October 31, 2013

Changes to the Form T661

The form has been revised to accommodate the legislative changes coming into effect on January 1, 2014, and to make sure the form is consistent with the consolidated SR&ED policy documents released in December 2012.

You may submit T661(12) version of the form until December 31, 2013. Starting January 01, 2014, CRA will accept only the T661(13) version of the form for all tax years.

The following changes have been made:

Lines 223 to 229 in Part 2 have been removed.

Lines 230 and 232 in Part 2 have been removed. The relevant information from these lines is now requested on lines 620 and 622 in Part 7.

Lines 235 to 238 in Part 2 have been removed.

Former Sections B and C in Part 2 have been consolidated so that all claimants answer the same three questions in Section B.  The order of the questions in Section B has also been changed.

Notes in Parts 3 and 4 have been introduced to reflect that expenditures for capital property or the right to use capital property, can no longer be claimed after December 31, 2013.

The descriptions for lines 350, 355, 390, and 504 have been changed to reflect that expenditures for capital property or the right to use capital property, can no longer be claimed after December 31, 2013.

The description for line 820 has been changed to accommodate the 10% reduction in the prescribed proxy amount (PPA) for the number of days after December 31, 2013, in the tax year.

Part 9 Claim preparer information

The March 21, 2013 Federal Budget announced that the CRA requires additional prescribed information in respect of SR&ED claim preparers. The CRA have introduced a new Part 9 to capture SR&ED claim preparer information. Part 9 must be completed for claims filed on or after the later of January 1, 2014 and the day on which the enacting legislation received royal assent.

Part 10 is formerly Part 9 – Certification.

The revised version of Form T661 (revision code 1301) is effective as of its publication date. Claimants are encouraged to start using the new form immediately.

The T661(12) version of the form can be submitted until December 31, 2013. Starting January 1, 2014, the CRA will accept only the T661(13) version of the form for all tax years.