By Alex Berlyand, February 12, 2010
One of the greatest triumphs of the SR&ED program (Scientific Research & Experimental Development) for the Canadian economy is the ability to accommodate such a wide range of industries who can apply for a funding opportunity of this kind.
In our 8 years of experience we have been fortunate enough to submit over 900 successful claims on behalf of over 300 Canadian businesses in all sectors of the Canadian economy. From food producers to family print shops, this remarkable incentive program turns valuable for almost any Canadian business owner. The IT industry is a perfect match!
Essentials
The SR&ED program (Scientific Research & Experimental Development) aims to reimburse companies for their experimental development expenses. For over 20 years and with about $4 billion a year in funding, it remains the largest single source of federal funding for R&D in Canada (administered by Canada Revenue Agency). The goal is to make creativity and innovation affordable in the Canadian business environment and foster future development.
A successful claim would illustrate, in detailed technical language, the various SR&ED projects a company participated in. According to Canada Revenue Agency (CRA), a SR&ED project is defined as a set of interrelated activities that:
- Collectively attempt technological advancement, and
- Overcome technological uncertainties, and are
- Pursued through systematic investigation by qualified personnel
Specifics
SR&ED fits naturally in the framework of Software Development & IT business. It is precisely the kind of industry that continues to experiment, undertaking various R&D activities and qualifying those for SR&ED projects. In fact, many members of this industry are already enjoying the benefits of the tax incentive program – we have seen this at the Toronto IT360 trade show in April 2009.
Your business may be a perfect candidate for SR&ED funding without you even knowing. Here is a list of SR&ED eligible activities that apply to the IT industry:
- Developing new or custom software programs
- Resolving which is the best of several possible algorithms, designs, techniques or constructs
- Developing programming languages, operating systems, data management or software development tools
- Improving the performance of a software program
- Reengineering existing software
- Many more...
Your innovative solutions to these obstacles and challenges may certainly qualify your business for SR&ED funding. Furthermore, the program supports your attempts to improve business operations, regardless of success or failure!
Canadian companies may receive funding to cover up to 68% of qualified expenditures. Expenditures include your time, employee labour, materials and equipment. The refund has no strings attached – as a business owner you are free to spend it anyway you like – buy new equipment, attempt new projects, or give everyone a big bonus – the decision is yours!
How we can help?
Submitting a SR&ED claim is a fairly complex and time consuming process. It involves properly identifying eligible activities within your business, associating the appropriate costs to these projects and completing a highly technical report to support the claim.
Using the extensive experience of a professional consultancy like ourselves, business owners have the opportunity to review their potential for qualification, and complete the application process in a few hours, and with no up-front costs. We get paid when you do!
Contact Alex Berlyand at alexb@tripol.ca or call (416) 454 5215 for a free consultation today!
Return to: SR&ED claims related articles
Revised:
February 12, 2010
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