The latest Canada Revenue Agency service standards for April 2012 to September 2012, as reported in CRA’s Annual Report to Parliament, show that the average SR&ED claim takes 109 days to process.
It should be noted that it is advantageous to file refundable SR&ED claims sooner, as opposed to later. Refundable SR&ED claims that are complete and filed on time with the tax return are placed on a fast-track, and take an average of only 63 days to process. On the other hand, refundable claims that are filed late take significantly longer – 146 days on average. This means that filing refundable SR&ED claims on time with your tax filing could increase your cashflow substantially by accelerating your return by 83 days!
Some common reasons why SR&ED claims might be delayed are as follows:
- Incomplete claims
- Not filing SR&ED claims on time with the tax return
- Not responding to the CRA’s request for more information or to the CRA’s proposal letter
- Modifications to a SR&ED claim during a review
