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Liberals Drop a SR&ED Surprise

On March 19, the Liberal government announced the details of the 2019 Federal budget. One of the big surprises in the budget was the announcement that the program will be enhanced for CCPC going forward. Buried in the various innovation announcements, the government announced a change to the rules around accessing the 35% enhanced ITC rate for SR&ED. For fiscal years ending after March 31, 2019, the enhanced rate will be accessible to all CCPC regardless of taxable income, but still subject to taxable capital rules. This change is specifically aimed at growing Canadian companies who have exceeded the $800,000 taxable income threshold which previously eliminated access to the enhanced ITC rate. Now companies can continue to scale up their companies without handicapping their ability to generate a profit. This initiative by the government is welcome, as it puts Canadian companies in a stronger position to compete globally and incentivize […]


SR&ED Is Not About Your Product!

Entrepreneur A: “Our mobile application is the first of it’s kind, and saves  people millions of dollars” CRA: “That’s nice, but sorry, your work isn’t eligible” — Entrpreneur B: “Our system was difficult to build, there was no documentation, and it was a  black box” CRA: “Sorry not eligible” — Entrepreneur C: “Our system works faster than our competitors in the field, and it did it in a totally new way” CRA: “Sounds like there might be something, but sorry, not eligible” One of the biggest misconceptions about the SR&ED program is that it is about the products you are developing. While you may be solving problems and use technology to achieve things that were previously not possible, this is actually not what the program is intended to fund. This is easily the biggest problem that entrepreneurs face when describing their work for the purposes of a SR&ED claim. The SR&ED […]