Dear Clients and Partners,
In the context of the COVID-19 pandemic, rest assured that Emergex SR&ED Consultants gives priority to the health of its employees, customers and partners.
Despite this, Emergex remains 100% operational. We are committed to working with you to meet the milestones and deadlines planned with our clients as well as the limit dates prescribed by governments, always with the quality of deliverables to which you have been accustomed. To achieve this, we offer the following procedures and solutions:
- With your collaboration, we will respect the technical interview dates and the delivery deadlines for your claims. We hope to prevent everyone from postponing work until later, thereby creating a backlog and additional stress in the months to come. Indeed, the crisis could last a while and we should not count on the postponement by the governments of the deadlines for tax credit claims…
- For any meeting or technical interview already scheduled with an Emergex employee, we will contact you the day before or the same day to confirm that you have no last-minute changes. We offer you alternatives in order to carry out your project for claiming tax credits or subsidies:
- Hold a videoconference with our Zoom service licence https://zoom.us, which allows to share our screens to facilitate discussions and visual exchanges with our contacts
- Make a conference call to one or more parties using one of our 3 “virtual meeting rooms” which offer excellent audio quality
- Note that due to the rules of social distancing also in effect for government employees, claims requiring meetings with the Canada Revenue Agency or Investissement Québec are subject to postponements beyond our control.
- All Emergex employees are already equipped and familiar with working remotely from home, including holding videoconferences and teleconferences.
- In all cases, Emergex and its employees will do their part and apply the recommendations communicated by the public health authorities.
Hopefully, the entire population will continue to participate in the health guidelines issued to curb the spread of COVID-19. This fight can only be won with the contribution of all the actors and stakeholders in Quebec and Canadian society.
CEO and founder of Emergex SR&ED Consultants
Last February 3, the Quebec government boosted Investissement Québec’s responsibilities and powers, expanding its mandate according to three main priorities:
- Greater and more efficient and more effective local presence
- Enhanced international coordination
- Greater assumption of financial risks
This new vision will be implemented over the coming months and will cover all regions of Quebec, and will see various entities brought under a single umbrella. At the end of this transition period, Investissement Québec will have incorporated the MEI (Ministère de l’Économie et de l’Innovation), the CRIQ (Centre de recherche industrielle du Québec) and Export Québec into a single entity. At the end of the change period, all the programs currently handled by each of these organizations shall be administered by Investissement Québec.
The most significant changes will be seen in the regions, where Investissement Québec will become the single point of contact for companies seeking funding. This will optimize processes and give companies easier access to different forms of assistance to help them develop and grow.
At the international level, the amalgamation with Export Québec will attract greater foreign investment and enhance both the province’s image and its exports through a better coordination of all community stakeholders.
Nationally, Investissement Québec will be taking on greater financial risks as it undertakes major forward-looking projects in a bid to speed up investments and thus increase the productivity of Quebec companies.
As for us here at Emergex SR&ED Subsidies, as well as for out clients, no significant changes are currently anticipated. No changes have been made to the popular Tax Credit for the Development of E-Business (CDAE). The same goes for the Tax Credit for the Production of Multimedia Titles (CTMM). We are still preparing claims under these programs exactly as we have been doing for the CDAE since it came into being in 2008, and for the CTMM, since 2003, that is, for 17 years!
To read more about the enhanced role of Investissement Québec, see the official press release.
Emergex SR&ED Consultants is always on the lookout for new sources of funding from governments. As the new decade starts, we have good news for you!
Indeed, the government organization Prompt Québec makes two specific grant programs available to companies in the information and communication technologies (ICT) industry, namely:
Quebec Cybersecurity Innovation Program
If your company operates in the field of cybersecurity, the Quebec Cybersecurity Innovation Program can grant you up to 25% of the budget of your cybersecurity innovation project in the form of non- refundable grants. You could also apply to this program for the cybersecurity phase of your software development. Application to this grant is open until March 18, 2020. In addition, a webinar given by Prompt discussing the program in detail is scheduled on January 22nd. For more information, please contact the program coordinator, Mr. Nicolas Maignien at 514-875-0032 #20 or by e-mail at firstname.lastname@example.org.
Prompt AI – Innovation Program
The Prompt AI – Innovation Program (only available in French) funds a portion of expenditures for Artificial Intelligence (AI) projects. This financial assistance is usually provided by means of non-refundable grants of up to $150,000 per company involved in a collaborative innovation project. Companies may file an application until January 31, 2020. For any questions about this program, please contact Mrs. Sourour Ben Cheikh at 514-915-6334 or by e-mail at email@example.com.
Deadlines for both programs may seem very short, but the team at Prompt will assist you throughout the application process.
If you are interested in one of these two grants and think you can qualify, do not hesitate to contact the program manager at Prompt, indicating that they have been referred to you by Emergex RSDE.
For any other tax credit, grant or government assistance, Emergex remains your partner of choice! We can accompany you both in (1) the selection process of the different programs that best meet your needs and (2) attaining the best possible return on investment by combining these programs.
We are proud of our clients’ achievements! Emergex successfully claimed the SR&ED tax credits for Mariner Endosurgery in the last few years, enabling them to stretch their investment dollars and accelerate their research and development efforts in the medical field.
Mariner Endosurgery Wins FDA Clearance for Ground-breaking Augmented Reality Surgical System LaparoGuard
Washington, DC, Dec. 13, 2018 (Globe Newswire) — Following months of review, the US Food and Drug Administration cleared Mariner Endosurgery’s LaparoGuard Augmented Surgical Navigation system for use in US operating rooms. Hospitals and surgical facilities will now be able to incorporate this game-changing surgical navigation system from Mariner, the Canadian medical device company innovating in advanced surgical visualization and laparoscopic instrumentation.
LaparoGuard is an augmented surgical navigation system that enables surgeons to annotate areas of 3D safety zones during minimally invasive procedures, to aid them in guiding their tools and to inform them in their surgical approach. Similar to the heads-up display of a fighter jet, LaparoGuard allows surgeons to annotate areas of risk, and then see 3D renderings of surgeon-defined safety zones as a real-time image overlay, without looking at a separate screen. This information is integrated into the operating room’s conventional visualization equipment and provides surgeons with additional spatial awareness information. In addition, LaparoGuard provides continuous tracking of multiple tools throughout a procedure for real-time location updates within the abdominal cavity.
LaparoGuard enables a surgeon to:
- Annotate areas of risk intraoperatively and display surgeon-specific safe zones to enable optimal tool path and spatial awareness during laparoscopic cases.
- Select a mix of audiovisual augmented reality on both primary and secondary surgical monitors, without the use of a conventional AR headset.
- Intuitive real-time feedback systems to inform the surgical team without adding distraction or removing focus from the intended surgical site, while providing advanced visualization.
- Integrate novel technology into existing clinical workflows and conventional laparoscopic tower equipment.
“LaparoGuard empowers surgeons with the latest in advanced visualization, augmented reality and spatial awareness tools for minimally invasive procedures,” explained Mitch Wilson, President of Mariner Endosurgery. “Our upcoming pipeline of surgical visualization and advanced laparoscopic instrumentation will further support LaparoGuard and our company thesis of putting the right innovation, at the right time, in surgeons’ hands. I am proud of our team’s efforts as we look forward to seeing LaparoGuard successfully deployed in operating rooms across the United States.”
Source: New navigation system brings surgeons unprecedented 3D spatial awareness during minimally invasive abdominal procedures
Mariner Endosurgery Inc. is a Hamilton-based company that develops and commercializes innovative computer-assisted medical devices for future-facing laparoscopic surgeries. Their flagship product LaparoGuard is a novel soft-tissue surgical navigation platform that augments visualization and is designed to enhance the safety profile to assist surgeons in delivering a superior quality of care to their patients.
Emergex SR&ED Consultants is a consulting firm specialized in financing technology companies through claims of Scientific Research and Experimental Development (SR&ED) and E‑Business (CDAE) tax credits, the Industrial Research Assistance Program (IRAP) grant and other government aids. For 20 years, Emergex has been helping its clients receive hundreds of millions of dollars in government tax credits and grants.
Our team of industry experts (PhD, MSc, BSc, MBA, PMP, engineers, computer scientists, accountants and tax experts) have mastered the specific technologies of each industry and the related legislation to support our clients from A to Z in the claim process.
Emergex is proud to contribute to Mariner Endosurgery’s continued success!
