Collins Barrow Toronto has launched its Scientific Research and Experimental Development (SR&ED) tax recovery practice. Led by the firm’s newest director, Dale Wilson, the group is comprised of senior industrial engineering specialists and specialized tax accountants working to ensure companies maximize investment tax credit benefits.
“When properly applied, the SR&ED program can result in substantial tax savings, however many often do not realize optimal benefits or realize that they have activities that qualify. Eligible private companies can receive over 50% of their qualifying expenditures as a cash refund and larger private and public companies can receive over 30% of their qualifying expenditures as a tax credit,” says Enzo Testa, Senior Tax Partner. “Bringing this calibre of specialized expertise in-house ensures that our clients are well supported as they continue to spur innovation in some of the country’s key industries.”
Canada Revenue Agency will be hosting 2 pilot webinars on the SR&ED program. These free public online interactive webinars will provide a general overview of the Program, explaining the eligibility criteria, what expenditures qualify, and how to file a Scientific Research and Experimental Development (SR&ED) claim.
Upcoming webinar dates and times are as follows:
The CRA website has been updated with the complete Claim Review Manual (CRM) for Research and Technology Advisors. The new CRM cancels and replaces The Guide to Conducting a Scientific Research and Experimental Development (SR&ED) Review and Directive 2004-03 SR&ED Reports and is effective June 1, 2010.
As of January 1, 2014, Part 9 of the Form T661 (13) for SR&ED must be completed with details about the claim preparer(s) involved. If any of the prescribed claim preparer information is missing, incomplete or inaccurate, a penalty of $1,000 may be assessed.
An optional T661 (13) filing measure has been introduced by the CRA. There are now two options available:
- Complete T661 (13) Parts 1-10 in its entirety, or
- Use the optional filing measure to file details about the billing arrangements separately
- Check the appropriate box at line 935 attesting to whether a claim preparer was engaged in any aspect of the preparation of the claim;
- Provide the name of each claim preparer – line 940;
- Provide each claim preparer’s business number – line 945;
- Certify that the information provided in this part is complete and accurate – line 970;
- Sign and date Part 9 – line 975.
- Omit the billing arrangement code, billing rate, other billing arrangement(s) or the total fee paid, payable or expected to pay – lines 950, 955, 960 and 965 respectively.
- Submit a separate paper copy of the T661(13), completing only Part 1 – General Information, and Part 9 – Claim preparer information. Do not resubmit Parts 2 through 8 or Part 10 of the T661(13).
Toronto is the best place in Canada to build a startup, and the 8th-best place in the world, according to Genome’s Startup Ecosystem Report.
The Canadian and provincial (Ontario) governments provide startups with substantial R&D funding from IRAP and SR&ED. In addition, FedDev Ontario and the Ontario Centers of Excellence also provide a wide range of stimulus programs for startups.
On an international scale, Canada has topped world rankings in the latest OECD study for the highest proportion of college-educated adult residents, and Toronto has a disproportionate number of these individuals working in the science, technology, education, mathematics and financial sectors. University-based incubators and accelerators such as UTEST (University of Toronto), Communitech Hyperdrive (University of Waterloo), and Ryerson DMZ (Ryerson University) are great breeding grounds for tech entrepreneurs looking for mentorship, community and resources to bring their ideas to market.