Core belief #2 SR&ED Claim Strategy Matters
Most people think that claiming SR&ED is about putting some numbers and a few words about R&D into a tax form. In reality, claim strategy is what makes a solid claim. A solid claim strategy is one that maximizes the refund and can withstand audit scrutiny.
SR&ED is about technological advancement: gaining new knowledge that may eventually enable the development of new or improved products, processes, or technologies. Because it’s about knowledge gained, there isn’t always a 1:1 relationship between your R&D projects and a SR&ED project.
A SR&ED project may consist of one or more internal R&D projects grouped together by common technological themes. The right project strategy requires a comprehensive review of all R&D projects to determine how to group (or not group) them into SR&ED projects, and at what level to present the work.
When done well, the claim captures all eligible direct and supporting work, maximizing the refund while remaining defensible under CRA scrutiny.
When done poorly, money is left on the table. Or worse, the claim may not withstand an audit.
Is your SR&ED consultant building your claim with the right claim strategy?
