September, 2009

Case Study: Software Solutions

Skeptical client thought business projects were not eligible for SR&ED tax credits!

Client offers business software solutions for their corporate clients. This was definitely not an out-of-the-box solution that they were developing for their Fortune 500 clients. Being first time claimants, they were skeptical that the Scientific Research and Experimental Development Tax Credit program would apply to them. After all, they wear business suits - not lab coats. They believed that there are plenty of companies out there that do the same things they do and that it is just a cost of business to try and provide a better product to the market.

They soon found out that you don't have to wear a lab coat to claim.

If your competition is doing the same activities as you, you both may qualify. Your competitor is not going to tell you how to do any part of your business. Because of this, the CRA looks at both innovations separately and judges advancements on the strengths of your project evidence. Northbridge worked extensively with the client to identify all eligible projects and turned their skepticism into belief.

Two-year claim, in excess of $764,000, was accepted 100% by the CRA!

Northbridge was able to guide the client through the SR&ED review process and lay aside the client's fears of the process with Northbridge's professionalism and superior knowledge of the SR&ED program.

This is a factual account of a client's success with Northbridge Consultants. Names have been removed to protect the client.

Calendar of Events - September, 2009

Employee Spotlight: Jen Mahon

Position

Engineering Manager.

Years in the Industry

Three Years.

Educational Background

Bachelor of engineering in materials science and engineering, masters in chemical engineering, minor in environmental science

Hobbies & Interests

Jen spends a good portion of her time travelling, both for work and leisure. She is often in Atlantic Canada or British Columbia for work. Recently, she spent a week in Japan. In the past, she has been down south and all over Europe; this year she plans on travelling to Las Vegas and Brazil.

Jen also really enjoys the music scene. She can typically be found going to at least a couple of concerts a month, whether they are a local band or a band that is popular on the international scene.

Biggest Non-work-related Accomplishment

Jen has been completely vegetarian for the past five years. She has also recently completed her first sky diving adventure.

Northbridge News & Events

Northbridge Capital Partners

Northbridge Consultants would like to announce the launch of a sister company by the name of Northbridge Capital Partners. The sister company will specialize in management buy-outs of Canadian Small Businesses with the preferred markets being in manufacturing and distribution. Northbridge Capital Partners' vision is to become the partner of choice for managers aspiring to complete an MBO. For more information please go to www.northbridgecapitalpartners.com.

If you would like to join the Northbridge Capital Partners' mailing list to receive a quarterly newsletter on management buyouts, please send an e-mail to info@northbridgecapitalpartners.com.

Canadian Manufacturing Technology Show

Northbridge is happy to announce that we will be attending the Canadian Manufacturing Technology Show at the Direct Energy Centre in Toronto from October 19-22. The areas of focus for the show will be machine tools, metal forming, factory automation, tooling supplies, service, measurement technology and quality assurance. This will be the second time we have attended this bi-annual event. We would like to invite everyone to come and visit us at booth 30029.

Ask the Experts

Dear Northbridge;

I've heard that claiming for SR&ED can affect both my taxes and other government assistance programs that I've applied for. Is this true?

- A Concerned Business Owner

Dear Concerned Business Owner;

We frequently hear this concern from people who are considering the SR&ED program. Rest assured that you have nothing to worry about. The SR&ED department of the CRA does not communicate it's findings outside of their particular department. Their only interest is to assess the eligibility of the SR&ED projects and expenses that you are claiming.

As far as it affecting other government assistance programs, you can claim SR&ED on privately funded projects and expenses. The projects that are recieving full funding from the government are ineligible for the SR&ED program.

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

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