billion billion
SR&ED EV VE ER RY Y TT H H II N NG G Y YO OU U N NE EE ED D TT O O K KN NO OW W A AB BO OU U TT E
TA X C R E D I T S
W H AT A R E S R & E D TA X C R E D I T S ?
SR&ED =
SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT
S-H-R-E-D
Canadian Research and Development Tax Credit
95%
Commonly pronounced
Approximately 95% of SR&ED
“SHRED”
claims are considered Experimental Development
$3.4 BILLION
IN 2013 The Canadian government provided $3.4B in assistance to 22,000 claimants.
SR&ED tax incentives = investment tax credits (itcs) WHO CAN CLAIM SR&ED?
3 W AY S T O I D E N T I F Y S R & E D E L I G I B I L I T Y
Technological Advancement
Technological Uncertainty
Technical Content
Technology, characteristic, or capability does not currently exist and is not readily available in standard practice.
A qualified person overcame challenges and could not predict the outcome with their existing knowledge.
The work was performed in a systematic or iterative process with documentation.
APPLICABLE INDUSTRIES Software Development & ICT
Manufacturing
Oil & Gas and Energy
Agriculture
Bio Technology
and more
ETC
W H AT C A N Y O U C L A I M ?
T Y P E S O F C O M PA N I E S T H AT C A N C L A I M
CCPC Canadian Controlled Private Corporation
NON-CCPC Foreign and/or Publicly Owned Corporation
SME = small-medium sized enterprise generating less than $500K of taxable net income in the prior fiscal year
RECOVERABLE AMOUNTS ON QUALIFYING EXPENDITURES CCPC AND SME
SALARIES
SUB-CONTRACTORS
~64%
MATERIALS
~32%
~42%
REFUNDABLE ITCS
NON-CCPC OR LARGE CCPC
SALARIES
SUB-CONTRACTORS
MATERIALS
~18%
~36%
~24%
NON-REFUNDABLE ITCS
DID YOU KNOW Unused non-refundable ITCs may be carried back three years or carried forward indefinitely.
CASE EXAMPLE
SR&ED’S IMPACT ON YOUR BOTTOM LINE Company X has
~$210K/YEAR
of eligible SR&ED expenditures.
Claiming SR&ED, the company can earn
~$135K OF REFUNDABLE ITCS/YEAR
THAT’S THE EQUIVALENT OF 2 EMPLOYEES T H AT ' S $ 4 0 5 K O F I T C S I N J U S T 3 Y E A R S ! *ITC calculation based on: CCPC in Alberta (10% provincial rate); 2014 fiscal year expenditures; spent 100% of time on R&D (64% recoverable amount for salaries)
WHEN SHOULD YOU CLAIM?
TURNAROUND TIMES DEADLINE TO CLAIM SR&ED = 18 MONTHS PAST FISCAL YEAR END
CURRENT FILING
AMENDED FILING
Filed within
Filed within
6 MONTHS OF FISCAL YEAR END
7-18 MONTHS OF FISCAL YEAR END
CCPC ONLY
CCPC ONLY
NON-CCPC
4 MONTHS
8 MONTHS
12 MONTHS
(120 days)
(240 days)
(365 days)
DID YOU KNOW
The CRA only took
68 DAYS
on average, to process current claims in 2013!
96%
CRA’s success at meeting these turnaround times
W H AT S H O U L D Y O U D O C U M E N T ? S R & E D C L A I M D O C U M E N TAT I O N S H O U L D B E TIMESHEET TIMESHEET TIMESHEET
Contemporaneous Highlight technological obstacles /challenges
RING ENGINEEKS BOO
Dated
RECOVER YOUR R&D COSTS
Boast Capital is a team of engineers and finance professionals with over 20 years experience helping companies in Canada and the U.S. successfully claim and maximize R&D tax credits.
WHY WORK WITH US?
www.BoastCapital.com
Highly Reputable
Efficient
Technology Focused
Well Connected
CONTACT US FOR A FREE SR&ED ASSESSMENT: [email protected] www.boastcapital.com | 1-800-290-5672 | @BoastCapital
RESOURCES: CRA SR&ED Program: http://www.cra-arc.gc.ca/txcrdt/sred-rsde/menu-eng.html CRA SR&ED Service Standards: http://www.cra-arc.gc.ca/txcrdt/sred-rsde/srvc_stds-eng.html CRA Provincial & Territory R&D Tax Credit Breakdown: http://www.cra-arc.gc.ca/txcrdt/sred-rsde/prv-crdts-eng.html#lbrt
TA X C R E D I T S
W H AT A R E S R & E D TA X C R E D I T S ?
