Important SR&ED Update- Russ Roberts, Sr. VP Advocacy, CATAAlliance
Russ Roberts talks about a lot of changes, driven by the Harper government, coming into effect in the new year. New reporting requirements around the SR&ED legislation will be effective December 31st.
As far as SR and ED goes, there is a new emphasis on due diligence:
- This is reflected in what is required in the T661 – it now requires you put in who the claim preparer is.
- The expectation is that you can demonstrate what goes into a claim actually does exist (and there are penalties if you don’t have that evidence) so make certain there is support for what you file, and the accuracy of that documentation.
- Information about the nature of the fee relationship between you and your claim preparer will have to be provided.
Many tax preparers feel the CRA inspectors will not understand the contingency relationships that companies have with their SR&ED preparers (which are usually beneficial to the client), and that this will taint the process. As well, this information is considered confidential and will be publicly available to competitor firms.
Russ says the CRA is sensitive to the complexity of the issues involved, but that does not mean there will be pain for those who are subject to some of these new initiatives.
CATAAlliance is an active participant in the formation and delivery of government framework tax policies, regulations and activities that are critical to the success of Canada’s high-tech industries. Your corporate guidance and participation are needed and appreciated as we can leverage the industry voice to be both clear and accurate for maximum effect. – CATA website
To view more CATA videos about SR&ED tax credit issues, click here.
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