DENIS R. BOULAY, B.S.A., C.G.A

1. How does the Program work?

• First, your Company spent money and performed R&D work.
• Second, your Company claimed the benefits, which is the Investment Tax Credit (ITC).
• Third, Canada Revenue Agency (CRA) verifies your claim.

2.What is SR&ED?

    Scientific Research and Experimental Development (SR&ED) is a Systematic Investigation or search carried out in a field of Science or Technology by means of Experiment or Analysis.

3. What type of work or research is eligible as R&D?

    The work or research that is being made with the intent to achieve a technological advancement for the purposes of Creating New or Improving Existing

• Devices
• Material
• Products
• Processes
• Incremental Improvements may also qualify

4. What are the ways that R&D can be performed?

It can be performed:

• Internally by the company personnel
• Externally, on a contract basis by a Sub-Contractor
• By Third Party Payment such as a University

5. Can R&D be performed in which Field of Science and Technology?

The fields of Science and Technology may include:

• Electronics
• Computer Sciences
• Food Sciences
• Agriculture
• Plastics
• Aerospace
• Automotive
• And many more

6. What Fields or Areas are not included in the SR&ED Program?

The Fields of Science and Technology not included are:

• Social Sciences or Humanities
• Market Research or Sales promotion
• Quality Control
• Routine testing, data collection, engineering or design
• Style changes
• Commercial production or use
• Prospecting, exploring, drilling for or producing minerals, petroleum or natural gas

7. What are the Criteria that help identify the presence of R&D work in a project?

Every R&D Project must have the following three Criteria therein:

• Advancement
• Uncertainty
• Content

8. In an SR&ED Project, what is Advancement?

    It is the work that advances our understanding of Science or Technology beyond standard practice. Innovation alone is no sufficient and the work has to be carried out by qualified personnel.

9. In an SR&Ed Project, how do we identify Uncertainty?

    In an R&D Project, uncertainty arises when it is not known on the basis of normally available Scientific or Technological knowledge or experience if or how a given objective can be achieved.

How can a specific Technological problem be solved?

    Failure does not necessarily indicate uncertainty since attempt to solve problems should be made by qualified personnel.

10. In an SR&ED Project, how do we achieve Content?

    The content in an R&D Project is achieved by a Systematic Investigation going from hypothesis through testing by experimentation or analysis to a statement of conclusion.

    The work needs to be performed by qualified personnel with suitable experience.

    The work also needs to be supported by dated documentation that outlines the process and result.

Note: Documentation and/or a journal of progress must be created during an SR&ED project.

• To encourage R&D in Ontario
• Provide up to a 10% refundable Provincial Tax Credit
• For the Federal SR&ED program, OITC is Government Assistance and reduces the expenditures eligible for Federal ITC.

1. How does the Program work?

2. What is SR&ED?

3. What type of work or research is eligible as R&D?

4. What are the ways that R&D can be performed?

5. In which Field of Science and Technology can R&D be      performed?

6. What are the Fields or Areas not included in the an      SR&ED Program?

7. What Criteria will help identify the presence of R&D      work in a project?

8. In an SR&ED Project, what is Advancement?

9. In an SR&Ed Project, how do we identify Uncertainty?

10. In an SR&ED Claim, how do we Project or Identify       Content?

11. What Supporting Documentation and/or Evidence is       acceptable to support an R&D project claim?

12. What is Ontario Innovation Tax Credit (OITC)?