April 8th, 2010 — 2:52pm
Documentation is paramount. We cannot stress this enough. Lack of proper and complete documentation is the number one reason why Scientific Research & Experimental Development (SR&ED) claims are audited by Canada Revenue Agency (CRA). Canada has one of, if not the most generous, R&D Tax incentive programs in the industrialized world. Great news for business owners, bad news for their accountants. Due to the generosity of the program, appropriate documentation that substantiates that eligible SR&ED costs were incurred, is now more than ever, a requirement when applying for SR&ED Tax Credits.
Not too long ago, RDP came across a prospective client who intended to file a SR&ED claim for a project whereby no documentation was available to support the claim. The client wanted to back date the information, expecting RDP to turn a blind eye, arguing that he knew of other SR&ED Consultants who worked this way on regular basis. In spite of our efforts to the contrary, this particular individual underestimated the degree of risk inherent in their decision. In the event of an audit, the SR&ED return would likely be cut back, and the company is sure to be scrutinized by the CRA in the future. In other words, triggering an audit will not only affect the current SR&ED claim but also any claims filed subsequent to it.
Demonstrating a thorough understanding of what constitutes eligible SR&ED work is the best defense against an audit. Establishing a detailed and comprehensive documentation process will amount to a very strong claim and will dramatically increase your chances of being viewed more favorably by CRA’s Research and Technology Advisors (RTA’s).
R&D and prosper…
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April 7th, 2010 — 10:12pm
Maintaining a competitive advantage is imperative in today’s market. RDP Associates has a history and reputation of working with companies to maximize their returns from government incentive programs. Be sure to contact us should you feel that your company may qualify for any of the programs listed below. At RDP Associates, our staff would be pleased to assist you in the application process for any funding available to your business.
Improve your Human Capital
Through the First Jobs program, Ontario business can receive funding of up to $40,000 to cover 50% of the wages paid to a newly hired Masters or PHD Level graduates. Assistance for Start Up companies rises to 80% and up to $50,000. The program requires that companies applying for the grant directly benefit from the expertise of the graduates in their efforts to launch a new product, service or process. Graduates must also have completed their studies within the past 5 years at an Ontario institution and be for the first time since, applying their newly acquired skills through in the workplace.
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April 7th, 2010 — 10:10pm
As investment in R&D increases throughout 2010, is your company positioned to maximize its R&D Tax Credit?
2009 had been marked as a challenging year for economies globally. Optimists stated that Canada’s economy grew for the first time in four quarters through the July-September period, which led many to proclaim our country’s first recession since 1992 had ended. Today, economists predict that the Canadian economy is set for a nation-wide recovery throughout 2010, rebounding from a contraction of 2.5 per cent in 2009, returning to positive growth in 2010.
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