How Small Businesses Can Utilize R&D Tax Credits in Vancouver

What are research and development tax credits, and does your business qualify for these tax credits? The scientific and experimental development tax credit, otherwise known as SR&ED tax credit, is a helpful program that will reward qualifying businesses who conduct research and development by September 1st, 2017.

Will This SR&ED Tax Credit Really Make A Difference?

How substantial is this tax credit for your company? The benefits are vast with the SR&ED program. Businesses that qualify and that are completely Canadian controlled (otherwise known as CCPCs) can claim a refundable tax credit of 10%! You may claim the 10% on either your businesses qualified SR&ED expenditures for the tax year it was conducted, or the expenditure limit (usually around $3 million), as outlined in the federal Income Tax Act.

Non-refundable Tax Credits for SR&ED

Non-refundable tax credits are also available for expenditures that exceeds the expenditure limit. These non-refundable credits are also helpful to corporations that are not necessarily eligible for the refundable credit. If you are CCPCs and are not eligible for the refundable SR&ED tax credit, inquire about the non-refundable tax credits available.

The non-refundable tax credit is calculated per the tax year and is 10% of the companies SR&ED eligible expenditure for the tax year that is either less the amount of it’s refundable credit for the given year, or any amount renounced for that tax year.

How Do I Claim My Credit?

You can claim your tax credits with the SR&ED program by completing a SR&ED tax credit form (T666) and submitting the form to your T2  Corporation Income Tax Return, In the form, you can enter the amount of non-refundable tax credits online 659 and the refundable credit on 674 of Schedule 5.

Do you need any help understanding, applying, or requesting SR&ED tax credits? Visit us as http://innotek.ca/ today for more information or call us at 604-259-9937

SR&ED Basics

The Scientific Research and Experimental Development Program (otherwise known as SR&ED) is a program that aims to promote research and developmental work. The program does this by providing federal tax incentives to Canadian businesses of all sizes and in all fields who conduct research and development within Canada. This refundable credit is especially useful for smaller or new businesses or research. These incentives are there to helps foster more research and experimental development within all fields in Canada. SR&ED in Vancouver is a great way to grow and develop experiment research and ideas.

How Much Are You Eligible For?

While the amount is relative, there are a few ballpark amounts you can receive based on your taxable income. Canadian-controlled private corporations with less than $200,000 in taxable incomes may be eligible for a investment credit of 35% that is refundable. The maximum for those who fit into this category is $2,000,000.

Other corporations or partnerships that do not fit into this category may still be eligible for a tax credit of up to 20%.

Think of it this way: if you are a corporation with less than $200,000 in taxable income, for every dollar spent, you will receive 35 cents back in the form of either cash or a tax credit. That is a large amount that will add up, and fast!

You Might Be Eligible For More SR&ED Credits

Some provinces will offer additional credits. These provincial credits are added on top of the original amount, giving you and your corporation more room for exciting research and development projects in Canada. For example, British Columbia will offer an additional 10% credit to research and development projects.

Where To Apply

Companies or individuals alike can apply for the SR&ED program and its incentives, as long as they are taxpayers. First, you must fill out a CCRA T661 form, which includes information such as your annual tax filing. You will need to have proof that these funds were for research and development. A big component for being eligible is that these projects have some degree of risk or uncertainty; the SR&ED program is here to alleviate the potential of risk.

SR&ED Consulting: How it Can Help Vancouver Business Owners

The government encourages businesses to be innovative, and offers significant incentives for business owners in Vancouver that do. SR&ED is the Scientific Research and Experimental Development program in Canada.

 

 

The SR&ED program is a federal tax incentive program, administered by the Canada Revenue Agency, that encourages Canadian businesses of all sizes, in all sectors, to conduct research and development in Canada. If you have questions, do not hesitate to contact us at 604-259-9937.

 

What is Scientific Research and Development

 

This program is generated towards encouraging Canadian businesses of all sizes, to conduct research and development that will lead to new, improved products, processes, devices, materials and more!

 

How to maximize your claim?

 

To maximize your claim possibilities you should ensure that your company’s technical leadership is consulted to analyze what projects and activities have been completed that could be counted for your SR&ED claim.

