When the CRA Calls About Your SR&ED Claim

Oftentimes when the CRA is reviewing an SR&ED claim, a reviewer will call the claimant either to get more information or set up an onsite visit. CRA reviewers will often re-assure the claimant that nothing is wrong at this stage, and they are simply gathering information. This is not entirely accurate, and as a claimant you should be concerned. If a CRA reviewer calls you about your SR&ED claim, it means that the claim has been selected for review. At this stage it is unlikely that the CRA will tell you whether you are subject to a desk, onsite technical or financial review. Consequently, it is important to make sure you plan to set aside some time to answer any queries the CRA reviewer(s) may have in regards to your claim. Here are some simple things you can do to help organize the process and determine who and how much time will […]

Innovation and the 2016 Federal Budget – Synopsis

The 2016 by the Liberal government has enacted new provisions for innovation and green technology. This government has re-emphasized that innovation is a key driver of the economy, and must invest in order to become and world leader in technology creation. To achieve this objective, the government has targeted investment to 4 specific streams to boost innovation. Entrepreneurship – Extended investment through enhanced funding for incubators and accelerators, internships, apprenticeships and immigration policy. By 2017-18, the government has promised to provide funding of $150 million dollars. Science and Technology – Increasing funding for academia, federal laboratories and related foundations. Aggregate funding between 2016-18 will increase funding by approximately $1.75 billion dollars. Innovation Infrastructure – Increased funding to the NRC – IRAP and development agencies across Canada. IRAP in particular is earmarked to receive an additional $50 million dollars in 2016-17. Commercialization and Growth – Scaling the mandates of BDC, EDC […]

Can a SR&ED Claim Be Retroactively Reviewed?

The majority of SR&ED claims submitted are accepted without being subjected to a detailed review. In these cases, the claim is considered “accepted as filed”. When this occurs, the CRA will send out a letter stating that the claim was accepted, but no determination was made about the eligibility of the work, but that they are accepted the claim in good faith. Typically once an SR&ED claim has been accepted as filed, it is not subject to reviews retroactively. This means that if you file a claim in the next fiscal year which may be a continuation of previous work and is rejected, in our experience it will not trigger a review of a claim previously submitted. With that said, the CRA has outlined several instances where a SR&ED claim that was was previously accepted as filed may be sent back for re-assessment (i.e. reviewed and possibly reduced or rejected). […]