The document discusses Canada's Scientific Research and Experimental Development (SR&ED) tax credit program. It offers tax credits worth up to 35% of qualified expenditures to encourage innovation. Eligible work includes research, experimental development, and supporting activities in science and technology. The program is claimed retrospectively through the tax system. Firms should describe their work's technological challenges and advancements to avoid audit. Altrui Consulting can help assess eligibility, write reports, optimize costs, file claims, and represent clients in audits to maximize SR&ED tax credits.

1. Helping Maximize
SR&ED Tax Claims

2. SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT
(SR&ED)

3. What is SR&ED PROGRAM ?
● Canada’s largest single program for providing assistance for
industrial R&D performed in Canada.
● Approximately $3 Billion distributed annually in the form of tax
credits (ITC) among 16,000 SR&ED performers.
● The program is an government’s initiative to propel innovation and
drive excellence within the engineering community.

4. What does the program offer ?
For Canadian Controlled Private Corporations:
● 35% of:
○ Qualifying salaries
○ Materials
○ Payments to contractors
○ Capital cost
○ Overhead expenses or “proxy” in lieu, which
Increases salary amounts by 65%
● Payment is “refundable”.
● Plus Ontario tax credit - another 10 %
● For larger companies the rate is 20% of and the support is a credit against taxes.

5. CLAIM TIME FRAME ?
● Work is claimed retrospectively.
● Earliest possible filing date is with the tax return for
the year the work was done.
● Latest possible filing date is 18 months after end of
Fiscal period when the work was done.
● CRA’s service standard is 120 days for claims filed with the
T2 and 240 days otherwise.
● The actual waiting period till a cheque arrives depends on how
Well the claim is received - could be less than 120 days or much
More.

6. WHAT WORK QUALIFIES ?
Legislative Definition of SR&ED Work:
A systematic investigation or search that is carried
out in a field of science or technology by means of
experimentation and or analysis.
Categories of SR&ED Work:
● Basic research
● Applied research
● Experimental development
● Work in support

7. EXCLUDED WORK
● Social Sciences and Humanities
● Marketing and Sales Research
● Quality control and Routine testing
● Routine data collection, engineering or design.
● Style change in:
○ Commercial production or use
○ Prospecting, exploring or drilling for or producing minerals,
Petroleum or natural gas.

8. How Claims are selected for review
All claims are subject to an initial screening, after which it is passed on for
Review, if flagged. Flagging triggers include:
● New claimant
● Poor claim history
● Range of ownership during the year
● Significant increase in money claimed
● Claims which appear to be in an excluded area
● Claims which do not appear to meet the program’s criteria

9. OUTCOMES
Good - successful review, claim accepted
Better - “Accepted As Filed” - no review
Worse - claim only partially accepted after review
Worst - claim denied after review

10. Avoiding Audit By CRA
● Describe the work in terms of technological challenge
And advancement, rather than product development.
● Don’t confuse business and technical problems
● Don’t make open-ended claims
● Be aware of the excluded areas (business, finance, education etc.)
● Comply with all the requirements of the T661 tax form

11. Preparations for Audit
● Treat CRA reviewers as technically literate but don’t assume
any specific expertise.
● At a review meeting have technical staff, including contractors,
Available to answer questions.
● Have a site tour or a demo ready.
● Financial reviewer will need to see details of expenses.
If no time sheets are available, be ready to explain how staff
Hours were allocated to the project.
● Have supporting material available.

12. CLAIM SUPPORT
CRA may ask for evidence: that the work performed as claimed,
by the people claimed to have done it, the level of effort was as
claimed. Additional evidence may be required to prove that the
work was systematically performed and the nature of the work
meets the criteria for SR&ED.

13. OUR PROCESS
● Provide a no-cost / obligation eligibility assessment.
● Write the complete science and engineering report.
● Advise and assist on gathering and optimizing applicable costs.
● Facilitate filing and follow-up with your internal / external accountants.
● Prepare tax schedules and file an amended tax return as required.
● Coach for and attend any SR&ED scientific / financial audits.
● Monitor your claim at CRA to facilitate timely processing.
● Provide methods to optimize future SR&ED claims.

14. OUR TEAM
● The Altrui SR&ED consulting team is comprised of highly
accredited professionals.
● Each member brings a unique mix of executive management
and hands on experience from many specialized fields of
business and industry.
● Our pool of resources has proven to be an enormous benefit to
our clients.
● You can depend on us for honesty, integrity and discretion.

15. OUR SPECIALITIES
● Winning science arguments that so have garnered a 100 % success
rate- note, we write and manage the claim completely.
● Identifying eligible activities to claim.
● Unearthing costs that may otherwise go unnoticed.
● Minimize time taken with your internal staff to deal the tedium of this
process - typically 1 hour in total per project.
● Dedicated scientist, engineers, accountants and process experts are at
your service.