Tranlingo SR&ED Solutions

The Scientific Research and Experimental Development Program, known as SR&ED, is a tax incentive program offered by the Canadian government to companies that strive to innovate.

The program aims to foster experimentation and technological advancement for the benefit of the Canadian economy. Most importantly, the SR&ED program provides market incentive for the creation of innovative products, services and processes. The SR&ED program is exclusively managed by the CRA; however, most Canadian provinces have their own R&D tax programs. Eligible organizations may be able to benefit from additional provincial credits that can be substantial.

Canada boasts one of the most generous R&D Tax Incentive programs in the world, paying in excess of $4.2 Billion (CDN) to more than 20,000 eligible claimants on a yearly basis. Based on program criteria, participants can receive significant refunds or tax credits to offset a portion of their qualified R&D expenditures.

The SR&ED filing process is rigid and requires specific areas of expertise. To participate in the program, claimants must submit a SR&ED claim to the CRA within 18 months of their fiscal year end. Companies that fail to produce a properly documented claim by the deadline will be denied any tax credits. In addition to meeting the filing deadline, companies must show appropriate documentation and provide precise project details while documenting proposed claim expenditures.

With an increased emphasis on program compliance, submissions must be presented and documented appropriately or risk the chance that the CRA administration will refuse the companies claim. A majority of claimants are discouraged by the rigid nature of the SR&ED program. Confusing legislation and time-draining report preparation can outright deter businesses from program participation, Tranlingo cuts through the murkiness to provide the project clarity and expertise to submit a successful submission.