Canada Revenue Agency (CRA) will be offering free online webinars to assist the public to gain a better understanding of the basic filing requirements of the SR&ED Tax Incentive Program.
Upcoming SR&ED public general information seminars:
Ryan LLC and Export Development Canada (EDC) will be hosting a workshop for agri-food businesses in Canada on Janaury 27, 2014.
Date: Monday, January 27, 2014
Time: 1:30pm to 3:00pm
Location: Ryan LLC, 6775 Financial Drive, Suite 102, Mississauga, Ontario L5N 0A4
Companies who should attend this workshop include those that are:
- Operating in the agricultural or agri-food sector
- Not a retailer/distributor
- Not a start-up
- Manufacturing or conducting R&D in Canada
The results of this year’s PLANT Manufacturers’ Outlook Survey, based on 450 replies from senior manufacturing executives, suggests that manufacturers expect growth to be higher in 2014. Analysts have been predicting modest growth of 2.3% over the next five years.
The highlights of the survey include:
- Companies are getting most of their revenue from Canada (62%) and the US (27%) but business is going up by small steps in other areas such as Western Europe (2.6%) and China (almost 2%).
- Access to financing continues to be the biggest growth constraint, according to 49% of the executives, while 71% intend to finance using internally generated cash flow.
- More companies anticipate hiring over the next three years (58% compared to 54% in 2013), adding new lines of business (43% from 39%), and 33% intend to expand their plants.
- The largest priority for the next three years is investment in machinery and equipment (76%).
- On the innovation front, 32% of companies intend to spend 1% to 3% on R&D, but 27% are not sure what they will spend, and 47% plan to take advantage of the SR&ED tax credit.
The Canada Revenue Agency (CRA) has released the T661(13), which accommodates the legislative changes that will come into effect on January 1, 2014. The old T661(12) version of the form can be used until until December 31, 2013. Starting January 01, 2014, the CRA will accept only the T661(13) version of the form for all tax years.
The following changes have been made:
- Removed lines 223 to 229 in Part 2.
- Removed lines 230 and 232 in Part 2. The relevant information from these lines is now requested on lines 620 and 622 in Part 7.
- Temoved lines 235 to 238 in Part 2.
- Consolidated former Sections B and C in Part 2 so that all claimants answer the same three questions in Section B; Changed the order of the questions in Section B.
- Introduced notes in Parts 3 and 4 to advise that expenditures for capital property or the right to use capital property can no longer be claimed after December 31, 2013.
- Changed the descriptions for lines 350, 355, 390, and 504 to reflect that expenditures for capital property or the right to use capital property can no longer be claimed after December 31, 2013.
- Changed the description for line 820 to accommodate the 10% reduction in the prescribed proxy amount (PPA) for the number of days after December 31, 2013, in the tax year.
- Introduced new Part 9 to capture SR&ED claim preparer information.
- Part 10 is formerly Part 9–Certification.
Pierre Beaudoin, President of Bombardier Inc., delivered a speech to business leaders in Toronto on Wednesday, Nov. 13, as part of the Maclean’s Thought Leadership series. During this speech, he suggested that the taxable income and capital thresholds to qualify for the small business refundable Scientific Research and Experimental Development (SR&ED) tax credit of 35% should be raised to alleviate some of the pressure faced by pioneering SMEs. Beaudoin believes that this would directly benefit the cash- strapped SMEs who have few options for securing the early-stage funding needed to advance their innovative ideas.