Scientific Research & Experimental Development
Under the Scientific Research and Experimental Development (SR&ED) investment tax credit program, Canada offers some of the most generous tax credits in the world. The partners and professionals of Collins Barrow can help bring clarity and guidance to benefit from your innovation and capitalize on one of the most generous R&D tax credit programs in the world.
Canada's prosperity has, to a large extent, been driven by the spirit of innovation: the creation of new products, improved processes or even the enhancement of technology. The Canadian government recognizes innovation and has created an incentive program that it views as the cornerstone of Canadian competitiveness - the Scientific Research and Experimental Development (SR&ED) investment tax credit program).
When people think of "Research and Development", images of chemistry labs or engineers in hard hats come to mind. However, even rudimentary development work in most Canadian businesses and industries could qualify for SR&ED tax credits. The professionals at Collins Barrow recognize the importance of this tax incentive program for Canadian companies and is uniquely positioned to provide the requisite tax expertise to maximize value through our knowledge of the SR&ED program. Let Collins Barrow help you achieve credit when credit is due.
Maximizing the Possibilities
At Collins Barrow, we can help you maximize your claim potential while minimizing your administrative burden. We have worked with this tax credit for over 15 years in all sectors and industries.
Generally speaking, a Canadian-controlled private corporation can earn an investment tax credit of 25% up to the first $3 million of qualified expenditures for SR&ED carried out in Canada, and 20% on any excess amount. Other Canadian corporations, proprietorships, partnerships, and trusts can earn an investment tax credit of 20% of qualified expenditures for SR&ED carried out in Canada. Tax credits under this program range from 20-35% of eligible Research and Development (R&D) costs. Plus, for certain Canadian-controlled private corporations, the credit is refundable even if tax isn't owed. In fact, you are probably already conducting R&D work that qualifies for this SR&ED tax credit and may not be taking advantage of the programs in place.
Some activities are not eligible for benefits under the program and include: social science and humanities research; commercial production of a new or improved material, devise, or product, or the commercial use of a new or improved process; style changes; market research or sales promotion; prospecting, exploring or drilling for or producing minerals, petroleum, or natural gas; and development based solely on design or routing engineering practice.
How we can help?
Collins Barrow professionals can help identify and claim the eligible R&D activities. Our services are tailored to your needs and include:
- Optimizing the identification and tracking of eligible projects through a thorough review of business processes.
- Preparing and arranging the technical reporting aspect of SR&ED projects.
- Identifying eligible SR&ED costs on a project basis.
- Working with your firm to ensure synergies between your SR&ED submission and client's tax return.
- Providing advice and tax planning strategies to minimize the overall tax burden.
- Providing training to the appropriate departments and staff on the criteria, parameters and requirements of the SR&ED program.
- Where applicable meeting with government auditors or other officials to maximize the potential that your claim will be accepted.
We recognize that SR&ED is a vital part of your business success and are here to help you maximize the potential of this credit. Speak to a SR&ED professional today.