OIDMTC


SR&ED Advice: Do Your Due Diligence!

On February 6, 2011, the Globe and Mail published an article entitled, “Dubious claims diminish R&D tax credit”. As is evident form its title, the article talks about abuse of SR&ED program and calls for action. In particular, the author, points to a “flood of dubious claims” that “is bogging down an already complex and unpredictable application process.” Unfortunately, the abuse of the program is a sad reality. We have seen it both from a consultant as well as from a claimant side. The CRA is acknowledging the problem and is contemplating various measures to counter them. The SR&ED program is fundamental to keeping highly skilled technologists in Canada, and it would be a grave political mistake to scrap it. Therefore the CRA’s response to the problem will likely come in a form of further enforcing compliance aspects of the program and subjecting more SR&ED claims to greater scrutiny. It […]