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Funding Webinar- Optimizing Returns from Multiple Government Funding Sources

Domestic and international competition is forcing Canadian businesses to develop new or improved products, increase productivity and expand sales in global markets. Financing for innovation or growth has always been a challenge for many companies in Canada. Both the federal and provincial governments provide their financial support through over $20 billion in various funding programs each year. Sourcing funding from both SR&ED tax credits and other direct government incentive programs can give companies the edge they need to take their business to the next level.

WHEN: Thursday, February 11, 2016
WHERE: Online @ 11:00am EST

Learn About:

  • Types of government funding opportunities
  • Eligiblility for financing, funding, and tax credits
  • Optimizing your returns from multiple government funding programs
  • Compliance issues between SR&ED and other government funding sources

Speakers

Gerry_Small

Gerry Fung, CPA, CMA, P.Eng.
Vice President, Business Services

 

Nude Fine Art Work Shop with Steve Richard

Jen Mahon, M.A.Sc., B.Eng.Sc.
Vice President, Operations

Funding Webinar: Optimizing Returns from Multiple Government Funding Sources

We invite you to join us for our upcoming information session!

Domestic and international competition is forcing Canadian businesses to develop new or improved products, increase productivity and expand sales in global markets. Financing for innovation or growth has always been a challenge for many companies in Canada. Both the federal and provincial governments provide their financial support through over $20 billion in various funding programs each year. Sourcing funding from both SR&ED tax credits and other direct government incentive programs can give companies the edge they need to take their business to the next level.

WHEN: Thursday, November 26, 2015
WHERE: Online @ 11:00am EST

Learn About:

  • Types of government funding opportunities
  • Eligibility for financing, funding, and tax credits
  • Optimizing your returns from multiple government funding programs
  • Compliance issues between SR&ED and other government funding sources

Click here to register for this informative webinar!

Speaker

Gerry Fung, CPA, CMA, P.Eng.
Group Manager, Business Services

Upcoming Breakfast Seminar on Government Grants in Abbotsford, BC

Join us at the Abbotsford Chamber of Commerce on Wednesday, September 30th for a free breakfast and Seminar on Government Funding presented by our Regional Manager for Western Canada, Jaap Siekman, as well as the Innovation Advisor for the National Research Council of Canada Concierge Service, Erik Kaas.

Time: Wednesday, September 30, 2015
7.30 am- Breakfast and Networking
8.00 am- Presentation and Q&A

Location: Sevenoaks Shopping Centre, 2nd Floor Boardroom.
32900 South Fraser Way, Abbotsford (Enter by Chatters and Walk left)

[Online registration]

This seminar will cover a variety of options for leveraging government grants and loans in addition to a special presentation on SR&ED tax credits for Research and Development.

There exists an expanse of Canadian business funding programs targeting business growth, innovation, and workforce development, for companies in various industries, from manufacturing to digital media, plastics and chemicals, food processing, and biotechnology. Sourcing funding from various programs can give companies the edge they need to secure a competitive advantage and take their business to the next level; however, navigating through the government funding system and staying up to date with new program developments can be challenging while also trying to contend with everyday business operations.

NorthBridge Consultants has been assisting companies in accessing government funding for over 20 years. As one of the largest independent government funding consultation firms in Canada, our objective is to maximize the government funding potential for our clients in accordance with corporate objectives.
Please note that online registration for the seminar is required for catering purposes.

Summary of Provincial and Territorial R&D Tax Credits

The Canada Revenue Agency has recently released the most current summary of provincial and territorial R&D tax credits. Recent program developments by region include:

Manitoba

  • As of January 1, 2014, the definition of ‘eligible expenditures’ has been amended in line with the federal reduction in the prescribed proxy amount to 55%, and the reduction to 80% for contract payments (except contract payments to eligible educational institutions in Manitoba); however, despite the elimination of capital expenditures from the federal tax credit, these costs remain eligible under the Manitoba tax credit.
  • Currently, non-refundable tax credits can be carried back 3 years. Non-refundable tax credits can be carried forward 10 years for tax years ended after 2003 or 7 years for tax years ended before 2004 and applied against the Manitoba income taxes payable. The Manitoba 2015-2016 Budget and Bill 36 propose to extend the carry forward period for non-refundable tax credits to 20 years for tax years ended after 2005.

Saskatchewan

  • The Saskatchewan non-refundable R&D tax credit rate was reduced from 15% to 10% for all eligible expenditures after March 31, 2015.

British Columbia

  • Credit has been extended three years to September 1, 2017.

