Technology developers considering SR&ED (Scientific Research & Experimental Development) tax credits to offset research expenses will be interested to hear about CRA’s latest initiative for educating new applicants to this program. The FTCAS process was introduced at a recent SR&ED Practitioner meeting called by CRA. At this time it is a pilot program for all first time claims submitted to CRA between January 1, 2014 and March 31, 2014.

1. FTCAS – First Time Claim Advisory Service
Technology developers considering SR&ED (Scientific Research & Experimental Development) tax credits to offset
research expenses will be interested to hear about CRA’s latest initiative for educating new applicants to this
program. The FTCAS process was introduced at a recent SR&ED Practitioner meeting called by CRA. At this time it
is a pilot program for all first time claims submitted to CRA between January 1, 2014 and March 31, 2014.
Here are some highlights:
The claimant and preparer attend a mandatory meeting with CRA. The claim will not be approved without having
the meeting.
No preparation for the meeting is required by the claimant.
In the 2 hour meeting the CRA Reviewers will do 2 things:
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Educate the claimant about criteria for eligible projects, eligible research activities and the types of
support documentation that is required.
Give recommendations for the next claim.
Implications of this are:
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All new claimants will be subject to this anxiety provoking process.
First claims will incur a delay with the FTCAS process. However, for some, eliminating the steps of
supplying additional information will result in a much shorter time to refund outcome.
CRA will expect best practices in record keeping in future claims.
The claim will be accepted as filed.
The next claim may be reviewed with the emphasis on the recommendations made at the FTCAS meeting.
From our experience, the meeting was successful. Our client was engaged in the discussion and received relevant
information that will assist in future claims. From the preparer’s perspective, it reinforced our requests for
documentation and appropriate record keeping going forward. This could be positive for future claims.
We would appreciate your feedback if you have experienced the FTCAS program.
Maurice Goulet
March, 2014
Tel/Fax: 1.888.477.3373
GouletAssociates.com