Many businesses – in particular, small and mid-sized businesses – are unaware that the work they do may qualify for a SR&ED tax credit. Is your business one of them?
How much new business did your SR&ED claim generate for your company in the past year? If your answer is none, not enough or, worse yet, “What are you talking about?” then read on. The fact is the annual review your company undertakes in preparation for its SR&ED claim can easily be transformed from a burden everyone wishes to avoid into an important and welcomed catalyst for growth.
The biggest mistake you can make when it comes to your annual SR&ED (Scientific Research and Experimental Development) tax credit claim is to not file a claim. However, the next biggest mistake is to fail to take advantage of the detailed business and financial information generated during the SR&ED review process. A thorough SR&ED investigation into your company should highlight your firm's emerging strengths and opportunities for growth.
The answer to this is YES and YES. The government -- and particularly the Canadian government -- has a mandate to support various business development initiatives and they achieve this through incentive programs. Many of these incentive programs include tax rebates, direct funding, loans and other forms of grant money.