Canadian Institute of Chartered Accountants Weigh in on SR&ED Contingency Fees

According to Gabe Hayos, the Vice President of the Canadian Institute of Chartered Accountants (CICA), the CICA Tax Policy Committee believes that contingency fee arrangements are a vital component of Canada’s SR&ED tax credit system.  Consultants play a valuable role in encouraging taxpayers to participate in the program and increase their investments in innovation.  Gabe explains that many SMEs that do not have sufficient in-house resources are able to participate in the SR&ED program without upfront cash relay, due to third party contingency-based consulting services.  These arrangements also make possible a form of SR&ED financing, which allow SMEs to devote more effort into their innovation and growth.

The Canadian Department of Finance and the CRA are currently consulting Canadians on the use of contingency-related fees for third-party preparers of SR&ED claims.  The government is currently investigating whether third-party contingency fees are diminishing the impact of SR&ED tax credits to Canadian businesses.

CICA is preparing a submission to Finance Canada and the CRA, and Gabe welcomes all CICA members to send him feedback.

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One Response to Canadian Institute of Chartered Accountants Weigh in on SR&ED Contingency Fees

  1. Pingback: Canadian Institute of Chartered Accountants submits SR&ED Contingency Report to CRA | SR&ED / SRED News

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