Scientific Research & Experimental Development (SR&ED) Tax Credit Program
DOES YOUR COMPANY:
✅ Develop new or improve upon existing products?
✅ Have to overcome technical problems?
✅ Learn new things about technology regularly?
If you answered “YES” to one of the above questions, your company may qualify for SR&ED Tax Credits.
To assist you, we would be happy to:
- Handle everything, including all preparation, writing, filing and submission of your claim.
- Ensure you leave no money behind, using our propriatary Learning Centric Approach.
- Help you to become compliant, including preparation of necessary documentation.
- Provide full representation with the CRA, we handle all communications with the CRA on your behalf.
- Overturn denied SR&ED claims, in conjunction with Quantum Tax Law.
The Sheldon Group successfully assists qualified companies to receive cash benefits administered by the Canadian Government. We walk you through the entire process and handle all of the necessary elements of filing for SR&ED – from submitting income tax returns and writing technical reports, to submitting your claim and representing your organization with the CRA.
Frequently Asked Questions
The Scientific Research & Experimental Development (SR&ED) Tax Incentive Program began in 1944 with the aim of stimulating the Canadian economy by incentivizing research and development within the country. Rules governing the program are contained in the Canadian Income Tax Act. The only method of applying for the program is through your company’s income tax return.
The Canadian government refunds over three billion dollars every year to approximately 20,000 companies through the SR&ED Program.
Your company must operate within Canada.
Your company must conduct activities that result in an acquisition of knowledge in a specific area of technology.
Your company must have expenses in either of the following two categories:
- Payroll (T4 Salary)
If you meet the above criteria, it is likely you are eligible to benefit from the program.
- Many are surprised to find out that almost every industry in Canada is conducting work that is eligible for SR&ED tax incentives. The definitions in subsection 248(1) of the Income Tax Act are quite broad and do not mention any specific industry. It can therefore be concluded that SR&ED credits are not generally restricted to certain industries or professions.There are however a few exceptions when it comes to qualifying for the program, including the following ineligible activities:
- Market Research
- Research in social sciences or the humanities
- Prospecting, exploring or drilling for, or producing, minerals, petroleum or natural gas
We are a full-service SR&ED firm and we employ a team of technical writers and accountant whose job it is to draft technical reports and prepare SR&ED claims. This means that we can accurately and swiftly take down all the important details of the work you performed from your staff.
You and your staff will write nothing. We do the rest of the work for you.
For most SR&ED claims, the CRA holds itself to a service standard of 90 days. This applies to claims submitted by Canadian Controlled Private Corporations (CCPC). For larger companies or non-Canadian controlled corporations, the service standard is 240 days. According to CRA’s website, this standard is reached on over 90% of claims that are filed with the corporate tax return.