Help With Your Research and Development Tax Credit (SR&ED)
The Scientific Research and Experimental Development tax credit
or SR&ED is an incentive program of the federal government
of Canada that is enshrined in law in the Income Tax Act.
The SR&ED credit happens, by tradition, to be administered
through the Canada Revenue Agency. Its administration (and
the law itself) has been splashed with a colorful history
but suffice to say that the SR&ED credit is highly complex
and fraught with pitfalls. TSGI specializes in providing tax
credit help with this program; it is often not a simple matter
to be undertaken without experience or outside expertise to
draw upon. While the tax credit application form may appear
to be relatively simple, layers of nuance lie underneath and
many thousands of tax credit dollars may be lost because of
a small gap in knowledge. TSGI typically expends many hours
building the foundations for your SR&ED application, all
with your success in mind.
Working At Your Side to Maximize
Your Research and Development Tax Credit
Our first step with your company is to identify the claiming
entity and whether the work thought to be eligible is still
available to be claimed within the time constraints of the
SR&ED program. Then we carry out a screening assessment
of the work as to whether it meets the criteria, followed
by a more detailed assessment refining the scope of the work
that should be captured within the claim. Please see and
to see more about how we work with you to access the SR&ED
tax incentive. Canadian-Controlled Private Corporations (CCPCs)
earn a refundable (i.e. cash) investment tax credit (ITC)
of 35% up to the first $2 million of SR&ED expenditures
in Canada, and a non-refundable 20% on any amount over $2
million. Other Canadian corporations can earn a 20% non-refundable
ITC (i.e. offset against taxes otherwise owing). Even if an
entity is not currently paying tax, the realization of the
SR&ED tax credit is intended to be of eventual benefit
through an ample 20-year carry-forward timeframe. In this
situation, (i.e. the credit is not an immediate cash value
to your company), a potential merger or acquisition down the
road could be sweetened substantially by the presence of a
research and development tax credit waiting in the wings.
TSGI will advise you, up-front, on how this could be of benefit
to you.
For information on the timelines of applying for and receiving
funds, please see .
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