25 times more notices of opposition in SR&ED than in 2007

Temps de lecture : 1 min 9s

1970-01-01 00:00

In an article published in The Globe and Mail, we learn that the number of notices of opposition by tax payers claiming SR&ED credits has increased by a factor of 25 between 2007 and 2014. It is a direct result of measures to tighten the program started by the Canada Revenue Agency in 2008. The notice of opposition an administrative mechanism which allows a tax payer to object to a decision taken by the Agency, and is a required first-step before suing the CRA at the Tax Court of Canada.

In the last few years, the CRA has increased its requirements relating to documentation and to following the scientific method during SR&ED projects. The new audit procedure reflects this approach with the use of the five key questions.

Another sign of the increased difficulty of claiming SR&ED credits is the number of new cases in front of the Tax Court of Canada. In 2014, it jumped to 42 from only 20 in 2012. In total, it’s 80 cases regarding SR&ED that are waiting at the tribunal.

To avoid being a victim of these statistics, it is important to put in place a good work methodology, including maintaining sufficient documentation and hypotheses and hours logs. Do not hesitate to contact Emergex for any help. We offer, at no charge, a specially designed timesheet system to compile SR&ED activities and hours.

Contact us

Other post

Emergex Coach RSDE
2024-08-28 08:45

Seminar on the technological aspects of the SR&ED program (in French)

Can you claim hours spent for project management, for training or for writing documentation as eligible SR&ED expenses? Do you know how to define the start of a SR&ED project? Must you absolutely use a timesheet system to claim SR&ED? Can you claim work done by a subcontractor? What tools can you use to simplify […]

Read more
2024-05-09 15:00

Workshop: Maximizing SR&ED Tax Credits While Navigating Complexities

Are you confident that you have all the answers when it comes to Scientific Research and Experimental Development (SR&ED) tax credits? Whether you’re the CEO, CTO or CFO of a successful technology company or established manufacturer, navigating the complexities of SR&ED can be daunting, potentially resulting in missed opportunities to optimize returns. Join us for […]

Read more
Dollar Circuit
2024-07-03 09:00

Seminar on the financial aspects of the SR&ED program (in French)

Is a bonus paid to a specified employee an eligible SR&ED expense? Does your taxable income have an impact on the rate of the tax credits and on your eligibility for a refund? Is the salary of an administrative project manager eligible as a SR&ED expense? How do you structure a contract with a subcontractor […]

Read more