Preparation of Scientific Research and Experimental Development Claims
We will work together with our clients to identify the activities within their corporation that fit the SR&ED provisions of the Income Tax Act and write on their behalf or work with them to write technical descriptions, which describe these activities. This process initially requires access to operational and research personnel within the corporation and is best accomplished in person. After the compilation of Activity Descriptions we will assist the client to create the Project level descriptions, which are to be submitted to the Canada Revenue Agency (CRA).
Having identified and documented the scientific projects, we then call upon the accounting system and principal investigator to quantify the relevant associated expenditures. We assist the accounting department with specialized calculations to compute the information needed for this special purpose since traditional accounting systems will not satisfy the income tax requirements directly.
We will prepare the complete required tax filings for insertion in the corporate tax return or, in the case of prior year’s required amendments, communicate directly with CRA. These filings are federal forms T661 and information to complete the T2 SCH031 for the federal tax credit. We calculate the provincial incentive for any eligible province across Canada in which research is performed. A complete Research Investment file, prepared to assist in the Revenue Audit process, supports the calculations on these required forms. As part of this tax filing, we review the corporate tax return from a research point of view to ensure that all deductions supported by our analysis are correctly recorded in the tax return that is actually filed.