SR&ED =
SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT
S-H-R-E-D
Canadian Research and Development Tax Credit
95%
Commonly pronounced
Approximately 95% of SR&ED
“SHRED”
claims are considered Experimental Development
$3.4 BILLION
IN 2013 The Canadian government provided $3.4B in assistance to 22,000 claimants.
SR&ED tax incentives = investment tax credits (itcs) WHO CAN CLAIM SR&ED?
3 W AY S T O I D E N T I F Y S R & E D E L I G I B I L I T Y
Technological Advancement
Technological Uncertainty
Technical Content
Technology, characteristic, or capability does not currently exist and is not readily available in standard practice.
A qualified person overcame challenges and could not predict the outcome with their existing knowledge.
The work was performed in a systematic or iterative process with documentation.
APPLICABLE INDUSTRIES Software Development & ICT
Manufacturing
Oil & Gas and Energy
Agriculture
Bio Technology
and more
ETC
W H AT C A N Y O U C L A I M ?
T Y P E S O F C O M PA N I E S T H AT C A N C L A I M
CCPC Canadian Controlled Private Corporation
NON-CCPC Foreign and/or Publicly Owned Corporation
SME = small-medium sized enterprise generating less than $500K of taxable net income in the prior fiscal year
RECOVERABLE AMOUNTS ON QUALIFYING EXPENDITURES CCPC AND SME
SALARIES
SUB-CONTRACTORS
~64%
MATERIALS
~32%
~42%
REFUNDABLE ITCS
NON-CCPC OR LARGE CCPC
SALARIES
SUB-CONTRACTORS
MATERIALS
~18%
~36%
~24%
NON-REFUNDABLE ITCS
DID YOU KNOW Unused non-refundable ITCs may be carried back three years or carried forward indefinitely.
CASE EXAMPLE
SR&ED’S IMPACT ON YOUR BOTTOM LINE Company X has
~$210K/YEAR
of eligible SR&ED expenditures.
Claiming SR&ED, the company can earn
~$135K OF REFUNDABLE ITCS/YEAR
THAT’S THE EQUIVALENT OF 2 EMPLOYEES T H AT ' S $ 4 0 5 K O F I T C S I N J U S T 3 Y E A R S ! *ITC calculation based on: CCPC in Alberta (10% provincial rate); 2014 fiscal year expenditures; spent 100% of time on R&D (64% recoverable amount for salaries)
WHEN SHOULD YOU CLAIM?
TURNAROUND TIMES DEADLINE TO CLAIM SR&ED = 18 MONTHS PAST FISCAL YEAR END
CURRENT FILING
AMENDED FILING
Filed within
Filed within
6 MONTHS OF FISCAL YEAR END
7-18 MONTHS OF FISCAL YEAR END
CCPC ONLY
CCPC ONLY
NON-CCPC
4 MONTHS
8 MONTHS
12 MONTHS
(120 days)
(240 days)
(365 days)
DID YOU KNOW
The CRA only took
68 DAYS
on average, to process current claims in 2013!
96%
CRA’s success at meeting these turnaround times
W H AT S H O U L D Y O U D O C U M E N T ? S R & E D C L A I M D O C U M E N TAT I O N S H O U L D B E TIMESHEET TIMESHEET TIMESHEET
Contemporaneous Highlight technological obstacles /challenges
RING ENGINEEKS BOO
Dated
RECOVER YOUR R&D COSTS
Boast Capital is a team of engineers and finance professionals with over 20 years experience helping companies in Canada and the U.S. successfully claim and maximize R&D tax credits.
WHY WORK WITH US?
www.BoastCapital.com
Highly Reputable
Efficient
Technology Focused
Well Connected
CONTACT US FOR A FREE SR&ED ASSESSMENT: [email protected] www.boastcapital.com | 1-800-290-5672 | @BoastCapital
RESOURCES: CRA SR&ED Program: http://www.cra-arc.gc.ca/txcrdt/sred-rsde/menu-eng.html CRA SR&ED Service Standards: http://www.cra-arc.gc.ca/txcrdt/sred-rsde/srvc_stds-eng.html CRA Provincial & Territory R&D Tax Credit Breakdown: http://www.cra-arc.gc.ca/txcrdt/sred-rsde/prv-crdts-eng.html#lbrt
