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Scientific Research & Experimental Development Program Consulting
RSM's credits and incentives team provides a broad range of services to help clients identify and secure opportunities as offered by the SR&ED tax credits program:
- The SR&ED tax credits program has been governed by the Canadian Income Tax Act since its creation in 1986, and supports the development of products and processes in Canada
- Over $3 billion in tax credits are awarded yearly
- The program provided at the Federal and provincial levels, and recovery can be as high as 68 per cent for Canadian Controlled Corporations, and as high as 43 per cent for publicly traded, large private, and foreign-controlled companies
- Eligible expenses include salaries, contractors costs, materials transformed or rendered useless in the experiments
- The SR&ED tax credit applies to companies of any size and in every industry
- Tax credits are not limited to R&D; some of the eligible work can even be found on the shop floor. Companies do not need to succeed, or be the first to develop the technology. Even of company is paid for the work, it might still be eligible
- Since 2012, the federal and provincial governments have been tightening the SR&ED program by reducing credits, increasing compliance and substantially increasing the number of audits
- In spite of these changes, the SR&ED program continues to be a leading incentive program in Canada and it remains one of the best worldwide in support of innovation
- Applications must be made no later than 18 months following the company’s year end
We recommend you work with our credits and incentives team and enlist them to take a look at your various business activities to see whether you qualify.
Our SR&ED consulting process
- Kick off meeting – Our team meets with the client to finalize timelines and discuss logistics for an on-site meeting
- Initial on-site meeting – We provide practice training on SR&ED and examples of eligible projects, followed by a discovery discussion to identify relevant projects
- Technical meeting – We prepare all documentation for the SR&ED application, including interviewing the technical lead(s) for the technical report
- Costing – We identify all eligible costs, request payroll and other expense supporting documents and prepare the costing to include in the submission
- Tax – We incorporate the technical content and the costing in all relevant corporate tax return forms
- Follow up with CRA – Our team received bi-monthly status updates from CRA on the approval status of the SR&ED claims
- Audit support – If the claim is selected for review/audit, our team will prepare the client and attend the meeting with CRA to help defend the claim
Robust and transparent engagement planning
Each year RSM will prepare a detailed engagement plan and communication plan to ensure clarity and transparency.
End-to-end client support
We prepare your entire claim, making it as seamless and effortless as possible for you and your employees. We take care of your SR&ED claim so you can focus on running your business.
Industry specific training
We offer clients practical industry specific training that will allow its employees to recognize SR&ED while performing it.
Highest quality standards
RSM has built a strong reputation with the CRA and leading claim success. Our audit rate of less than 5 per cent is substantially lower than the overall national CRA compared average of 40 per cent.
RSM systems and proprietary solutions
We provide clients with a project / time tracking system adapted for SR&ED, as well as a collaboration tool to facilitate communication throughout the engagement.
We continue to meet clients throughout the year to ensure all eligible projects are uncovered, documented, and costing cumulated. This ensures legitimate claim optimization.
As a member of RSM International, RSM Canada can provide R&D tax credit services not only for businesses based in Canada and the United States, but also other international jurisdictions.