One of the issues with the Scientific Research and Experimental Development (SR&ED) program is the fact that there is no existing regulation within the SR&ED consultation field. As reported in the Globe and Mail, this has allowed “consulting firms” to make questionable claims on behalf of their clients, which has saddled the CRA with bogus and fraudulent claims which cannot all be audited.
For example, a sales training document obtained by the Globe and Mail from the now-defunct Tripol Management Services, urged its consultants to embellish claims by lifting technical jargon from the Internet for “scientific flavour,” changing employee titles to make them sound more technical and playing with percentages to make them “look more convincing to reviewers.”
According to CRA spokesman Philippe Brideau, “it is important to note that the vast majority of claims are compliant with filing requirements.”
However, without proper checks and balances, how can the few “bad apples” be deterred from repeat offences?
The concept of a certification for SR&ED professionals has been proposed, and currently appears on the Wikipedia article for SR&ED. Regulation in the SR&ED consultation profession would legitimize the program, and create a level playing field for all consultants. The threat of discipline of offenders would be paramount to deterring consultants from filing poor-quality claims.
The biggest question is: will this regulating body be created from within the SR&ED consultation profession (i.e. self-regulation), or will it be mandated and legislated by government?
