SR & ED

The federal government offers an incentive program in the form of investment tax credits to encourage firms doing business in Canada to develop new or improved products, materials, devices, or processes. The rates of reimbursement range from 20% to 50% of eligible expenses.

The Scientific Research & Experimental Development (SR&ED) Investment Tax Credit Program pays out almost 2 billion dollars annually. Most of these funds are for practical development work.

Our files are handled by the Technical Consultants at BTCI, who are experts in the fields of technology, engineering or computer sciences and experienced in successfully maneuvering claims through the approval process. Pre-qualification is undertaken to confirm whether the potential for an SR&ED claim exists and if any further time should be invested.

If it is determined that you are an eligible claimant, the Recovery Specialist commences the on-site review by interviewing key technical personnel in your organization and creating a technical description of your project. Our method ensures that all pertinent information is included and detailed in order to speed your claim through the CRA review process. When the project descriptions are completed our Specialist costs out the claim, with the assistance of financial data provided by your accounting personnel.

It is a requirement of the SR&ED program that all claims are audited, either through a desk or field audit. Fairtax has a high incidence of desk-audited claims due to our reputation in the field. If CRA does perform a field audit, we'll often attend the CRA meeting in order to minimize your involvement and ensure you are treated fairly. It is important to note that only your SR&ED claim will be reviewed. A general tax audit will not occur as a result of filing the SR&ED claim.

On completion of the review you receive a copy of the technical descriptions of your projects attached to the amended income tax returns we have completed on your behalf. Our tax planning service is a key component in maximizing your recovery. We remain in contact with CRA until you have the monies in hand. Fairtax is an excellent choice of service provider for any firm performing research and development in Canada.