SR&ED Canada Tax - Scientific Research & Experimental Development (and why it can be worth A LOT) скачать в хорошем качестве

SR&ED Canada Tax - Scientific Research & Experimental Development (and why it can be worth A LOT)

Finance Learning Lab: https://financelearninglab.com/ SR&ED stands for, “Scientific Research & Experimental Development”. It is a very unique tax credit that the Government of Canada has put in place to encourage some research and development within our country. If you are a Canadian Controlled Private Corporation (CCPC), you can be eligible to get back 35% of your eligible spend on R&D activities. That could mean up to just about $1 000 000. So there is typically a cap meaning you can really only spend about $3 000 000 of what they actually reimburse you for and you would get back 35% of it as a cash refund.  To determine your business's eligibility, do a simple Google search for SR&ED and navigate to the CRA website. They happen to have quite a few different online resources to be able to take you through a process to figure out, "Am I even in the ballpark of pursuing one of these claims?". So, what we're going to do is walk through a 5-Part test that the CRA has shared under their Self-Assessment Learning tool, for SR&ED claims and walk you through it at a very cursory level. So step 1 is figuring out, "Do you have some kind of R&D at play here?". Step 2 is when you're actually going to go through and you're going to figure out what expenses are/aren't eligible. Before you get to that path, you need to actually establish that there truly was some R&D at play in whatever you're working on. And this is the more important part for you to kind of anchor in your mind to remember because this is what's going to trigger you down the road when you're working on something to say, "Could this possibly be SR&ED, and if so, is there an opportunity involved here?". Basically in Step One, you're figuring out, "Am I SR&ED eligible?". And the first part is going to be determining scientific or technological uncertainty. The way to know that there's some element of certainty or some not element of certainty is these 4 criterions that tend to tell you that there's not really significant uncertainty involved. So, the four criteria that you can see here is: There's a straightforward application of a solution that's publicly available in the internet You're applying procedures or techniques known to you or that you are fairly certain would succeed You hired a consultant who knew how to solve the problem You asked for a solution from your supplier, vendors, or partners. The next part is assessing if what you were doing involved creating different hypotheses to reduce or eliminate that uncertainty. So, if there was some element of technological uncertainty, but you just basically abandoned the problem. So there was something there, you don't know the technology and you forget about it or you said, "You know what, we're going to completely work around it". This may involve actions such as lowering your quality criteria or changing the specifications. And then step number 3 is, "Was the overall approach consistent with the systematic investigation?". So really, what you're thinking here is, "Did you follow some semblance of a scientific method?". So, essentially, did you randomly throw darts at a wall or did you go very systematically through a particular process? Alright, so now you've crossed the first three hurdles. The next step is, "Was it undertaken to get some kind of an advancement in science or technology?". Advancement is very going to be very, very closely related to uncertainty. What is important to know with advancement is that your project actually doesn't have to use succeed. So if you run a test, you had your hypothesis, you determine your variables, you ran your test and you didn't achieve what you had set out to achieve. Essentially, your test "failed" but that does not rule you out and that does not mean that your project was unsuccessful. What it really means is that you went through it in a fairly systematic approach. Step 5 asks us, "Did you record any evidence of it?". So, with anything that you're dealing with in the taxation, accounting or finance space, you're going to want to always be keeping very detailed records of the way that you're working. You want to make sure that you can demonstrate that you actually had certain hypotheses that were being tested and that you kept the results. So it's not enough if you did all four of the steps and passed all of those hurdles, put it all in a white board and just whiteboard it all away. No! Make sure you're actually keeping a record of what you're doing, and of course, the more documentation the better. So that really is a critical aspect of making sure that your business documentation is in place. Please subscribe to Finance Learning Lab on YouTube Find out more about our live programs here: https://financelearninglab.com/