The Canadian SR&ED (SC….) Program in Canada was setup to engange in research and development in Canada.
Largest source of Federal funding for Canadian Industrial R&D
Used by over 23,000 companies annually (2011)
75% of the companies are small to medium size
Achieved by ~ over $3.5 billion/year in tax credits, with no cap (2011)
Administered by CRA and the program was started in 1984
What is SR – Scientific Research?
Purpose – to obtain an “advancement in scientific knowledge” which encompasses Basic and Applied category under ITA 248 (1)
This would be an advancement in the field of science itself
“work done predominately in a laboratory”
Work to develop a “cure for cancer”
Accounts for less than 5% of the claims submitted
What is ED – Experimental Development?
Experimental Development is
Attempt to achieve (success is not relevant)
Technological advancement – increasing existing Technological base
New or improved materials, devices, products or processes
Includes incremental improvements
Follows a systematic investigation
Occurs in a commercial setting
Includes Support work
Accounts for 95% of all claims submitted
What did you do to the technology versus with it
Experimental Development is not
Trial and error testing where the success is a foregone conclusion
Defined as – performance of an activity to overcome an uncertainty which results in an increase in the technology base of the claimant from the beginning to the end of the project
How did the knowledge or know-how of the claimant increase/what did he learn
Success/failure is irrelevant
Advancement must be in business context of claimant
Must follow systematic approach/search by experiment
ResDev prepares SR&ED submissions on behalf of their clients. Since this our main focus, we are able to focus 100% of our energy on preparing the claims and staying current on SR&ED program developments.