This document provides information about time tracking requirements for SR&ED (Scientific Research and Experimental Development) tax credit claims in Canada. It outlines who is eligible to claim SR&ED tax credits, including Canadian Controlled Private Corporations and Small or Medium sized businesses. The document stresses the importance of thorough documentation of time spent, technical problems addressed, and project expenditures in order to support a successful SR&ED tax credit claim. It provides examples of time tracking tools and issue tracking tools that can help with the documentation requirements.

1. Time Tracking for
SR&ED Claims 101
October 23, 2014
In Partnership with Launch Academy

2. WHO WE ARE
 Engineers and financial professionals
 Technology-first approach to SR&ED
 Professional Services Firm of the Year

3. SR&ED ELIGIBILITY

4. WHO CAN CLAIM?
 CCPC = Canadian Controlled Private
Corporations
 Non-CCPC = Foreign or Publically
Owned Corporations
 Partnerships

5. CCPC AND SME
 SME = Small to medium sized enterprise generating less
than $500K in taxable net income in the prior fiscal year
 ICTs are refundable ($$$)
* Salaries and sub-contractors MUST be Canadian tax payers

6. THE DO’S AND DON’TS
Do’s for Companies:
 Pay yourself and staff
 Start time tracking and proper
documentation now
 Incorporate your company and
ensure clear IP ownership

7. THE DO’S AND DON’TS
Don’ts for Companies:
 Underestimate the importance
of documentation
 Focus on the business
opportunity
 Leave your SR&ED claim until
the last minute

8. CRA REVIEWS
CRA Review ≠ Tax Audit
Multiple types of CRA Reviews:
 First Time Claimant Advisory Service (FTCAS)
 Desktop
 Financial
 Technical & Financial

9. DOCUMENTATION - TECH
 Documented at the
time the work was
completed
 Technical obstacles
or challenges
 Dated

10. DOCUMENTATION - TIME

11. TIME TRACKING
Key Points for Tracking
 Granularity of time
 Normalizing your hours
 Self-limiting descriptions /
estimates
 Supporting activity vs directly
engaged

12. TIME TRACKING TOOLS
 Replicon (http://www.replicon.com/)
 Greenhopper (http://www.atlassian.com//)
 VersionOne (http://www.versionone.com/)
 Basecamp (http://basecamphq.com/)
 Harvest (http://www.getharvest.com/)
 BillQuick (www.bqe.com)
 Tenrox (www.tenrox.com)

13. ISSUE TRACKING TOOLS
 GitHub
 Assembla
 Bugzilla
 FogBugz
 JIRA
 Redmine

14. DOCUMENTATION - $$$

15. EXPENDITURES
Types of Payroll:
 T4 wages / part-time
 Contractor payments / invoices
 Cancelled cheques / proof of
payment
 Income tax treatment
 Dividends / shares / sweat
equity

16. HOW WE WORK
 Contingent
 Scope your claim upfront and invoice when your claim is
successful
 Efficient
 Only require interviews & documentation
 Proactive
 Ongoing engagement and future recommendations

17. WHY WORK WITH US
 Highly reputable
 Technology-focused
 Efficient
 Well-connected

18. JAMES SUK
PARTNER
604 779 7770| jsuk@boastcapital.com
BoastCapital.com | @BoastCapital | @jimmyzook
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