Science Research and Experimental Development (SR&ED) means a lot of investment and expenditure. To aid in SR&ED, financial assistance is being offered by the government to Canadian-controlled private corporations. The amount varies from $20 000 to $500 000. Corporations can hire consulting services to ensure they gain maximum benefits from the government.
A typical consultant will give free eligibility consultations to determine if a corporation is eligible for government assistance. They will focus on R&D tax credit and consulting. They will be available through out the ‘claim cycle’ which will normally include government consultations and tracking R&D refund. They will also maximize government funding using various options present in the Income Tax Act. In addition, they will provide help on intellectual property rights and patents.
SR&ED tax regulations and reporting requirements are becoming more and more complicated. It is very difficult for corporations or individuals to keep track of them. An SR&ED consultant will be able to offer their clients timely and appropriate tax advice to stay ahead of government requirements. They offer services on capital expenditures and IT credits, spotting of eligible costs and corresponding allocation of expenditure, implement CRA requirements for activities performed outside Canada, classifying relevant and allowable costs under overhead calculations and attending all SR&ED related accounts review sessions, with due preparation.
Long term partnership with a consultant provides value addition in strategic tax planning. It also helps in tracking expenditure for experimental processes, which could potentially enhance the compliance factor that is, fulfillment of all government requirements.
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