SR&ED is the Scientific Research and Experimental Development administered by the Canada Revenue Agency (CRA). The program offers tax incentives in the form of refundable and non-refundable tax credits ranging from 20% to 35% on qualified expenditures. The SR&ED program provides nearly $3 billion in credits to over 24,000 claimants each year.
And, yet an estimated $3 billion goes unclaimed! This is because many of the small and medium sized companies are not aware of the program, or do not think that their activities qualify for R&D funding, or just do not know how to go about it. The refund is available regardless of whether you have paid any taxes.
Resultel Technologies helps companies understand, navigate, prepare, file, and successfully claim SR&ED refundable tax credits. Here's the 10 step process that we use to do it right the first time, and get you maximum benefits:
1. Identify Projects
You provide a very high level view of the key development activities for the fiscal period; we jointly analyze these activities in light of the eligibility guidelines and facilitate identification of projects that have the potential for being eligible for SR & ED refundable tax credits
2. Collect Project Data
We work with you and your team to walkthrough the technical details for the projects identified in Step 1; for each activity, we probe: 'why? why? why?' to identify the technological challenges and systematic investigation conducted to overcome them. We clearly distinguish the technological advancements from project’s business objectives, the latter being of no consequence from SR&ED’s perspective.
3. Develop Draft Technical Write Ups
We develop and draft the technical write-up of the projects; clearly identify technological advancements, challenges, and the work done to overcome them, ensure sufficiency of data and identify any additional information required. We benchmark the technological advancements against the contemporary ‘state of the art’ technologies. This step does not involve any participation from your end as it is accomplished at our facility.
4. Conduct Technical Reviews
We email the draft technical write-ups to you, walk through them with you, incorporate your feedback and finalize the project descriptions. Occasionally, at this point, more sub-projects, or SR&ED activities, may be identified, and repeat of Steps 1 to 3 may be warranted.
5. Prepare Financial Data
We conduct detailed labour analysis, project costs estimation, and preliminary calculations for the SR&ED claim. We review such documents as employees T4’s, supply agreements and contract payments, as part of due diligence to ensure all expenses claimed are justifiable.
6. Conduct Financial Review
We prepare and review financial assertion with you, to ensure we have not missed any important cost factors.
7. Identify Required Supporting Documentation
We help collect supporting documentation; this includes both contemporaneous technical and financial information. Although, most of the claims filed by us are approved without a detailed on-site audit, we ensure projects’ back up details are readily available for a potential audit.
8. Develop CRA Submission
If you have not filed your corporate tax return, we provide the SR&ED claim related information to the accountant and work with him/her to file the claim as part of the filed your corporate tax return. If you have already filed it, we submit the SR&ED claim to the CRA and amend the tax return without any assistance from your accountant.
9. Participate In CRA Audit / Follow Up
We participate in the CRA audit and all SR&ED related meetings to clarify justify and defend the submission
10. Train Your Company For Subsequent Submissions
Finally, we review lessons learned and prepare guidelines for further submissions
We do not actively engage in reviewing previously or currently submitted SR & ED claims, or pursue notice of objection or process appeals for claims prepared by others.
These services are provided both on a flat fee basis and success-based compensation.