The CRA Makes It Easier for SR&ED Claimants

The Canada Revenue Agency (CRA) is making it easier for corporate taxpayers to determine if they qualify for the Scientific Research and Experimental Development (SR&ED) tax incentive program.

The CRA acknowledges that businesses can operate with more certainty if they know that their claims qualify for the SR&ED investment tax credits. So, following the Economic Action Plan 2012 and almost 16 months of public consultations, the CRA is taking steps to improve the predictability of the outcome of SR&ED applications.

First, the CRA is considering the feasibility of a formal pre-approval process. It will conduct a pilot program this spring and is looking for participants. Go to the CRA website for more information.

Second, the CRA is enhancing its online eligibility self-assessment tool (ESAT) — available since 2008 — to make it easier for businesses to determine if the work they have done qualifies for the program. It will also help claimants complete Form T661, Scientific Research and Experimental Development (SR&ED) Expenditures Claim. Members of the SR&ED community are testing a preliminary version of the tool and providing feedback before the enhanced ESAT is available on the CRA website.

Third, to improve the review process for Notices of Objection, the CRA has hired additional staff with a broad range of science and engineering expertise so they can perform more specialized reviews.

Finally, the CRA will continue to work with stakeholders to address emerging issues, whether it be forums for particular industries that use SR&ED incentives or preparing case studies and technical papers.