If you’ve submitted a SR&ED claim before, you’re likely quite familiar with the following questions:
“Was there technological uncertainty?”
“Did the process result in a scientific or technological advancement?”
These criteria have been part and parcel of the SR&ED documentation process since its inception. However, more recently, additions have been made to SR&ED guidelines that place an increased onus on claimants to demonstrate that their projects adhere to the definition of Scientific Research or Experimental Development. In order to qualify for the SR&ED program, the project must engage in systematic investigation that follows the scientific method. This means that from now on, when documenting your SR&ED activities, it is important to keep track of not only the technological uncertainties your project addressed and the resultant advancement, but also the detailed process of hypothesis formulation, planning, and necessary modifications.
So, if you’re thinking about SR&ED, here’s a few best practices to keep in mind:
- Make sure to clearly state your hypothesis in your SR&ED documentation, and refer back to it throughout your claim.
- In your submission, clearly identify the ways your hypothesis was formulated, tested, and modified.
- As always, maintaining contemporaneous documentation of your SR&ED project is highly recommended, as it will streamline the claim process significantly at the end of your fiscal year. Make sure you track how your hypothesis changes over time in this documentation to ensure seamless integration into the final claim.
Keeping up-to-date with the changes to the SR&ED program is crucial if you wish to optimize your returns from the SR&ED program. At Northbridge, we keep track of these changes so you don’t have to. Call us today for more information: 519.623.2486