On October 31, 2013, the Canada Revenue Agency (CRA) revised the T4088 Scientific Research and Experimental Development (SR&ED) Expenditures Claim – Guide to Form T661 to reflect the changes to Form T661.
What’s new for the T4088 SR&ED Guide?
Below is the summary of changes made to Form T4088 so as to reflect the following changes to Form T661:
- Lines 223 to 229 in Part 2 were removed.
- Lines 230 to 232 in Part 2 were removed; the information required therein is now requested on lines 620 and 622 in Part 7.
- Lines 235 to 238 in Part 2 were removed.
- Sections B and C were consolidated so that all claimants answer the same questions in Section B. The order of these questions was also changed.
- Notes were added in Parts 3 and 4 to reflect that expenditures for capital property – or the right to use capital property – can no longer be claimed after December 31, 2013. Specifically, 350, 355, 390, and 504 were updated to reflect these changes.
- The description for line 820 was changed to accommodate the 10% reduction in the prescribed proxy amount (PPA) for the number of days after December 31, 2013, in the tax year.
- A new Part 9 was introduced to capture SRED claim preparer information. This must be completed for claims filed on or after January 1, 2014 or the day on which the enacting legislation received royal assent – whichever date is later.
- The former Part 9 – Certification is now Part 10.
- The line descriptions throughout the guide were also revised to ensure consistency of the content with SRED policy papers.
- Lastly, a new formula to calculate the PPA was introduced at line 820.