Lines 218/220/221: Joint and Collaborative SR&ED Work

November 27, 2019 Talar Stockton

Updated to Reflect New Policies (2022)

* Some of the policies referenced were updated 2021-08-13. This article has been updated and is accurate as of 2022. *

The Canada Revenue Agency’s Scientific Research and Experimental Development Tax Credit program requires you to fill out an application regarding your claimed project so you can receive your tax credit. While other sections of the SR&ED application ask you to explain your project in-depth, Section A requires simple answers to contextualize your project. This post outlines one section that is occasionally confusing.

Joint and Collaborative SR&ED Work

In Section A, Line 218, Line 220 and Line 221 require you to list the details of the other businesses which you worked with when performing the SR&ED project. These lines are different than the T5013-FIN partnership form of the SR&ED program.

If you performed SR&ED in a partnership, the information about the businesses you were partners with should be entered in Lines 151 to 157 in Section 1 of the T661 form.¹

Line 218: Work Done Jointly or in Collaboration With Other Businesses

Line 218 asks if any of the work on the claimed project was “done jointly or in collaboration with other businesses”.² Line 218 is a question which you may answer yes or no to: “only if you responded yes at line 218″ will you fill out Line 220 and Line 221.³

If any “work was done as a joint effort, with or without a formal agreement” over the duration of your claimed SR&ED project, your answer to Line 218 should be “yes.” ⁴

Line 218 is separate from information regarding the labour accessed from contractors during your claimed SR&ED project. Information regarding contractors who “performed some or all of the work” will be applied in Line 267 to Line 269.⁵ Likewise, if you were contracted by another party to “perform SR&ED work on their behalf” do not answer “yes” to Line 218.⁶ Information regarding your work as a contractor should be entered at Line 266.⁷ A SR&ED contract is a “contract for basic research, applied research or experimental development, or support work performed on behalf of a claimant”.⁸ Note that a contractor who performed “SR&ED work is not eligible to claim their work if they are carrying out work identified as support work only”.⁹

Line 220 and Line 221: Names and business numbers, please!

As mentioned previously, your answer to Line 220 depends on your answer to Line 218. If you answered yes to Line 218 you must fill out Line 220. In Line 220, you simply list “the names of the businesses that performed SR&ED work jointly or in collaboration with you.”¹⁰

In Line 221, the CRA requests that you enter the businesses’ “corresponding business numbers (BNs)” if you have them.¹¹

Summary: Joint and Collaborative SR&ED Work

Lines 218, 220 and 221, like the rest of your SR&ED application, will require you to exercise good judgment and be clear. Luckily, being clear is not optional with yes/no questions. Understand the question asked and pay attention to who is a collaborator and who is not.