Scientific Research & Experimental Development (SR&ED, or commonly pronounced as ‘SHRED’) is a federal tax incentive program administered by the Canada Revenue Agency (CRA). It encourages Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) to create new or improve existing products, processes, principles, methodologies or materials. It is the largest single source of federal government support for industrial R&D. https://www.linkedin.com/in/asad-zia-39527764
In Alberta and British Columbia claimants can recover up to 64% of qualifying expenditures in refundable or non-refundable tax credits (this rate can be as low as 20% for some corporations).
The three criteria for determining the
eligibility of work as SR&ED are:
Technological
Advancement. The
search carried out in the experimental development activity must generate
information that advances your understanding of the underlying
technologies. In a business context, this means that when a new or
improved material, device, product or process is created, it must embody a
technological advancement in order to be eligible. In other words the work
must attempt to increase the technology base or level from where it was at
the beginning of the project.
Technological Uncertainty. Technological obstacles/uncertainties are the technological problems or unknowns that cannot be overcome by applying the techniques, procedures and data that are generally accessible to competent professionals in the field.
Technical Content. A systematic investigation entails going from identification and articulation of the scientific or technological obstacles/uncertainties, to hypothesis formulation, through testing by experimentation or analysis, to the statement of logical conclusions. In a business context, this requires that the objectives of the scientific research or experimental development work must be clearly stated at an early stage in the evolution of the project, and the method of addressing the scientific or technological obstacle/uncertainty by experimentation or analysis must be clearly set out.
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