 

When you visit us at Innotek in Vancouver, we will:

• Screen your business activity
• Prepare a technical report
• Prepare all the tax schedules
• Submit the completed claim
• Provide support following reviews

Most business owners see SR&ED consulting as a time for innovation. Actually, it is not. Many innovative ideas would never qualify for an SR&ED tax credit. This is why it is a good idea to visit an expert for help and guidance.

 

A Tax credit, or refund that is actually substantial enough to change; the way a business operates, allows for new equipment, attracts new talent, rewards their staff, attend international trade shows, and better marketing budgets.

 

Interesting enough, the SR&ED program is the largest single source of federal government support for industrial research and development in Canada.

 

If you are a Canadian business owner who is interested in meeting with one of our consultants at Innotek, do not hesitate to call us at 604 259 9937 or click here to learn more today! 

 

7 Questions Vancouver Residents Should Ask SR&ED Consultants

Innotek SR&ED consultants in Vancouver will get to know your company and help by providing the SR&ED assistance you need for your business! Call us at 604-259-9937 today!

When you are choosing a consultant you don’t just want to pick the first one that approaches you, it is important that you take the time to ask relevant questions to determine if it is a right fit for your company or not.

Here are some questions you could ask:

How many SR&ED claims have you processed?

This question seems obvious but it is important that you understand your consultants filing background before accepting them. You want someone who has as much experience as possible and who is willing to work with you in case of a review.

Where does your expertise lie?

Different claims in different industries require different approaches, the consultant you choose needs to understand the industry. Be sure to ask how they approach the more technical side of the claim.

Who will prepare the claim?
Ask them who exactly will be preparing your claim, in larger organizations the senior person you met with initially does not always handle the claim.

What can I expect during the claim process?

This question will help you determine how much time and effort they will put into understanding the technical aspect of your claim. Well prepared SR&ED claims should start technical and end financial.

How does the payment work?

You have probably come to realize that there are fees attached to this SR&ED claim process. Some consultants will accept payment on a contingency basis while others will request upfront payment. How your fees are structured depends on the potential size of your claim and how confident you are in your claim consultant.

Having a hard time choosing a SR&ED consultant in the Vancouver area? Let Innotek professionals help you, call us at 604-259-9937 or click here to see how our consultants can meet the needs of your business.

How To: Obtain SR&ED Refunds in Vancouver

 

SR&ED refunds come from the Canadian Government’s Scientific Research and Experimental Development program. This program rewards companies for conducting research and development activities throughout Canada.

 

When trying to make a SR&ED claim there is some criteria that must be followed:

 

1. R&D being claimed must have taken place in Canada
2. Proof that the money was used toward the claimed project (T4’s, cheques, invoices etc…)
3. The company claiming must have ownership of the Intellectual Property resulting from the project
4. The company must be up-to-date with respect to their government financial reporting
5. The particular project expenses being claimed must have been received within the 12 months from the year-end being filed.

What determines a Eligible SR&ED project?

• Technological Uncertainty (no obvious solution to your problem)
• Systematic Investigation (removes technological uncertainties)
• Achieve Technological Advancement

 

The steps listed above may seem confusing to you, if so, it is recommended that you reach out to an SR&ED consultant in order to receive the particular refunds you deserve for your business.

 

At Innotek Consulting LTD we have a very diverse group of professional individuals that work with the Canadian Revenue Agency to ensure that your business is eligible for big refunds based on the work you perform.

 

Innotek Consultants want you to have the most hassle-free process while being successful in your tax claims, and government refunds. If you are a canadian resident looking for assistance with your SR&ED refunds call us today at 604 259 9937 or visit us online to learn more!

How To: Find the Right SR&ED Consultant in Vancouver!

 

 

SR&ED consultants in Canada work in a highly challenging market. Consultants assist Canadian companies that are looking to maximize their resources. This is done by assessing the development tax credit available from federal (SR&ED CRA) and Provincial Governments.

