Sometimes knowing how to complete all the requirements for the tax schedule can be challenging – so some companies decide to enlist the help a consultancy to better organize and make sure they provide all the necessary documents and procedures, especially in the case of benefits such as the SR&ED.
Created by the Government of Canada, the Scientific Research and Experimental Development (SR&ED) initiative was implemented to help companies in Canada invest in innovation in a variety of ways, supporting businesses with financial support for Research and Development (R&D).
The benefit provides tax credits for eligible expenses under certain qualifications. SR&ED refunds are eligible once a year and may take weeks or months to arrive, so it’s important to be aware of deadlines and requirements.
While it’s possible on your own, applying for SR&ED can be a complicated process that requires accurate documentation to ensure you maximize your reimbursement and avoid a time-consuming audit. Therefore, it’s not uncommon for some companies to resort to partnering with a qualified consultancy.
A SR&ED consultancy is a specialized consultancy that helps people and companies to properly comply with the claim regime, remaining up to date and active to recognize eligible projects and expenses and helps its clients with the technical and financial part of claiming the benefit . It is also important to note that SR&ED requires technical and tax knowledge, especially considering the frequent possibility of changes and developments involving legislation and requirements. Therefore, having specialist consultancy in this area is a good way to ensure that you’re up to date with any changes as they happen.
Each company has its own needs and details to consider, which can bring several benefits to working with a specialized consultancy. Counting on an expert can eliminate doubts regarding possible changes, updates, and specifics in requirements. Documentation review is also a common cause for application denial or delay in review, along with a few others, according to the Canada Revenue Agency (CRA), as well as:
• Incomplete or incorrectly filled forms;
• Confusion about business types;
• Lack of supporting information;
• Ineligible expenditures claimed;
• Lack of information on scientific or technological advancement: Clearly identify how your R&D work focuses on scientific or technological advancement;
• Other financial assistance not disclosed: Disclose all other financial assistance your business receives, including both government and non-government assistance;
• Claims submitted with false information;
• Delays in sending information or scheduling meetings with the CRA.
With the help of a consultancy, it’s easier to find errors or missing information between files before filing the claim. In this way, working with a consultancy can minimize your risks and facilitate your return – in addition to helping to reassure and minimize possible complications in the process.
FI Group is a global tax consultancy that helps industry obtain tax credits and incentives, with more than 1,800 qualified employees, counting on specialists from different fields, committed to supporting companies of all sizes and in all sectors of activities. With our expertise, FI Group specialists can support your company in identifying qualified activities. We specialize in helping companies finance innovation and secure funding for their R&D activities through the comprehensive management of the R&D Tax Credit.
