Telos Business SolutionsScientific Research & Experimental Development Consultants
how it works
SR&ED: How does it fit with your business?
If you are an innovative company, it is your right to apply for the SR&ED tax credit. The Canada Revenue Agency wants to qualify your R&D for this program because they know that the Canadian economy can only benefit from your success. The program rewards companies in any technical field doing work that pushes limits, challenges processes or refines specifications.
Very few companies are aware of the SR&ED program, and even fewer understand the claim process.As a result, it is estimated that only about 15% of eligible companies apply. This program, when applied for properly, can result in generous tax credits or refund cheques. One of the great things about the SR&ED program is that you can apply year after year, as long as you continue to participate in eligible activities.
The success of your claim is based on how well activities are identified and explained. Telos simplifies the process.
Eligible Activities
- Experimental Development
Work done to achieve a technological advancement that creates or improves new products, processes, devices and materials. Most R&D claims fall under this category.
- Applied Research
Work done to advance scientific knowledge with a specific practical application in view. Rather than creating a new product, process, device or material, the research done here is more theoretical or conceptual in nature.
- Basic Research
Work done to advance scientific knowledge without a specific practical application in view.
- Support Work
Done in conjunction with the above types of research, including engineering, design, operations research, mathematical analysis, computer programming, data collection, testing and psychological research.
Applying for SR&ED
To apply for the SR&ED program, you must submit detailed technical and financial reports to the SR&ED division of the Canada Revenue Agency. Your claim will be reviewed and judged based on how well you can answer the following questions:
- Technical Objective
What are you trying to accomplish?
- Base Level Knowledge
What is the available knowledge within your company or within your industry at the outset of the project?
- Advancement Sought and Related Uncertainties
What questions are you looking to answer? How will you know when you are successful?
- Description of Work
What exactly have you been doing, how have you been doing it, and what do you need to do moving forward?
- Supporting Documentation
Timesheets, logs, receipts, digital photos, video, and other available documentation.
