FREQUENTLY ASKED QUESTIONS
Q. 1. Why didn't
my accountant tell me about the SR&ED program?
A. Your
accountant may not have known that you are eligible. Furthermore, he
may not have the expertise to prepare a complicated SR&ED claim.
Any credible accountant, however, will attest to the legitimacy of the
program, when asked.
Q. 2.
Why didn't the government tell me about the SR&ED program?
A. The
government will not fill out your tax return for you, or make an effort
to inform businesses that they have unwittingly over-paid their taxes.
However, the program is not hidden. We do direct potential clients to
the official CRA website where they can learn about the legitimacy of
the program, and even attend a free government-sponsored seminar on the
topic.
Q. 3.
Will this trigger an audit?
A. You
are doing everything possible to avoid an audit, and we are
recommending a course of action that could invite one! But the
SR&ED department and CRA audit are physically separated and their
administrations are purposefully disconnected in order to avoid
deterrence from the program. SR&ED auditors do not report any
non-fraudulent findings to other CRA departments, and do not
investigate other areas of corporate activities, such as health, human
resources, taxes collected, etc.
We also remind clients that it's
just a claim, which is significant. The worst case scenario is that the
claim is rejected or withdrawn, but there are never penalties
associated with either of these options, as long as you have not
committed a fraud. You should also realize that you have nothing to
lose. In worst case scenario is that you receive no refund and
pay no consulting fees. You cannot lose. It's a "no brainer".
Q.
4. What if I don't pay corporate taxes?
A. Think
of SR&ED as an "expenditure credit". Small and medium sized
companies receive refunds, plus interest, even if they didn't pay
corporate taxes. Sounds too good to be true, but it is true. You need
to be up to date on your government remittances, however, in order to
receive your refund.
Q. 5.
How much time will this take?
A. Simply
SRED makes
every effort to facilitate the process and make it as painless as
possible. You will need to spend a few hours with us, and provide
financial data with which we tabulate your claim, but
your Simply SRED consultant will take care of the rest.
Q. 6.
Do I need to have a laboratory or sophisticated facility in order to
qualify?
A. No.
CRA recognizes shop-floor technology. We have clients that are cabinet
makers and sausage makers. If you conduct experimentation and attempt
to solve problems during the course of your work, then you could be
entitled to a refund, regardless of your premises or education.
Q. 7.
Do I need to have documentation?
A. It's
definitely better to have documentation, but we will assess your claim
based upon what you have, and provide you with the tools and training
to document better in the future. CRA knows that first time claimants
may not have known about the program, as it's retroactive 2 years.
Q. 8.
Do you have references?
A. Simply SRED has many
references. Just ask.
Q. 9. How long
does it take to get a refund?
A.
Every case is different. It could take 8 weeks, or 2 years. But most
claims are approved within 4 months of submission to the government.
Now the federal and provincial governments are harmonized, so
processing is quicker.
Now think about it. What are your competitors doing with THEIR refunds?