 

If you choose a consultant at Innotek Consulting LTD they will:

• Meet with you to identify what projects are claimable
• Determine whether you are SR&ED eligible or not
• Prepare a technical report detailing experimental activity
• Prepare all financial documents necessary (tax schedules, accounting reports etc)
• Submit documentation for your review (before sending to the CRA)

The best thing about choosing a consulting company such as Innotek is that having the help of professionals ensures that the claims process will be risk free. Innotek has consultants who share very diverse professional backgrounds such as;

• Engineering
• Technology
• Electronics
• Finance
• Information Technology and more!

Find out by working closely with a good consultant if you qualify for SR&ED tax credits. The Canadian Revenue Agency defines work that qualifies as:

 

“Work that advances the understanding of scientific relations or technologies, address scientific or technician uncertainty, and incorporates a systematic investigation by the qualified personnel.”

 

With more people becoming interested and knowledgeable about the SR&ED program, more Canadian SR&ED consulting firms are forming. Interestingly enough, choosing the right firm has a significant impact on your refund outcome as not all firms are considered equal.

 

It is extremely important to choose the correct firm for your particular needs, and desires when looking for SR&ED consultant assistance. After all, you are putting your business and livelihood at the forefront and do not want to trust just any fly-by-night consultant.

 

If you are interested in finding out what Innotek Consultants can do for you, give us a call today at 604 259 9937 or visit us online to see how our professional SR&ED professionals can help you!

How To: Prepare A Successful SR&ED Claim In Vancouver

When attempting to prepare a useful SR&ED claim in Canada, there are a variety of steps to follow. Innotek consultants LTD in Vancouver can assist in ensuring you get the most for your time and money spent each and every year!

In order to prepare a successful SR&ED ITC claim Innotek consultants will:

• Meet with you in person to screen your business activities and determine their SR&ED eligibility
• Prepare a comprehensive technical report detailing your Scientific Research or Experimental development activity
• We will prepare all of your tax schedules and accounting reports pertaining to your project’s cost
• Submit the completed claim for your approval
• Submit your SR&ED claim to the Canadian Revenue Agency (CRA)
• Provide support for all SR&ED technical and financial reviews

Who can claim the incentives?

1. Canadian-controlled private corporations

2. Other corporations

3. Individuals and trusts

4. Members of a partnership

If you are looking for an alternative way to file for claims you can contact Innotek Consulting LTD. Our consultants will work with you from start to finish and complete every step of the claims process to your satisfaction.

 

At Innotek we know filing for claims can be such a hassle but our professionals work on efficiency and we truly believe that your success is our success! Call today at 604 259 9937 or visit us online for a free consultation today!

SR&ED Consulting for Businesses In Vancouver

To qualify for the SR&ED program in Canada, you must advance the understanding of scientific relations or technologies, address scientific or technological uncertainty, and incorporate a systematic investigation by qualified personnel.

 

Innotek is a consulting firm located in Vancouver, B.C that provides advances SR&ED consulting services for Canadian businesses ensuring the best returns and outcomes possible!

 

So you may be wondering, how can a consultant help my business reach it’s full potential?

 

It is a continuous battle for businesses in today’s economy to stay competitive by minimizing costs without sacrificing investments to expand their business activities. Many companies are unaware that they are eligible for refunded expenses every year but this is a great outlet for expansion and improvement to your business.

 

Here is how the process works:

• We will meet with you to identify your claimable projects and determine SR&ED eligibility.
• Prepare a comprehensive technical report detailing experimental activity
• Prepare all financial documentation such as; tax schedules and accounting reports
• Submit documentation for your review prior to sending it to the Canadian Revenue Agency

The SR&ED program has certain standards for processing SR&ED claims in Canada, these are:

• Refundable claims- 120 calendar days from receipt of a complete claim
•  Non-refundable claims- 365 calendar days from receipt of a complete claim
• Claimant- requested adjustments to refundable claims- 240 calendar days from receipt of a complete claim
• Claimant- requested adjustments to non-refundable claims- 365 calendar days from receipt of a complete claim  

The objective of a SR&ED program is to deliver the SR&ED tax credit in a timely manner, while utilizing research and development performers to prepare claims that comply with tax laws, policies, and procedures.

 

If you are interested in finding a consulting firm that can help you contact Innotek Consulting LTD at 604 259 9937 or visit us online to book a consultation appointment today!