Incentives in shreds? Not quite

Posted on Jun 21, 2012

Changes to SR&ED program coming your way in 2012 – with more audits

SR&ED (scientific research and experimental development) incentives are here to stay, but the program is quietly undergoing significant alteration. Short version: expect more scrutiny.

With the federal government projecting a $36-billion deficit, Canada Revenue Agency has narrowed the interpretation of what qualifies as SR&ED to reduce the value of projects and expenses qualifying for refunds or credits.

Change began in June 2010 with a radically new CRA directive to deny SR&ED claims lacking “sufficient” supporting evidence, even if the projects clearly met the definition of SR&ED. Now more claims are being denied, and CRA has reduced it’s payout by about 30 percent. At the same time, CRA in British Columbia has increased it’s audit staff by 50 percent so as to scrutinize each claim more closely.

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Funding & Tax Credits
RSG has joined RSM Canada

RSG has joined RSM Canada as of Dec. 16, 2021

As part of RSM Canada, we’ll take the next step in our growth strategy, continuing to help our clients benefit from the credits and incentives services we offer, while enhancing our offerings with additional tax, audit and consulting services and resources.