July, 2009

Message from the CEO

It’s hard to believe that we are already halfway through 2009. We’ve seen a lot of exciting growth in our company so far this year, and are, as always, committed to the superior customer service that you have grown to expect from us. As a result of our growth, we are also gaining more exposure both as a company and for the SR&ED program on the whole.

As has been mentioned in previous newsletters, we’ve been having regular seminars, and we’re very excited to say that we’ve seen much success with both of our Southwestern Ontario and Atlantic Canada seminars. These seminars have given us the opportunity to see many new faces and work with more people to benefit some of Canada’s leading industries. We are looking forward to continuing on with our seminars, and holding them in across the country.

Recently, Northbridge has been involved with, and has written for, a number of different magazines. We have had Business Development Managers author articles in both the June issue of Exchange Magazine, and the July issue of Image Makers Magazine. We are looking forward to being involved in an issue of the Food Safety and Quality trade magazine. Canadian Plastics has also interviewed us for an article that will be appearing in their July/August issue that shows how beneficial the SR&ED program can be to members of the plastics industry.

As always, Northbridge Consultants continues to be a member of a number of different organizations as well – both the Cambridge and Hamilton Chambers of Commerce, we are a member of the Ontario Food Protection Association and are an Accredited Business of the Better Business Bureau.

With this exposure, with our growth, and as members of respected business organizations, Northbridge Consultants are known as experts in the SR&ED field, and we are confident that we will continue to work with you to offer you the best support for your SR&ED claims.

Best Regards,

Sol Algranti
President & CEO
Northbridge Consultants

Calendar of Events

Employee Spotlight: Norm Nicol

One of the many talented members of Northbridge is Norm Nicol, who has been in Sales and Marketing for over 15 years. Norm has advised small, medium to large companies in a variety of industries and has been with Northbridge for the past 3 years.

Originally trained in Illustration and Commercial Art then eventually in Marketing and Sales. Norm has had a variety of experiences from which he pulls from industry, retail and b2b ventures. As well as developing sales for Northbridge, he also assists in the marketing efforts with the seminars and newsletters.

A devoted husband and father of 3 wonderful girls, Norm and his wife’s devotion are felt in the family’s extracurricular activities — such as Girl Guides, Ballet, Jazz and Schools Parent Council. Norm says, “After an 11 hour save of our children’s school, where my wife and I canvassed the neighbourhood and local businesses for support, we decided to be a part of the Parent Council so that something like this would never happen again!” Four years later and the school is still here.

“What I like about Northbridge is that it is always something different. One day I could be talking to a shoe manufacturer and the next a biotechnical firm, both with an equal opportunity to benefit from SR&ED. When you know that you have helped a company to keep people working, well that is the greatest job satisfaction I can have!”

Northbridge News

SR&ED Seminars

The next information seminar is just around the corner and scheduled for July 9th in Oakville, Ontario at the prestigious Glen Abbey Golf Club located on Dorval Road. Please go to www.northbridgeconsultants.com for updates on upcoming seminars and other news and events.

If you have any questions pertaining to anything SR&ED related, or about any of our seminars, please do not hesitate to contact us by email at info@northbridgeconsultants.com or by phone at 519.623.2486.

Northbridge expanding West

Northbridge is continuing to grow and become a presence across Canada. During the month of May an office was established in Nova Scotia. The month of June saw the focus turn westward with the addition of Vancouver clients. We are very excited about the expansion and will continue to look to grow business in all corners of the country.

Ask the Expert

Dear Northbridge Consultants,

Thanks again for helping us through our 2008 filings, we had more projects than we thought!!

A quick question ... Why does PEI not have as many tax credits as other provinces for R&D costs? While we are based in Nova Scotia and it does not affect us right now, we are planning to open a satellite plant in PEI at some point over the next couple of years. Through one of our QC Techs, I learned there is potentially a BIG difference between the amounts you are allowed to claim for SR&ED and it actually varies from province to province! Why would there be such drastic differences and are there any plans for the government(s) to standardize the system to make it fair and equal for all across Canada?

Thanks in advance,

Anonymous

Dear Anonymous,

Thank you! Great two-way-communication leads to more identifiable projects and more money back from the taxman.

Your technician is correct. There are significant differences in the claim percentages between the provinces. As you probably know, there is a Federal rate capped at 35% on SR&ED projects and it is the provincial rate which varies from a low of 10% to 15%. Alberta, BC, and Ontario all get the minimum 10% provincial component on top of the 35% federal; Nova Scotia, New Brunswick, Yukon, Saskatchewan and Newfoundland get a higher rate of 15%. Manitoba gets a 20% provincial boost while, in the lead, Quebec gets anywhere from 17-35% in addition to the federal component (depending on company revenues etc.). Quite the difference.

Unfortunately, PEI and Nunavut get no provincial component at all - at least not that most people and companies know of. There are certain “incubation sites” (government sanctioned R&D hotspots). If a company sets up shop, with provincial approval, in these specially classified areas they are eligible for a 10-15% provincial SR&ED tax credits. If you are interested in getting more information on these areas in the two provinces please give us a call or email us at info@northbridgeconsultants.com.

Currently, we do not know of any provincial initiatives which would create a ‘universal’ provincial SR&ED program across the board. While the SR&ED program is not equal to all who apply, we feel it is “how” you file a project claim which results in an optimal return for each company. We would love to see our industry partners in PEI one day get a full provincial component like everyone else, and have been working to get the ball rolling. In fact, Northbridge representatives have met with the Deputy Ministers office in PEI to discuss implementing an action plan aimed at instating a 10-15% provincial SR&ED component. We will keep you updated on any progress we see for the PEI provincial rates.

Thanks again for your kind words and we will see you again soon!

Have a question for the experts? Send us your inquiry.

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Although we endeavor to ensure timely and accurate information throughout this newsletter, it is not intended to be a definitive analysis of legislation cited, or a substitute for professional advice. Readers are encouraged to seek professional advice when attempting to relate their specific situations to information disclosed within.