According to a 2015 study by PWC almost half of Canada's start-ups do not "take advantage" of government "funding" opportunities. Apparently, many do not know that the Canadian government has numerous financial incentive programs in place in efforts to spur Canadian innovation, despite this being the case for the majority of the world's advanced economies, including the US.
One of Canada's major funding programs is the Scientific Research and Experimental Development Tax Incentive Program (SR&ED). Companies who take advantage of SR&ED are at a competitive advantage to similar companies who do not. This is because SR&ED tax credits can result in a financial benefit equal to 68% of a company's R&D expenditures.
For example, if you are an Ontario-based Canadian Controlled Private Corporation (CCPC) with $100,000 in SR&ED expenditures in 2015 you can receive approximately $46,000 as a cash refund and $22,000 as a credit against tax owing. These funds can be used to grow and expand your business, strengthening the Canadian economy and providing highly skilled jobs.
The SR&ED program is administered by the CRA. In recent years, in an effort to stem fraud, CRA has put more effort into reviewing claims and ensuring tax dollars are not wasted. In addition, because of the complex interaction between the R&D that companies submit as eligible for tax relief and the law, expert assistance is recommended.
Our experts have been involved in SR&ED for over a decade and we have the capability to submit and defend your claim, all the way to the Tax Court of Canada if necessary. Whether you are a first-time claimant or require representation through a CRA audit our experts are ready.
And due to our low overhead we offer some of the lowest contingency rates in the business. Contact CrossDynamix for all your SR&ED needs.