SR&ED Time Limit Extension Proposal due to COVID-19
The Canada Revenue Agency (CRA) recently announced that they have received royal assent for a time limit extension on Scientific Research and Experimental Development (SR&ED) reporting deadlines due to the difficulties imposed by COVID-19.
On August 13, 2020, on the CRA’s What’s New with SR&ED page it was announced that:
Part 3 of Bill C-20, entitled Time Limits and Other Periods Act (COVID-19), recently received royal assent. If the minister of national revenue obtains approval from Parliament (in the form of an order), the SR&ED reporting deadlines will be extended for up to six months starting from March 13, 2020, and not past December 31, 2020.
The CRA reminded individuals, it is important to keep in mind that this order has not been yet issued. Anyone with an SR&ED reporting deadline on or after March 13, 2020, who were unable to file a claim because of COVID-19, are encouraged to file one as soon as they can in anticipation that an order will be released.
This potential order can help taxpayers who found filing their SR&ED claim too difficult due to the limitations imposed by COVID-19. If you fall into this category, please contact your tax advisor or SR&ED consultant to prepare your claim if you have not done so already. We will notify our readers as soon as can when this order is released.
For more information on federal draft legislation amending the Income Tax Act that impacts on the SR&ED Program, go to Federal SR&ED legislative proposals status.