SR&ED (Scientific Research and Experimental Development) Program is the flagship investment for incentive program created by the Canadian government. It provides financial support to Canadian companies that are involved in improving existing or creating new technologies, to stimulate scientific advancement in the country.
Services offered by the SR & ED tax program to the clients
- The SR&ED tax credits program has been governed by the Canadian Income Tax Act since its creation in 1986, and supports the development of products and processes in Canada.
- Over $3 billion in tax credits are awarded yearly
- The program provided at the Federal and provincial levels, and recovery can be as high as 68 per cent for Canadian Controlled Corporation, and as high as 43 per cent for publicly traded, large private and foreign companies.
- Eligible expenses include salaries, contractors costs, material transformed or rendered useless in the experiments
- The SR&ED tax credits applies to companies of any size and in every industry.
- Tax credits are not limited to R&D; some of the eligible work can even be found on the shop floor. Companies do not need to succeed, or be the first to develop the technology. Even of a company is paid for the work it might still be eligible.
- Since 2012, the federal and provincial governments have been tightening the SR&ED program by reducing credits, increasing compliance and substantially increasing the number of adults.
- In spite of these changes, the SR&ED program continues to be a leading incentive program in Canada and it remains one of the best worldwide in support of innovation.
The primary job responsibility for the SR&ED Consultants is to prepare claims for SR&ED tax incentives for their portfolio of clients. This role includes:
- Evaluating client project and activities in relation to the SR&ED tax incentive program.
- Executing SR&ED claims in planning and organizing them, in addition of structuring projects according to government criteria, and interviews of technical personnel.
- Collaborating with clients’ staff and identifying expenditures involved in those projects.
- Preparing the required technical reports corresponding to eligible expenditures.
- Evaluating clients’ documentation systems, training staff and developing strategies to maximize claim benefits, following the methodologies and tools developed by Ayming.
- Advising and acting on behalf of our clients to support claims under review by CRA.
- Maintaining records, managing audits, prioritizing tasks for multiple clients to consistently achieve delivery milestones and using CRA to handle communication.
- Determining eligibility for any additional Ayming products/services and identifying opportunities in clients’ operation that can benefit their businesses.
- Maintaining all reporting tools in a timely and accurate manner and following internal processes and procedures.
Choosing the right SR&ED consulting firm
Choosing a professional, ethical and experienced SR&ED firm has become increasingly important in the Canadian R&D landscape. The Canada Revenue Agency is continually raising the standard of expectation in claims, hiring additional staff reviewers and making improvements to the SR&ED claim form. Since the CRA is expecting better prepared SR&ED claims, it is no surprise that they are also reviewing more claims and denying more claims based on improper documentation.