During the late 1980s and early 1990s, a dubious practice emerged whereby some Canadians corporations established general partnerships with other companies as a means of obtaining scientific research and experimental development (SR&ED) investment tax credits (ITCs). However, in many cases, no SR&ED work was conducted by these partners, which meant Read more…
What is the difference between an “audit” and a “review,” and why does it matter in SR&ED? If you have been notified by the Canada Revenue Agency (CRA) that your SR&ED project is being reviewed, you may wonder if your project is actually being audited. The way the terms “audit” Read more…
What is the difference between “learning” and “advancement” when writing for line 246 in the T661? Line 246 of Scientific Research and Experimental Development (SR&ED) Investment Tax Credit (ITC) applications asks “What scientific or technological advancements did you achieve or attempt to achieve as a result of work described in Read more…
What are assistance and contract payments, what is the difference between assistance and contract payments, and how do these affect the distribution of SR&ED? When SR&ED work is completed with the help of outside parties the contract is essential to determine which company is eligible to claim SR&ED for the Read more…
What is a “specified employee” in SR&ED, and how does the understanding of this term impact an SR&ED claim? Small businesses account for just under 98 percent of all firms in Canada,1 and a 2005 survey by Canadian Advanced Technology Alliance (CATA) revealed that 69% of its respondents belonged to Read more…