SREDucation Participates in TMX Innovation Investment Roundtable – April 2024
On Tuesday, April 2, 2024, TMX Group hosted a roundtable discussion on The Scientific Research and Experimental Development (SR&ED) Tax Incentive Program, a nearly $4 billion tax incentive program for Canadian companies that conduct SR&ED in Canada. Stakeholders, including leaders from TSXV-listed companies, joined John McKenzie, CEO, TMX Group, and Ryan Turnbull, MP (Whitby), Parliamentary Secretary to the Minister of Innovation, providing input on how this program could more effectively encourage R&D that benefits Canada.
Elizabeth Lance, Managing Director of InGenuity Group and Managing Editor of SR&ED Education and Resources was invited to participate in this event, providing her expertise and insights into the program gleaned from a decade of deep research.
“Companies should not be penalized for being successful…”
The timing of our participation in this discussion is auspicious, given the looming deadline for CRA’s Consultation on SR&ED – April 15, 2024. We’ve highlighted in recent articles our support of TMX’s position on Small Medium Enterprises (SMEs) accessing SR&ED regardless of whether they are publicly or privately controlled, as well as some of our criticism of positions that confuse the international standard for SR&ED definitions and overall purpose of the program.
Other participants in the roundtable included:
- John McKenzie, CEO of TMX Group
- Ryan Turnbull, Member of Parliament and Parliamentary Secretary to the Minister of Innovation, Science and Industry
- Dana O’Born, Council of Canadian Innovators
- Bryan Watson, CleanTech North
- Bob MacBean, Environmental Waste International
- Galen Cranston, CHAR Technologies
- Audrey Mascarenhas, Questor Technology
- Catherine McIntyre, The Logic (moderator)
Ms. Lance’s key contributions and takeaways are succinct and reflect the values InGenuity Group and SR&ED Education and Resources has long espoused:
We want to encourage and see more of in the name of keeping intellectual property (IP) and SR&ED dollars in Canada. Overall, SR&ED needs to be more accessible, especially for those companies with a proven track record for success. Companies should not be penalized for being successful. So long as they are contributing to Canada’s prosperity, the government should consider how to support their contributions.
There’s still time to have your say!
Feedback is being solicited by the CRA from all Canadians and stakeholders, including innovative businesses conducting R&D in Canada, advocacy groups, research organizations, academics, and tax practitioners. Responses are being collected until April 15, 2024, and can be provided directly via:
Email: SRED-PB-RSDE-RPB@fin.gc.ca with “SR&ED Review” as the subject line for consultations on SR&ED or “Patent Box” as the subject line for consultation on the suitability of a patent box regime.
Mail: Director General
Business Income Tax Division
Tax Policy Branch
Department of Finance Canada
90 Elgin Street
Ottawa ON K1A 0G5