SR&ED Still Complex Program That Requires Engineering Consultation

The recent 2012 federal budget has eliminated the capital portion of expenditures, and reduced contract payment eligibility from the SR&ED program. Brian Leve of Grant Thornton LLP suggests that the introduction of phased-in rate changes increases the complexity of calculations for applicants, which runs contrary to the recommendation in the Jenkins Report to simplify the program. Furthermore, the application process involves the writing of extremely technical narratives, which adds an extra level of complexity to the program. “It’s a very complex legislation and you need engineers or engineering equivalents to be able to understand and write those narratives and that hasn’t changed.”

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