SR&ED funds can go direct to Investigators and does not interfere with other fund sources or have ethics issues. We have crafted strategies to maximize the dollars realized,minimize the effort of assembling claims and avoid unnecessary CRA headaches. Clients care about their after-tax position, as well as cash flow, retirement needs and estate planning. Annual SR&ED rebates can be significant, but need to harmonize with other strategies to give the greatest benefit. Goulet Associates strives to supply one piece of the larger puzzle.

1. 4 Models for Medical Research SR&ED Rebates
The SR&ED (Scientific Research & Experimental Development) program is a long established incentive program
for researchers in Canada. (1) Research by pharmaceutical companies in drug and medical device development is
a long accepted model for research that qualifies for these rebates. There are 3 other models of research
operating in Canada that can qualify for SR&ED incentives. These are Contract Research Organizations, Medical
Professional Corporations and Non-profits.
(2) Contract Research Organizations (CRO) are simply specialized outsources that carry out clinical trials and other
research activities on behalf of pharmaceutical and medical device companies. Since the CROs are paid to do the
work, the qualifying SR&ED claimant is usually their customer rather than the CRO itself. However there are cases
where the customer is not a Canadian taxpayer, or where the CRO defines its own study. In such cases the CRO
has expenses that it is qualified to claim.
(3) Another category of researcher that is often overlooked is the individual scientist's Professional Corporation.
It is normal practice in academe that Principal Investigators (PI) and Co-Investigators (Co-I) are not financially
compensated so as to avoid biasing the study findings. Thus, the PI and Co-I will conceive the study, create a
study hypothesis and research methodology, secure funding, manage the data collection, analyze the data and
finally, publish - all without financial compensation. Study funding from CIHR or pharma will go to pay for
Research Co-ordinators, nurses and overheads. The PI/Co-I devotes their own time to research without pay,
meanwhile generating income from clinical services. With a Professional Corporation, there is a basis for claiming
the value of their research time.
(4) Medical researchers often form groups along specialty lines to collaborate on multi-centre and multi-year
studies. Most often these are non-profit groups, and they seek streams of external funds to support the
researchs. The most common sources are clinical trials supported by pharma or government bodies such as CIHR.
These groups are focused on their research mission and their non-profit status reflects their lack of profit motive.
However many costs are not funded by a Canadian taxpayer, and there is potential for SR&ED rebates to extend
the financial resources for their research mission. This potential often goes unnoticed. Also the non-profit society
has no profits against which to apply the credits. These obstacles can be overcome with appropriate legal and
financial structures.
Maurice Goulet
September, 2013
Tel/Fax: 1.888.477.3373
GouletAssociates.com