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SR&ED FAQs

We failed to achieve the objective of a R&D project. Can we still file for SR&ED?

Yes. The success of a business project is unrelated to its eligibility for SR&ED. SR&ED claims are often subsets of business projects. SR&ED can be claimed as long as technological uncertainty, technological advancement, and systematic investigation can be shown, regardless of whether or not the business objectives were met.

Will this year's SR&ED claim affect the monies and tax credits already received from previous claims?

No. Unless the CRA paid out the incorrect amount due to a clerical error, previously assessed claims will not be reassessed.

How much time do I have to file for SR&ED? Can I amend an existing tax filing?

You have 18 months from the end of your fiscal year to file for SR&ED. You can amend an existing tax filing any time prior to the end of the 18-month period.

Can we still claim for SR&ED if we already receive IRAP?

Claiming IRAP does not preclude your company from benefiting from the SR&ED program. Generally speaking, IRAP payments will be deducted from SR&ED returns.

Will my business receive a tax audit if I apply for SR&ED?

The reviews for the SR&ED program are separate from those of the CRA audits. The objective of the CRA tax auditor is to recover tax dollars from taxpayers. The objective of the SR&ED program differs from this, in that its purpose is to encourage technical innovation in Canada.

Fast Facts about the SR&ED Program

  • The SR&ED program provides over $3 billion a year to Canadian companies.
  • The program was created to encourage technical development in Canada.
  • Most provinces also tax credit programs for research and development.
  • You have 18 months after your fiscal year end to submit your SR&ED claim.