Brush Up on New Form T661: Scientific Research and Experimental Development Program (SR&ED)

The federal budget of Marsh 2012 included proposed changes to the Scientific Research and Experimental Development (SR&ED) Program. 

The Canada Revenue Agency (CRA) has now provided a guide to assist taxpayers with completing the claim form (Form T661) and to accommodate the legislative changes which came into effect starting January 1, 2013.

The Knowledge Bureau Report recently wrote about the CRA’s plans to increase the transparency and predictability of SR&ED claims. It is now time to assist those taxpayers with the filing requirements. After January 1, 2013, the revised form will be the only form accepted by the CRA, for any taxation year.

Changes to Form T661. Specifically Line 529 has been added in Part 4 to reduce the expenditures for arm's length SR&ED contracts and third-party payments incurred after December 31, 2012, from the payer's qualified SR&ED expenditure pool by 20%. The description for line 820 has been amended to accommodate the 5% reduction in the prescribed proxy amount (PPA) for the number of 2013 calendar days in the tax year.

The guide offers line by line instructions on filling and filing the form here.

Greer Jacks is updating jurisprudence in EverGreen Explanatory Notes, an online research library of assistance to tax and financial professionals in working with their clients.