SR&ED Payments and COVID-19

SR&ED Payments and COVID-19

COVID-19 has impacted everyone around the world and has created disruption in SR&ED payments and claims. We are here to update you with information on how your claims may be impacted.

SR&ED Payments and COVID-19 in the news

In a recent news article on Betakit.com, “SR&ED PAYMENTS BEGINNING TO FLOW TO CANADIAN TECH FOLLOWING DELAY CAUSED BY COVID-19“, it has been reported that a backlog of SR&ED tax credits are beginning to be released to taxpayers.

When the COVID-19 crisis hit and many companies and the CRA were forced to begin working from home a backlog of nearly $200 million in SR&ED investment tax credits was delayed.  Companies that were waiting for an audit had their funds withheld.  When the CRA had to begin working from home in March, they did not have the infrastructure to process the audits which led to the backlog.

According to the article:

The CRA reportedly told The Globe and Mail Sunday that it is now able to handle requests from SR&ED claimants.

A CRA spokesperson told The Globe the agency paid out $13.4 million in claims between March 30 and April 7, which decreased the backlog from $195.2 million to $181.8 million. That spokesperson also said there are now 1,600 SR&ED claims under review.

CRA’s message on COVID-19

This message can be found on the CRA’s website:

We are closely monitoring the COVID-19 situation and we will continue to adapt as new information becomes available. The Scientific Research and Experimental Development Program is doing everything it can to ensure claimants receive the credits to which they are entitled, as soon as possible. For the time being, no new reviews/audits will be started and existing reviews/audits will be completed as soon as possible so that businesses have access to their credits faster. Most refundable claims will be processed as soon as possible with minimal burden on the claimant. Claims accepted at this time may be subject to review/audit at a future date to ensure eligibility.

For more information on tax and benefits measures to help support Canadians during the COVID-19 pandemic, go to Changes to taxes and benefits: CRA and COVID-19.

We here at the SR&ED Education and Resources will continue to monitor the situation and provide updates on SR&ED and COVID-19 as soon as we can.

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