Corporate Tax - Scientific Research and Experimental Development (SR&ED)

Overview:

The past few years have brought many challenges to businesses. The resulting focus on innovation to remain successful has created renewed interest in the Scientific Research and Experimental Development (SR&ED) program. 

This course provides you with information and skills required to navigate the SR&ED claim process including who is eligible, what types of work are eligible, how to claim expenditures and investment tax credits, and how the SR&ED program intersects with other government subsidies and stimulus payments. The course provides you with materials necessary for a basic understanding of the program and eligibility criteria to assist in the preparation of SR&ED claims and to incorporate these claims into corporate tax returns.

It provides an overview of the characteristics of eligible SR&ED as well as work that is not eligible and is illustrated with examples based on recent case law.  The allowable and qualified expenditure rules are also covered, including the impact of government grants and stimulus payments on the calculation of SR&ED tax credits. As the course progresses, it addresses more advanced content on specific aspects of the program. 

This course also provides an update of CRA policies including the 2021 Guidance on Eligibility, an update of relevant case law, as well as a more in-depth discussion of selected topics including government assistance, non-arms length transactions, adjustments to qualified expenditures, and CRA audits, assessments, and appeals. 

Course Content:

In this course, you will gain knowledge about the following topics: 

• Overview of the SR&ED program in Canada
• Who can claim SR&ED tax credits
• Step by step approach to claiming SR&ED tax credits
• Factors to help you determine whether work is eligible for SR&ED tax credits
• Types of expenditures that qualify for SR&ED tax credits
• Calculation of qualified expenditures for investment tax credits including the impact of government stimulus payments on SR&ED claims
• Federal and provincial tax credit rates for different types of corporations
• Overview of SR&ED filing requirements, CRA reviews, assessments, and appeals
• Update on legislation and current cases
• CCPC status and de facto control
• Salaries or wages and prescribed proxy amount
• Government assistance and contract payments
• Materials, supplies, and recapture
• Eligibility of work for SR&ED tax incentives, including 2021 CRA guidance and the 5-question approach used by the courts

Learning Objectives:

By the end of this course, you will be able to:  

• Identify the characteristics of work that may be eligible for SR&ED tax credits
• Determine whether a company is entitled to claim refundable credits
• Research basic issues using the CRA website
• Apply this knowledge to file SR&ED claims using prescribed forms
• Navigate CRA reviews, proposals, and appeals
• Analyze and apply legislation and policies regarding more complex issues including CCPC status, salaries or wages and prescribed proxy amount, materials, supplies and recapture, Government assistance including stimulus payments, and contract payments
• Understand and apply current issues impacting SR&ED claims including developments in case law and CRA assessing policies

Who Will Benefit: