- We failed to achieve the objective of a R&D project. Can we still file for SR&ED?
- Will this year's SR&ED claim affect the monies and tax credits already received from previous claims?
- How much time do I have to file for SR&ED? Can I amend an existing tax filing?
- Can we still claim for SR&ED if we already receive IRAP?
- Will my business receive a tax audit if I apply for SR&ED?
- Can we claim both SR&ED and OIDMTC?
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.
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.
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.
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.
If your business is engaged in developing an Interactive Digital Media product, chances are you are partaking in R&D activities. Businesses can claim both SR&ED and OIDMTC tax credits on a project, as long as you are not claiming any costs twice. Costs claimed for SR&ED must be separate from costs claimed for OIDMTC.