Transfer of SR&ED Eligible Expenditures Between Associated Corporations For a company having SR&ED work performed by a third company, it can be hard to establish which are the expenditures that can be considered as eligible for the Investment Tax Credit, and more particularly in the case of associated corporations. Therefore, I decided to take this opportunity to clarify the transfer of eligible expenditures
SR&ED Performed on Behalf of a Claimant When an agreement is concluded between a company and a subcontractor to carry out Scientific Research and Experimental Development (SR&ED) work, the total amounts payable in accordance with the contract can be expenses eligible for the SR&ED tax credit. The CRA did not establish a unique criterion that permits the systematic identification of a
SR&ED – Administrative Expenditures – Are You Eligible? In certain cases, it’s possible that other expenditures as those associated with scientific research projects or experimental development projects are eligible for the SR&ED tax incentive. The Canadian Revenue Agency (CRA) has issued the Overhead and Other Expenditures Policy in which rules concerning salary or wages of administrative staff in an SR&ED work context
SR&ED 248.1(D) The Support Work When comes the time to identify your SR&ED activities, the tax law specifies three criteria that must be taken into account: There must be a technological or scientific advancement (248.1 (A)). There must be an uncertainty concerning the aimed technologies (248.1(B)). The work must have been carried out in a field of science or
SR&ED – The importance of providing evidence The success of a computer science project is not solely dependent on the method and tools used to implement it. Innovation would be much simpler if it were the case. Having said this, the establishment of good practices as regards a project’s referential document management is imperative. No need to be a scientist; all
SR&ED – Adjustment and Tax Assessment As an SR&ED tax credit specialist, people often ask me “To which extent can we go back in the past?” When a corporation has filled and submitted its income tax return (provincial and federal), it has 18 months after its fiscal year to modify its income tax return and make an SR&ED tax credit
E-Business Development (TCEB) – Use of Subcontractors for Personnel Placement This short note aims to clarify the notion of admissible incomes relating to Personnel Supply Activities in an E-Business Development (CDAE) scope. In July 2010, NAICS codes regarding Personnel Supply Activities were added to the two already used codes relative to activities percentage, being the 75% and the 50% ones. These two NAICS codes
E-business Development – The Time Sheet Precision A corporation wanting to benefit from the development of e-business tax credit program must fill an eligibility application on an annual basis when it files its income tax return with Revenu Québec. That document must contain a detailed definition of the tasks accomplished by an employee. The tasks must be described in percentage as precise
SR&ED – Impacts of the 2012 Federal Budget On March 29th, 2012, the finance minister tabled the federal budget. Minister Flaherty decided to pursue some recommendations of the Jenkins Report in modifying some SR&ED tax credit expenditures calculation rules. Here is a brief preview: The general SR&ED tax credit rate (intended to corporations whose profits exceed $800,000 and to public corporations) will go
SR&ED – CRA Objection Process In a previous article, I treated the different stages that compose the SR&ED tax credit review process. In conclusion, I briefly took up a stage that could occur after that process, the “refusal.” Today, I decided to summarize the objection process. The first objection level refers to filing a Notice of Objection. In other
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