On November 5, 2020, Ontario’s 2020 provincial budget was released, Ontario’s Action Plan: Protect, Support, Recover. This budget includes tax supports for struggling businesses and families due to the COVID-19 pandemic and also includes adjustments to some scientific research and experimental development (SR&ED) filing deadlines. 2020 Ontario Budget Overview The focus Read more…
This post outlines SR&ED program updates from July-September 2020, including administrative, policy, tax law, and court cases. COVID-19 continued to dominate the country for the quarter, but slowly things began to reopen. We have identified some key trends to watch in the SR&ED environment. COVID-19 The COVID-19 pandemic has impacted Read more…
Many software companies follow the format for the Plan, Do, Check, Act (PDCA). Unfortunately, this alone does not satisfy the definition of the scientific method. This article looks at PDCA and how a recent ruling was impacted by following this cycle. On July 7, 2020, the Tax Court of Canada Read more…
One question we frequently get asked is: “Can I claim costs for IT (e.g. computer, printer, software, servers etc.) as eligible SR&ED expenses?” Unfortunately, the short answer is no, as IT costs are considered to be capital expenditure, as discussed below. Common IT Costs Capital vs. current expenditures CRA classifies Read more…
Quality Control and Routine Testing are excluded from SR&ED claims because work of this nature does not result in technological advancements. The Eligibility of Work for SR&ED Investment Tax Credits Policy1, lists some exclusions for SR&ED claims. Quality control and routine testing are among those excluded items. This blog post Read more…