Backlog to SR&ED Reduced Amid Changes (1999)
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At SREDucation, we’re taking the time to document all of the changes that have occurred to the SR&ED program over the years. In our “From the Archives” series, you’ll be able to see how the program has evolved since it’s inception in 1986. For a timeline of these events, check out the SR&ED Tax Credit page on Facebook. Stay current with the program by understanding the historical context.Â
Administrative Changes to Improve SR&ED Backlog Announced
On March 10, 1999, Revenue Minister Herb Dhaliwal announced administrative changes to the SR&ED program while saying that the backlog of claims has been addressed, lessening the jam by about two-thirds.
“Our progress to date shows the strong commitment of my department and the Government of Canada to making the federal incentive program for industrial research and development fair, friendly, and client-centred,” Mr. Dhaliwal stated. “One of my key objectives as Minister of National Revenue is to make sure that this action plan for research and development becomes a reality.”
Changes For Improvement to SR&ED Program
The government announced several changes it was planning to implement to improve the SR&ED program:
- Pre-claim reviews were instituted in six Canadian cities, with the intention of expanding across the country within a year;
- Unspecified joint training began in the aerospace industry, with more industries planned soon;
- Account executives would work directly with “research-intensive companies” in Ottawa and Vancouver;
- A national steering committee would include representation from 11 people in technology industries. The committee was intended to watch over the steps to bringing in the action plan;
- Sector committees were created for 11 industries, ranging from pharmaceuticals to oil to chemicals. The committees are supposed to assist companies with eligibility problems, as well as to help the government figure out how to apply the guidelines for SR&ED reviews;
- Revenue Canada set a target of processing all claims within 120 days, beginning that April;
- An independent SR&ED directorate was established, to separate it from “other tax audit activities.”
This article is based upon a Government of Canada news release issued at the time:Â Federal plan moving ahead to improve incentives for SR&ED