and development. We can assist you in determining whether the work you do is eligible for SR&ED funding. We will also fill out all the necessary paperwork, because of our vast experience filing for SR&ED for our diverse clientele, who work in a wide variety of industries. No matter how technical or unusual your line of work might be, we can help you. Don’t let SR&ED filing be a hassle for you or your firm.
Though we have high success rate in terms of identifying SR&ED activities, we understand that there is some uncertainty associated with these claims. We at Awerix CPA have structured our fees on a percentage basis for our clients. If your claim is unsuccessful, you donot need to pay us anything. Therefore, Awerix CPA has made an attempt to reduce risk for its clients with great incentive program that comes with sizeable financial benefits.
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