Performing Scientific Research & Experimental Development (SR&ED) work can be a lengthy process that requires a number of resources, including stable funding to continue performing experiments and devising products and processes that will not only advance science, but also improve the lives of many Canadians who will benefit from your research. As such, by claiming SR&ED tax incentives, researchers like you in Edmonton or Calgary can continue doing good work. But do you know how exactly your projects are reviewed before you can successfully claim SR&ED incentives?
Here, our SR&ED consultants in Calgary and Edmonton explain what happens during a SR&ED technical review to help you polish your projects, and ensure that when submitted, these meet the CRA’s standards.
Mutual Expectations During Technical Review
Just like in any process, claiming SR&ED incentives for your research work is best facilitated when you, as the researcher and claimant, and the RTA assigned to your claim are both clear about mutual expectations throughout the process. At the start of the review, the RTA assigned to your claim can review with you these expectations.
Expectations from RTAs
As you undergo the review process for claiming SR&ED in Calgary or Edmonton, you can expect the RTA assigned to your case to work with you.
This includes explaining what the SR&ED Program is, requirements for qualifying, as well as services made available by the CRA to aid in the process, such as pre-claim consultations. Before the site visit, the RTA should also inform you about the issues they plan to address, their approach, and supporting evidence they may require to arrive at a decision.
In the process of the review, the RTA will also identify issues that arise and ways these can be resolved, through questions they can ask to clarify the situation and supporting evidence they can examine. At the end of the visit, they will provide indications of remaining concerns, and a transparent timeline they will follow in examining information gathered during the review.
In the event that the work you performed is not eligible for claiming SR&ED, they will explain their decision in writing to give you a better understanding of the requirements, and allow you to be in a better position to provide facts that had not been part of the decision. Additionally, RTAs are expected to coordinate their review work with Financial Reviewers to avoid administrative delays. Finally, RTAs will provide feedback and advice, such as explaining deficiencies in project information required in claiming SR&ED in Calgary or Edmonton.
Expectations from Claimants
In claiming SR&ED, you are then expected to meet certain requirements and follow standards set by the CRA.
This includes complying with program requirements and preparing for site visits by making requested information, including evidence and personnel available. This also includes making sure that documentation created during the execution of SR&ED work is available and organized for review, and that someone is available to explain their significance. When claiming SR&ED in Calgary or Edmonton, you should prepare for the possibility of an extended or shortened review, depending on its progress and the new issues that arise.
To stay on track for claiming SR&ED, you should provide as early as possible in the review process information or evidence relevant to supporting your claim. You should also ensure that you can answer questions and address the issues identified by the RTA before and during the review, and have information regarding how said issues were addressed available.
During the review, make sure that you are prepared to explain how the claim was put together, and what supporting evidence was used in preparing it. To expedite claiming SR&ED in Calgary or Edmonton, make sure to provide complete responses and supporting information; address any concerns raised by the RTA regarding the quality of the project information; and inform the RTA of any concerns, all within a reasonable time frame.