Any experienced SR&ED consultant offer audit defense as part of the package, which they can handle competently to see you claim sail through without your involvement at any stage of the process.
Although SR&ED (Scientific Research & Experimental Development) programs started in the eighties, the Canadian Federal Government has a long history of supporting scientific research through tax deductions since as early as 1944. The SR&ED program results from the federal government’s research-oriented attitude that has been its mission to realize the vision of advancing the country and gaining a competitive advantage globally. Through the SR&ED program, the government disburses $3 billion annually through tax credits, both refundable and non-refundable. The CRA plays a pivotal role in administering the program by defining the eligibility criteria. The process is fraught with complexities, making it mandatory for companies to engage a consultant like the bond consulting group sred to manage the application process and drive it towards a successful ending.
The cost angle
Hiring a consultant is expensive, but the cost could be affordable compared to the returns comprising tax credits, tax refunds, or grants. The consulting company will make a solid case to file your claim for the SR&ED tax credit, and you should be ready to shell out anything from a small fee to something as much as 30% of your claim value. Being one of CRA’s most lucrative but complicated programs, companies find it worthwhile to spend on the consultant to achieve a bigger benefit.
Is involving a consultant unavoidable?
It is optional for companies to file the SR&ED claim by themselves or hire a consultant to undertake the job and drive it towards success. It might not be tough to file a home-made claim which might not be as professionally prepared as the consultants yet could go through without any issues with some luck. The truth is that having your claim adjusted or enquired depends on the CRA manpower as well as the probability like winning a lottery. Much of it depends on chance and could be a matter of luck, too, because the audit rate ranges from 10%-20%. You may or may not qualify for an audit, and to increase the chances, you will need professional assistance from the experts who not only know the game but can be on the top of it to increase your chances of earning tax credits, grants, or tax refunds.
Remove the element of uncertainty
Companies that want to eliminate the chance factor to ensure that their efforts in filing SR&ED claims end on a positive note that gives buoyancy to their cash flow outsource the process of filing claim. They pass on the burden of the SR&ED audit on someone who has the experience to understand it and handle the lengthy procedure that entails going back and forth through the bureaucratic network and systems. This can save them from the disappointment of seeing their hard work end up in smoke after 6-12 months due to a reduction of the claim or its total rejection.
Any experienced SR&ED consultant offer audit defense as part of the package, which they can handle competently to see you claim sail through without your involvement at any stage of the process.
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