Quebec

  • As per Quebec’s 2014 budget, all R&D tax credit rates were reduced by 20% for all eligible expenditures incurred after June 4, 2014.
  • A minimum expenditure threshold has been implemented for fiscal years beginning on or after December 3, 2014. With corporate assets below $50 million in the previous year, the first $50,000 of R&D is excluded from eligibility. This minimum threshold will increase linearly up to $225,000 for corporations with assets of $75 million or more in the previous year.
  • All R&D credits (including pre-competitive research, university and public institute research, and research consortium contributions/ rights) have been standardized with the R&D wage tax credit for fiscal years beginning on or after December 3, 2014 to a base rate of 14% (CCPCs with assets below $50 million will qualify for a rate of 30% on the first $3 million of eligible expenditures).
  • In line with amendments to the federal SR&ED tax credit, capital expenditures incurred after 2013 are not eligible. In addition, claims filed after 2013 will be subject to a $1,000 penalty for missing, incomplete, or inaccurate information.
  • As of June 4, 2014, the 10% increase in the R&D wage tax credit for biopharmaceutical corporations is eliminated (previously qualified corporations will continue to receive the benefit at a decreased rate of 8%)

 

The following table provides a breakdown of provincial R&D tax credits as of June 30, 2015.

 

Province/ Program Rate Deadline
Newfoundland and Labrador 15% refundable 12 months after year end
Nova Scotia 15% refundable 18 months after year end
New Brunswick 15% refundable (expenditures incurred after 2003)10% non-refundable (expenditures incurred before 2003) N/A
Manitoba 20% non-refundable (expenditures incurred after March 8, 2005)15% non-refundable (expenditures incurred before March 9, 2005); however, the 2010 Budget extended refundability of the Manitoba R&D tax credit to one-half of eligible expenditures for in-house R&D expenditures not undertaken by an institute in Manitoba and incurred after 2012) 12 months after year end
Saskatchewan 10% non refundable (expenditures after March 31, 2015)15% refundable for all eligible expenditures occurring between March 19, 2009 and March 31, 2012 N/A
Alberta 10% refundable (on up to $4 million in eligible expenses) 15 months after year end
British Columbia 10% non-refundable; refundable for CCPCs up to 10% of the expenditure limit 18 months after year end
Yukon 15% refundable 12 months after year end
Ontario Innovation Tax Credit (OITC) 10% refundable (annual expenditure limit of $3M: Phased out if taxable paid-up capital (PUC) for previous year exceeds $25M or is between $500,000 to $800,000; expenditure limit is eliminated when PUC reaches $50M) N/A
Ontario Business-Research Institute Tax Credit (OBRITC) 20% refundable (qualified expenditures are capped at $20 million annually among associated group of corporations) N/A
Ontario Research and Development Tax Credit (ORDTC) 4.5% non-refundable N/A
Quebec
R&D Wage tax credit; Tax credit on fees paid to a research consortium; Precompetitive tax credits
14% to 30% (after June 4, 2014)17.5% to 37.5% for costs incurred between April 22, 2005 to June 4, 2014  N/A

 

The New Claim Review Manual

Along with the other changes that the CRA has been implementing over the past couple years, the Claim Review Manual has been updated. This is the manual that tells the CRA reviewers what processes they need to follow when reviewing an SR&ED claim. This review manual is meant to make the review process more consistent from review to review, and from reviewer to reviewer. It sets out clear guidelines as to what is to happen in a review, and what kind of timeline the reviewer should be following when working on a claim. The manual is also supposed to increase the co-ordination between the technical and financial reviewers, and to increase the communication quality between the reviewer and you (the claimant).

The CRA’s website has laid out the steps to a review, as listed in the CRA Review Manual. A brief overview follows:

  1. Preparing and planning:
    • Reviewing your claim
    • Identifying issues with your claim (ie – areas they are unsure can be considered SR&ED)
    • Making first contact with you
  2. Conducting a site visit:
    • Preparing for the review (the reviewer will contact you by phone or letter to discuss when the review will happen)
    • Preliminary review work (interviewing any possible staff involved with the SR&ED work, explaining the SR&ED program, etc)
    • On-site review (tour of the facilities, interviewing staff involved in the SR&ED work, reviewing supporting documentation)
    • Request for more information to be sent to the CRA reviewer
    • Communication of preliminary decisions (if possible, the reviewer will let you know what kind of results to expect from your claim submission)
  3. Finalizing results:
    • SR&ED review report (prepared by the CRA for you, to allow you to review it and provide any new information if you disagree with their assessment)
    • Finalization of technical and financial reports (these reports will be sent to you by mail, be delivered in a meeting, or discussed over the phone)
    • Dispute resolution (if you disagree with the CRA’s final report)
    • Appeals process

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