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Government’s COVID-19 Economic Response Plan   Recently updated !

As a result of COVID-19, the Federal Government enacted a series of short-term measures to assist businesses with the effects of this pandemic. Here are some clarifications to these measures as well as the information on how to apply for them. Whether you are an existing client or have general questions about these measures, please contact us. Grants This is the single most popular topic we have received questions about over the last 10 days. For the majority of companies, this stems from the need for short term financing and mitigation of cancelled or delayed contracts (particularly for B2B companies). Sadly, the federal government has been quiet on this front.  The government has not requested any mandate changes from organizations, other than to expedite COVID-19 related R&D. We suspect this may change in the near future. Most active grants available at the moment require co-investment from accredited investors, taking on […]


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 […]


Subcontractors and SR&ED ‘Loopholes’

Subcontractors who are Canadian (i.e. companies operating in Canada), or individuals in Canada hired on a subcontract basis and are performing SR&ED eligible work, can be claimed under the program. The difference between subcontractors and employees is simply the refund rate. Through the program, a higher return rate is applied to salaried employees versus subcontractors. There is another scenario involving subcontractors that people mistakenly think is a loophole to be exploited. In some cases, a company will hire a Canadian subcontractor (typically a company) to perform some SR&ED eligible development on their behalf. The Canadian subcontractor then outsources this work offshore. Some outsourcing companies present this as a way to win business as they can lower their costs to the client, while still allowing the client to claim SR&ED on their work. In fact, this is not a loophole, and is something that the CRA accounted for long ago. Through a directive, that […]