On November 14, 2018, Pierre Savignac, CEO of Emergex SR&ED Consultants gave a webinar entitled “How to prevent, or else survive, an audit of your SR&ED tax credits by the CRA ?” in partnership with Inno-centre. The recording of this webinar is available below:
Mike C. Evans, one of Emergex’s client managers based in our Toronto office, was asked for an interview by a journalist from Tech & Design. The article written provides an introduction to the government program of tax credits for SR&ED, as well as its challenges, especially for startups. Emergex is mentioned several times, especially for its ability to assist startups and other companies of all sizes in the claims process. Emergex also plays a role of education for startups, which by definition would be the first beneficiaries of SRED, but often do not know the program. Here’s an excerpt of this interview:
If you’re a startup developing experimental technology – and that’s most startups in Canada – the government wants to help you recoup a good chunk of the costs that come with cutting-edge R&D.
Administered by the Canada Revenue Agency, the Scientific Research & Experimental Development program (SR&ED) offers a tax credit for eligible R&D expenses. The program has no fixed budget, so all eligible claims are approved. Mike Evans, Client Manager for SR-ED consulting firm Emergex, says that in 2012 alone the program processed 25,000 claims worth $3.6 billion in tax credits.
“The government is helping innovation in Canada by reimbursing some of the R&D investments that these companies have made,” says Evans. “SR&ED has been around for 25 years and yet, believe it or not, you’d be amazed how many people don’t know about it, and worse, how many think they’re not eligible.”
Emergex, which has been in this business for 20 years, helps tech startups determine their eligibility for SR&ED claims, and as well to put together and file those claims.
There are two parts to a claim. The first contains a 1400-word technical narrative describing why the R&D in question is eligible. The second part consists in a financial data collection that must be carefully right-sized (neither too much nor too little) to make sure the dollars being claimed match and support what’s actually been done. Success means recouping about 68% (for Ontario) of eligible salaries and in some case bonuses. A rejection or mishandled claim could lead to an audit, which Emergex is also well-equipped to defend.
“The biggest mistake startups make is when they try to file a claim themselves,” says Evans. “It’s a skilled, complex, sophisticated process. It’s not like filling out a T1 for your income tax return and 20 minutes later it’s done.”
Both parts are challenging. The technical narrative may seem straightforward, but “it’s where most of the claims are denied,” Evans says. “It’s knowing how to describe the technology in a way that meets some basic criteria: did the company have to overcome any technological uncertainties? Were there obstacles that had to be overcome that couldn’t be fixed by off-the-shelf solutions?”
The next step is to determine the number of eligible hours, a process which can often stall the claim. “What we find is that, especially with the smaller companies, they’re busy building and selling their product, and they’re not always the best administrators and accountants. So when we ask them to extract and compile the numbers – in other words, the efforts invested in hours and how much they pay people – that can be a challenge because they have no records, or poor records.”
A big hurdle Emergex is working to overcome is the 42% of companies that could file for SR&ED just don’t (according to Canada Revenue Agency’s own statistics), for lack of knowledge.
“Just about anybody that is a startup could be eligible,” says Evans. “They’re innovators who believe they have an idea that’s new, or else they wouldn’t be doing it. So by definition that means they could be eligible for SR&ED, and I wouldn’t discourage anybody from giving us a call and inquiring.”
You can reach Mike Evans by e-mail at firstname.lastname@example.org or by phone at 905-849-3033 #645.
Our Client Manager based in our Toronto office , Mike C. Evans, was asked for an interview by Tech & Design. This article, published on June 10th, provides an introduction to the government program of tax credits for SR&ED, as well as its challenges, especially for startups. Emergex is mentioned several times, especially for its ability to assist startups and other companies of all sizes in the claims process, but also for its work of information with startups, which by definition would be the first beneficiaries of these grants, but often do not know the program.
The Government Is All But Giving Away Money To Startups – And You’re Missing Out
Is increasing your sales one of your resolutions for 2016? Well, you’re not alone! Now is the time to start exporting outside Canada. Good news: the federal government can help.
