Our work is not new. Would we qualify?
Answer 
Your activities or projects don't need to be new to qualify, nor do you need to be the first to develop the technology. To qualify however, the solution to the technological obstacle that you are trying to surmount cannot exist in the public domain, and should not be easily solvable using standard engineering practices. But no, your work does not have to be new to qualify.
We subcontract most of our R&D. Would we qualify?
Answer It is fairly common for small and medium business research and development programs to seek outside help. As a general rule, so long as the work is performed in Canada and the contracts clearly define the intellectual property rights as yours, the knowledge has been transferred back to you, or you have taken the risk, you may make a claim in the SR&ED program.
Will my entire business be audited if I apply for an SR&ED claim?
Answer No, SR&ED reviews are independent from all other forms of CRA auditing. An SR&ED review is not related to corporate tax audits. In fact, CRA has separate offices and groups that manage the SR&ED program.
Do I need to have documentation?
Answer Yes, documentation is imperative in the SR&ED program as a means to retain technological achievements. However, a documentation standard doesn't exist. Rather, contemporaneous documentation or notes, test data, and even correspondence that you have generated during the course of research and development is the generally accepted form of capturing achievements. SR&ED ONE can assist you in determining the relevant supporting documentation, and set you up with systems and tools to document your future projects.
Does the government control how your refund is used?
Answer As SR&ED is a retroactive tax refund program, the refund can be used in any area of your business as you see fit. The government does not dictate how it is to be used. It also never has to be given back.
If my company is not showing a profit, and I am not paying taxes, can I still be eligible for SR&ED refunds?
Answer Absolutely yes! If you are CCPC (Canadian Controlled Private Corporation) you receive a refund cheque whether or not you have taxes owing. For foreign controlled, publicly traded and large corporations, that SR&ED is a non-refundable tax credit that can only be applied against taxes payable. The tax credit, however, can be carried back three years, and carried forward 20 years.
Is there a time limit for submitting SR&ED claims?
Answer You have 18 months after your fiscal year to submit your SR&ED claims. In other words, you have an 18-month deadline to claim for the fiscal year the work was performed. For example, the work during the fiscal year ending December 31, 2009, must be claimed by no later than June 30, 2011; come July 1, you can never go back.
Do you work alongside accounting firms?
Answer Yes, we would work with your accounting firm. In fact, most of our referrals come from chartered accounting firms.
How long does it take to receive the refund from the government?
Answer The CRA carries a service guarantee of 180 days for SR&ED claims made with corporate tax filings, and 240 days for amendments. However, this is only their Standard of Service of when you would receive a response to the claim. CRA has improved the program to expedite the process. If your claim is prepared properly with the assistance of a reputable firm, you might have your claim approved as early as one month.
How much can I recover?
Answer You can recover up to 72% of your eligible salary costs, and 44% of your contractor, materials and equipment lease costs.
How do we know if we qualify?
Answer You must look backwards in time at the work that you have done in the last few years and determine which meets the CRA criteria of (i) technological Advancement, (ii) technological Uncertainty, and (iii) Content. It is not easy to uncover all eligible activities, so you are well advised to seek the assistance of experts in the field. You can contact us for a free, no obligation Eligibility Assessment, or use our online Eligibility Tool. Where can I find more information on the SR&ED program?
Answer Canada Revenue Agency provides literature online, in seminars, and in print. You can also contact us today to speak with an SR&ED advisor at SR&ED ONE.
How much will it cost us?
Answer Retaining SR&ED ONE for an SR&ED claim has no up front costs. Our fees are based on the amount you receive, and are not payable until you get your refund. We also provide other flexible fee arrangements, so contact one of our principals to discuss an arrangement that would work for you at 1.877.266.0005, or e-mail principals@ideaciaone.ca.
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