How You Can Benefit From SR&ED

The SR&ED program is the largest federally funded program designed to encourage Canadian companies to create new, improved or technologically advanced products or processes. Companies of all sizes and from all sectors can qualify for tax credits or refunds based on qualified SR&ED expenditures.

Northbridge Consultants is committed to providing full service SR&ED consulting and strives to identify all eligible projects and related costs in order to maximize your claim’s return. Many expenditures may be claimed for SR&ED.

Canadian-controlled private corporations (CCPC’s) can earn a federal investment tax credit of 35% of qualified SR&ED expenditures providing that their prior year’s taxable income does not exceed the business limit. For years ending up to December 31st 2008, CCPC’s that qualify at the 35% federal rate can also qualify for Provincial Innovation Tax Credits. The rate of provincial funding for Ontario is 10% of qualified SR&ED expenditures. The provincial rate varies per province, ranging from 10% to 15% of qualified expenditures.

For 2009 claims, Ontario has introduced an “Ontario Research and Development Tax Credit.” The tax credit is non-refundable and is equal to 4.5% of the corporation’s eligible expenditures. This amount will be applied to reduce the corporation’s SR&ED pool in the taxation year following use of the credit. Stay tuned for further updates on this new legislation.

Companies that are not CCPC’s can earn a non-refundable investment tax credit of 20% of qualified SR&ED expenditures, which can be used to reduce taxes payable. Below is our example calculation of ITC’s earned for a qualifying CCPC at the 35% refundable rate for years ending up to 2008.

This refund gives your company the ability to invest further in research and development or perhaps continue with delayed or cancelled projects which otherwise might not have been funded. Your business can also grow from this return, through hiring new employees, purchasing new machinery, or expanding on the services you offer.

The possibilities are endless. Let Northbridge Consultants show you how to increase the return on your hard work and innovations. Contact us today for more information or to schedule a free, no obligation consultation.

Vision Statement

Meet Team Northbridge

Gerry Fung

Employee Spotlight: Gerry Fung

As a former marathon runner and triathlete, Gerry Fung has never run a race that he couldn't finish. His ‘never-say-die’ attitude has been contagious amongst his colleagues because he simply refuses to admit defeat.

Gerry excels at given tasks that are challenging, whether they be related to helping clients salvage poorly-filed SR&ED claims, or to escaping from a city under siege in Peru before the break of daylight. Gerry attributes his success to his holistic lifestyle, world-wide travel, a strong academic background, and extensive work experience.

Gerry is a Computer/Electrical and Biomedical engineer who holds an undergraduate degree from Queen's University, and a graduate degree from the University of Toronto. He is currently an M.B.A. candidate at Wilfrid Laurier University. Throughout his career, Gerry has interned at Nortel Networks, worked as a research assistant with the Helsinki University of Technology, owned an e-Commerce start-up business (GardenSuperMart.com), and managed a home and garden distribution business.

In his spare time, Gerry loves to experience life to the fullest. Whether it be competing in an Ultimate Frisbee tournament, attending yoga classes, delivering a talk as a keynotes speaker, or volunteering with Yonge Street Mission (a youth drop-in center), Gerry's objective is always to always to help others, while pursuing self-improvement. Consulting has always been a thrill for him. Gerry can be quoted as saying “I enjoy working with Northbridge's clients because it gives me great satisfaction to help a company achieve its business objectives.”

For Our Valued Clients

Northbridge takes pride in maintaining an unmatched level of customer service to our clients. Our account managers are evaluated based on client feedback – please complete our survey to let us know if Northbridge Consultants met or exceeded your expectations, as well as how we can improve our service to you.

Testimonials

“Northbridge Consultants helped us to continue our innovative advancements, and capitalize on our past and recent innovations. Our SR&ED return was significant, and will greatly benefit future evolvement of our business. The assistance we received from Northbridge Consultants allowed us to focus more of our resources on day to day technical development rather than the administrative requirements of the SR&ED filing process. I would recommend Northbridge to any company interested in making the best of their developments.”
- Andrew Garcia, Controller: Lynch Fluid Controls Inc.

Lynch Fluid Controls Inc. manufactures fluid power and motion control systems. The company’s business is primarily engineering, designing and manufacturing (machining) custom fluid control manifolds. Their products are used in a wide range of industries, including automotive, mining, plastics, military, medical, and more. Lynch holds distribution rights (Province of Ontario) for the Sun Hydraulics Corporation, U.S.A. and holds distribution rights across Canada for MpM electrical connectors as well as several products. Visit their website at www.lynch.ca

SR&ED Seminar

On Thursday, January 29th 2009, Northbridge Consultants will be holding our very first free breakfast seminar, to provide a meaningful information session on the SR&ED program. There will be a full catered breakfast, and the seminar is of no cost to attend. The primary focus will be to provide a complete, thorough understanding of the SR&ED process, and how companies can use this to take advantage of Investment Tax Credits for work performed within Canada. For details and information on how to register, scroll to the end of our newsletter. Mark your calendars, and RSVP soon because seating is limited!

New T661 Now Mandatory

In November of 2008, a new T661 form was released by the Canada Revenue Agency. For an SR&ED claim filed for tax years ending on or prior to December 31, 2008, the CRA will accept the new or the old version of the T661. For tax years that end after December 31, 2008, the CRA will only be accepting the new form. If you have not already done so, read about the new T661 on our website. You may also contact Northbridge for more information and assistance with questions or concerns.

• New T661 Form
• Guidelines for New T661 Form
• Q&A About T661 Form

Tips & Tricks

Northbridge Facts & Figures

SR&ED Breakfast Seminar