You’ve finally decided to process a SR&ED claim, but when you turn to the CRA website, it’s nowhere to be found. That’s because the CRA website has been modified and integrated into Canada’s government website, Canada.ca. Unfortunately, this makes finding guidelines and direct SR&ED pointers a little more difficult. As a first time claimant just beginning to understand the eligibility requirements and submission process, you need clear access to SR&ED guidance.
But it’s not just where to find information about SR&ED that’s changed; the services offered by the CRA, including their self assessment and learning tool (SALT) have also been altered to reflect Ontario’s tax changes in the past year. These provincial income tax reductions make it even more challenging to find ways to maximize your revenue. That’s why, with the help of a SR&ED company in Toronto, it’s easier to adapt to the changes in Ontario’s tax laws, allowing you to navigate the new intricacies of the claims process.
Avoid the Pitfalls of Limited CRA-Specific Knowledge
Making the CRA a subpage of Canada’s government website buries crucial SR&ED information beneath services, taxes, income tax, and corporate income tax pages. Morevover, there is no direct link to a SR&ED program page. The alternate way through the business drop down menu is no better as it confuses individual businesses or members of proprietorships who are uncertain if “business” applies to them. This vague term can easily discourage potential claimants from using this avenue to essential SR&ED program information.
CRA Updates SALT to Factor in Ontario Income Tax
The SALT tool exists to help claimants understand the SR&ED program and calculate Income tax credits (ITC).
You must download 2 interactive pdf files to complete:
- The first estimates if there is SR&ED in the project and creates a report on the likeliness of eligibility
- The second calculates the ITCs the claimant is entitled to. Only then can you effectively prepare your SR&ED claim.
Income tax reductions have changed how the rates are calculated in second report. The Ontario Research and Development tax credit was reduced June 1, 2016 from 4.5% to 3.5%, and the Ontario Innovation Tax Credit reduced from 10% to 8%. So, not only do you need a SR&ED expert to confirm if these estimates are accurate, but to also take the extra time to make sure you’re aware of every area of potential income to accommodate for these tax reductions.
How SR&ED Tax Experts Help
SR&ED experts are crucial to ensure your claim is as accurate as possible. Investing in a SR&ED company gives you the experience based knowledge you need to get the most out of your next claim by:
- Screening your projects to determine SR&ED eligibility;
- Preparing technical reports detailing experimental activity;
- Preparing tax schedules and accounting reports for project costs;
- Submitting your SR&ED claim; and
- Working with you through the review process, ensuring a successful claim.