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Many accounting firms, particularly small to medium sized, simply do not know about the program and its constantly changing definitions for qualifications. The reality is they also do not have the in-house engineering expertise to meet all the technical, scientific, and engineering narratives that are required to successfully file a claim.
A costly assumption to make, especially when legislative changes occur every year that change the definitions for qualifying research and development-type of activities. The program in the past used to tailor to companies that were in commonly accepted research and development industries i.e. high technology, pharmaceutical, biotech etc. Since then, many changes have occurred that have broadened the definition of R&D, allowing many more activities to qualify under “Experimental Development”.
If you undertake custom projects or jobs and have to find ways to improve an existing product or make a new product less expensive, lighter, durable, more precise, or if you have to alter your internal processes to become more profitable and efficient, then these types of activities would qualify.
We do not claim the end product but rather the technical uncertainty, technological advancement, and the experimental process of investigation that took place to produce that product.
False. Unless your customer is paying you for time and materials, then you own the technical rights to the R&D claim. Most companies have fixed price agreements in place with their customers, therefore all the risk is assumed by the company that is responsible for manufacturing or developing the product.
Unless your accountants have full-time engineers with experience in preparing R&D claims, you will most likely under claim and lose significant amounts of tax credit benefits.
This program is first driven by engineering then supported by accounting. Engineering experience and competence is what determines whether a project or job can qualify under the definition of Research and Development. Once the project satisfies the requirements and is qualified, only then can costs be submitted.
Accountants are not engineers. We do not compete against accountants, but work closely with them to capture the costs for the projects that qualify. To properly prepare a claim in order to maximize the full financial benefits, it takes over 300 hours of our time plus travel. That is why we work on contingency because very few companies would elect to pay us by the hour up front and then to possibly have the claim rejected. Anything less, comprises the success of the claim and the tax credit potential. We will put in as many hours necessary to maximize your tax credit or refund without burdening your cash-flow position and consuming your budget.
Filing for an R&D claim will probably generate the highest return on investment for your organization, immediately impacting your cash-flow position and bottom line of profitability. To generate a profit that is equal to the tax credit or refund we will generate for you, usually requires sales that are ten fold in size and usually take months to conclude.
We do 95% of the work. A typical claim only requires approximately 3-4 days of your time. Once we gather all the necessary information, we spend close to 30 days at our office preparing all the technical reports. We have a proven methodology and years of experience to help you through this process without burdening your staff and resources.
The Federal Government realizes that the records and reporting systems of first time claimants will need to be improved after the first or second claim. They will accept reasonable allocations of R&D time spent by technical staff, but expect formal improvements to track R&D costs for each project in the future. We will help you design a formal reporting system, free of charge that meets the reporting standards of CRA.
The only way the government will retract any refund or tax credit is if it suspects and proves that the claim was fraudulent – claiming an R&D activity that was never undertaken. Although rare, there have been a handful of reported fraudulent cases in the infancy years of the R&D tax credit program.
Due to the size of the companies and claims we deal with, you are guaranteed to undergo a standard science and financial audit to authenticate the claim. Once your claim is audited and approved, the tax credit is final. On smaller claims, the government may choose to forego an audit and issue a tax credit without coming out to see you.
Due to the size of the tax credit claims we generate for clients, the Federal Government makes it fairly standard to audit each file to ensure its authenticity and that R&D activities were actually performed. The Federal government conducts the R&D audit in a different spirit. They want to give out money but they rightfully need to make sure the claim is legitimate. We will accompany you and defend the claim on your behalf at both the science and financial audit stages.
This is all we do. We know how to file a successful R&D claim to ensure you receive the maximum tax credit that you are rightfully eligible for. We have helped hundreds of companies throughout Canada in all industries recover millions of dollars’ worth of tax credits. After we successfully uncover a tax credit for your company, we are paid a portion of what is generated.
Yes. We guarantee our results and as we work on a contingency basis, there is no risk or upfront cost for our services. We only get paid, when you receive your tax credit or refund. If we do not recover you a tax credit the small retainer fee is also fully refundable.
By working on a no risk contingent basis, we assume all the costs associated to filing a successful claim. We work extra hard and diligently to ensure you receive the maximum benefit you are entitled to, therefore it becomes a win/win relationship. Aside from all the travel and accommodation expenses we incur at our cost and the days we spend at your location conducting discoveries and audits, the paperwork and technical requirements that we prepare offsite is painstakingly cumbersome taking on average of about 250 hours or 30 days to complete. Our customers view us as “Income Generators”. We contribute directly to your bottom line without you incurring a cost, and having to approve a budget.
We understand your concerns and yes we are not the cheapest, but our track record shows that at the end, you still receive more of a tax credit after paying us than having someone less experienced or unfamiliar with your industry file an R&D claim on your behalf at a lower rate. Sure there will always be companies that will charge less, but consequently, costs you more because you are not receiving the maximum amount of tax credit benefit you otherwise would have been entitled too.
We challenge you to find another company that has as much experience, knowledge and success as we do in this field. By using our firm, you will have one of the leading experts in the field represent your company and defend your claim.
First time claimants who try to claim on their own typically have their claims rejected in full or partially approved for a considerably lower tax credit. We acknowledge that you have qualified technicians working for you, but have they ever filed an R&D claim; do they understand the intricacies of the program; do they know how to properly word the technical narratives so the claim does not get denied; are they up to date on all the latest changes in the program; and most importantly can they dedicate over 250 hours of their time to properly file a successful claim?
Our goal after our agreement has terminated is to show you how to claim and allow you to adopt our methodology. Technology Initiative will provide all the support needed for a successful claim.
Under this program you can claim the following expenses for each project or job that is qualified for the R&D tax credit: direct labour or wages, subcontractors, percentage of overhead, and materials.
Your claim must be filed within 18 months of your fiscal year end.
The R&D tax credit is a G7 initiative dictated by the International Organization for Economic Co-operation and Development (OECD). The Canadian government views the SR&ED tax credit program as integral to remaining competitive in the global marketplace. It is only through technology and innovation that we will be able to successfully compete against the cheap offshore labour rates of the east. In addition to cheap labour rates, our government also recognizes that without providing immediate tax relief to companies that undertake technology projects that have uncertain outcomes and many risks, their future will be in question and possibly jeopardized. This tax credit program is now available in 28 different countries around the world. Everyone wants and needs these high tech jobs.
Canada gave out over 3 billion dollars in Scientific Research and Experimental Development tax credits last year.
To know more about how you can qualify for this tax incentive: GET YOUR FREE REPORT:
It will tell you exactly what you need to know about the R&D qualification process & if it actually applies to you.
Simply drop us an email with “I WOULD LIKE TO RECEIVE THE FREE REPORT” in the subject line and it will be sent to you within 24 hours.