After the Quebec government’s assistance program (Export Program), whose budget was exhausted before all applications could be met, it’s the federal government’s turn to institute a grants program to help Canadian businesses export their products. We’re talking about the new CanExport program, which officially launched on January 5, 2016, and will help small or medium-sized businesses to exploit export opportunities. This grant can refund 50% of expenses, up to $99,999.
Eligible activities covered under the program include:
- business travel abroad
- participation in trade fairs and trade shows
- market studies
- adaptation of marketing tools to new markets
- legal fees related to distribution or agency agreements
- have between 1 and 250 employees
- have no less than $200,000 in annual revenue declared in Canada
CanExport is being co-delivered by the Government of Canada through an administrative arrangement between Global Affairs Canada’s Trade Commissioner Service (TCS) and the National Research Council of Canada’s Industrial Research Assistance Program. CanExport is a five-year, $50-million program. This generous program will very likely be a huge hit, so you’d better hurry before the funds run out!
For more information
Emergex SR&ED Subsidies, the expert in SR&ED and E-Business programs (CDAE), can guide you to its partner specializing in claiming this grant and related services. Contact us for an introduction.
The SR&ED credit program attracts many companies operating in various sectors, from IT through life sciences to manufacturing. Rather than accelerating the processing of inspections, which are becoming ever more numerous, by boosting its teams, the Canada Revenue Agency seems to have adopted a strategy of extending processing times.
Is the CRA further removed from the reality of companies that develop R&D ? This is the question that comes to mind upon considering the new requirements which have to be met by companies which are not always prepared to do so. The government’s scientific research and experimental development program has been refined over the last thirty years, becoming more precise, but also, more complex. Out of necessity, an entire industry of consultants has grown to help companies. For the last two years, the industry has seen a real explosion in the number of verifications, as well as cuts, which are sometimes huge. On top of this, processing times for claims has been increasing. This can easily be explained: not only does the Canada Revenue Agency impose stricter criteria, it also lacks adequate human resources. The result? An extension of response times, which sometimes take up to a whole year! This can be clearly damaging to a start-up and its cash flow. To survive this severe blow, some companies turn to the services of specialised tax credit pre-financing companies, such as R&D Capital.
An ever increasing number of companies which used to prepare their SR&ED statements by themselves are receiving a letter from tax authorities informing them that they have to undergo an eligibility examination. This audit can easily become a nightmare. With the government’s requirements becoming even more stringent, some companies are simply unable to cope. Today, technological projects which would have been easily accepted in the past are rejected. Sometimes, even its cuts reach up to 100%! This means a total loss for the company.
Due to this radical hardening of the position of the CRA, R&D firms of all sizes are discouraged and just give up. They simply abandon the program, setting aside thousands of dollars owed to them. Others, on the contrary, decide to take the bull by the horns and seek the help of professionals. These SR&ED tax credit consultants have acquired enough expertise to make all the difference. Such is the case with Emergex SR&ED Subsidies which, thanks to its technology and taxation experts, is capable of taking charge of the entire SR&ED tax credit claim procedure, while rapidly adapting itself to constantly evolving constraints. Emergex can equally take over a problematic file prepared by another resource, and then rework and realign it so as to defend it during examination by the Canada Revenue Agency’s auditors. As Pierre Savignac, President and Founder of Emergex SR&ED Subsidies, which also claims e-business development tax credits (CDAE), explains, “An increasing number of companies are coming to us for help with their CRA inspections“.
With the hours and hours that must be devoted to each SR&ED tax claim, the CRA’s ever more stringent requirements, the increase in the number of verifications, endless processing delays, Revenue Canada seems to be moving further away from the realities of SMEs, whereas this grants programs is intended for them. SR&ED professionals firms offer a secure and effective solution for innovative companies.
For more information: www.emergex.com | Montreal 514.765.3333 | Quebec 418.907.9254 | Toronto 905.849.3033
A recent study reveals that almost half of startups don’t take full advantage of available government funding such as Scientific Research & Experimental Development (SR&ED) tax credits and Industrial Research Assistance Program (IRAP), even though they allow companies to recuperate a large portion of the salaries invested in R&D. One of the reasons given for not applying to these programs is the fact that many entrepreneurs believe that they are too small to invest time and money in such an endeavor. However, with the help of experts like Emergex, it is possible for very small companies to apply to these tax credits and subsidies with an investment on only a few hours by the entrepreneur.