Services
Our Grants Services
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SR&ED Program
Scientiific Research & Experimental Development Program
SR&ED is short for Scientific Research and Experimental Development. It is a federal tax incentive program that comes in three forms: an income tax deduction, an investment tax credit (ITC), and, in certain circumstances, a refund.
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EBC & VCC
Eligible Business Corporation (EBC) & Venture Capital Corporation (VCC)
Individual investors are entitled to a 30% refundable tax credit, up to an annual maximum tax credit of $120,000.
Corporate investors are entitled to a 30% non-refundable tax credit, however, there is no annual tax credit limit.
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SR&ED Program
What is SR&ED Tax Credits (SRED refund)?
SR&ED (or SRED) is short for Scientific Research and Experimental Development. It is a federal tax incentive program that comes in three forms: an income tax deduction, an investment tax credit (ITC), and, in certain circumstances, a refund.
The purpose of SR&ED is to encourage Canadian businesses of all sizes and in all industries to conduct research and development (R&D) in Canada. Eligible businesses can get a refund of up to 64% of eligible expenses. Over $3B tax incentives are disbursed to more than 20,000 applicants through SR&ED Program annually.
SR&ED Eligibility
The SR&ED program is available to any business operating and carrying out R&D (Research and Development) in Canada. The qualified R&D work/project can be either basic research, applied research, or experimental development to meet the requirement of the SR&ED program. To start with, Please don't hesitate to contact our SR&ED experts.
Who can submit an SR&ED claim?
Generally, all kinds of businesses could apply for SR&ED with eligible projects. But there are three types of companies that are not recommended to apply:
1. Non-CCPCs (Non-Canadian-controlled private corporations)
2. Non-profit Organizations or companies not paying taxes to the Government of Canada
3. Public Companies
You might be able to apply for the SR&ED tax credit if your business belongs to the following business sectors:
IT, Automotive, Logistics, Catering, Travel, Energy, Manufacturing, Agriculture, Consulting, Marketing,Real estate, Engineering, Food and Beverage, Environmental ……
Not sure if you are eligible? Talk to us and check your eligibility
SR&ED Application processes
The SR&ED application process includes the following main steps:
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Identifying SR&ED eligible activities / projects.
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Create a unique SR&ED case study claim strategy that will maximize your SR&ED submission.
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Identify all associated supporting documentation to defend your SR&ED claim
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Prepare technical report for each of the SR&ED projects (as per CRA requirements)
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Identify all eligible SR&ED financial expenditures
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Prepare the SR&ED tax schedules and file the SR&ED claim with your corporate tax return (within 18 months past the corporate fiscal year end)
Specific Steps
Making a claim under the SR&ED program can be a very confusing and intimidating process for a typical company. We take the mystery and complexity out of this process by our systematic approach to the claim. Our methodology is simple and streamlined.
Step 1 – Planning
We start our assignment with a complete review and analysis of the structures already in place at your company. This helps us to identify all SR&ED eligible activities, related documentation, and cost allocation methods. We will be meeting your high-level technical and financial managers during this process and plan the execution of Step 2.
Step 2 – Preparing and Filing
Once all major SR&ED activities are identified, we then set out to prepare a claim by assembling accounting and technical documents to support the claim. This process involves:
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Analysis of technical issues for each SR&ED project.
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Analysis and assimilation of costs and cost-related documentation for each SR&ED project.
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Preparation of relevant Federal and Provincial Claim forms and relevant information to be filed.
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Filing of the claim within timeliness permitted by CRA.
Step 3 – Follow up with CRA
After a claim is filed, we rigorously follow up with CRA (and the Provincial Governments, wherever applicable) to get the claim reviewed and finalized so that your Company can get the refund/credit from the claim as soon as possible. This process involves:
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Setting up and coordinating CRA reviews of the technical summaries and financial claim figures.
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Assisting your company in resolving all issues related to the claim.
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Providing all necessary information to CRA to finalize the claim.
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Following up with CRA until an assessment/(reassessment) for the Claim is received.
Step 4 – Ongoing Advisory Services
As our engagement with your company continues, so does our commitment even after a claim is accepted by CRA and a refund/credit is issued. We work continuously with your Company and provide you with relevant feedback based upon our experience with your prior claim to make your Company more SR&ED credit compliant in the future in order to:
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Make the information gathering process less intrusive in the future.
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Increase awareness in your Company to identify SR&ED projects with greater ease.
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Maximize the future claims of your company by implementing a “SR&ED directed tax planning” model.
This is “our end-to-end and beyond” service, intended to make it a totally painless process for your company to receive much deserved SR&ED credits.
CDAP (Canada Digital Adoption Plan)
What is CDAP?
The CDAP (Canada Digital Adoption Program) is a Canadian government initiative aimed at supporting small and medium-sized businesses in embracing digital technologies. Through the program, businesses can access funding and expertise to enhance their online presence, adopt digital tools, and undergo training to utilize these tools effectively. The objective is to drive competitiveness, productivity, and growth by helping businesses navigate the digital economy.
CDAP Eligibility
Eligibility for CDAP:
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Business Size: The program is primarily targeted at small and medium-sized enterprises (SMEs). The specific definition of SME might vary, but typically, it refers to businesses with a certain number of employees or a certain threshold in annual revenue.
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Business Operations: The company should be operating in Canada, with a significant portion of its activities based within the country.
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Digital Adoption: The business should demonstrate a genuine need for digital adoption, whether it's for improving online commerce, internal operations, or digital marketing
Claim Process
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Application: Begin by submitting an application that outlines your business's current digital standing and the specific needs or areas where digital technology would be beneficial.
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Assessment: The government or its designated agencies will assess the application to determine if the business meets the criteria and to gauge the potential impact of digital adoption.
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Approval & Funding: Upon approval, the business might receive funding, which could be a direct grant, a loan, or a combination. This funding can be used to purchase digital tools, hire consultants, or undergo training.
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Reporting: Once the funds are utilized, businesses often need to submit a report detailing how the money was spent and the outcomes of the digital adoption process.
EBC/VCC
Qualifying Business Activities
The EBC must be substantially engaged in one of the eight qualifying activities from the time of registration to 5 years after the date of the last investment for which an investor received a tax credit.
1. Manufacturing and processing of goods produced in British Columbia;
2. Destination tourism resort, tourist attraction or a tourist service;
3. Research and development of proprietary technology;
4. Development of interactive digital new media product;
5. Community diversification by an EBC located outside the Metro Vancouver Regional District and the Capital Regional District*;
6. Manufacturing and processing and/or research and development of clean technologies;
7. Advanced commercialization carried on by an EBC located outside the Metro Vancouver Regional District and the Capital Regional District; and
8. Scale-up activities carried on by an EBC that has been substantially engaged in one of the seven qualifying activities for the previous 2 years, and at least 2 years has elapsed since the EBC first raised tax credit supported equity capital.
Tax Credits:
Individual
Individual investors are entitled to a 30% refundable tax credit, up to an annual maximum tax credit of $120,000. Individual investors who invest in the first 60 days of a calendar year can elect to apply their tax credits to the previous calendar year's tax return.
For example, an investment made February 18, 2023 can be claimed on their 2022 tax return or their 2023 tax return.
Corporation
Corporate investors are entitled to a 30% non-refundable tax credit, however, there is no annual tax credit limit. Corporate investors can only claim the tax credits in the year of investment.
Both individual and corporate investors can carry unused portions of tax credits forward for four years.
Individual Service
Corporation Service
Tax Credit Certificate Service