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February, 2010

This Issue Message from the Managers | Testimonial | Upcoming SR&ED Changes | Vision & Mission Statements
Employee Spotlight | News & Events | Facts & Figures | Tips & Tricks | Ask the Experts

Message from the Managers

Jen MahonMike CrozierWith the new year officially underway, it’s time to start fresh. Not only have we said goodbye to 2009, but we have said goodbye to an entire decade! The best way to start the new decade off right is with some reorganization and preparation for the year to come – including creating a plan for any SR&ED projects you may start or continue to work on. As such, to follow are some suggestions that you can implement in order to help ensure an organized SR&ED claim.

Firstly, remember to keep hard copies of all of your electronic communication. E-mails, electronic invoices, meeting minutes and the like should be kept in both hard and soft copy to ensure that no information is lost should an unforeseen event occur.

Secondly, keep all of your SR&ED documents in the same place. Keeping all of your invoices, contracts and time sheets (as well as all hard copies of electronic communication) in one central location will help speed up the process of collecting your supporting documentation when it is time to put together your SR&ED claim.

Thirdly, always remember to take photographs of any progress or ongoing changes you’ve made in your SR&ED projects, and be sure to date them. Photographs can a necessary element in SR&ED claims.

Lastly, whenever possible, convert all USD amounts into CDN using the daily spot rates online. This will help with accuracy when calculating your final expenditures later on in your SR&ED claim.

Remember, we are always here as a constant resource! If you are having difficulties tracking your SR&ED activities for any current or future claims, or have any questions as to whether a project you are undertaking may qualify for the SR&ED program, we can help! Not only can we provide you with answers and support, we can also provide samples of documentation to give you an idea of what will be useful for substantiating your claim. Get in contact with your account manager today. Whether you are currently filing a claim or not, Northbridge Consultants is dedicated to being here for you every step of the way!

Best Regards;

Michael Crozier & Jen Mahon
SR&ED Engineering Managers
Northbridge Consultants


“When we first signed on with Northbridge Consultants I was unsure of whether the SR&ED program would provide a worthwhile return on investment. After meeting with Michael Crozier, I felt much more at ease both about the program and about the claiming process. Together, we completed claims for 2006, 2007 and 2008, and after going through the audit process received significant funds back which we have used to reinvest in our company. Going forward, we plan on continuing to strengthen our relationship with Northbridge, and are confident that Mike will make it easy to complete and submit our future claims, with a similar return to what we have previously received”

machine– Steve Schafer, P. Eng.
Vice President Operations of Multivans Inc.

Multivans Inc. manufactures truck bodies for dry freight body, cube van, refrigerated truck body or lift gate trucks. MultiVans has been serving the Canadian transportation industry since 1962, and leads the industry in quality.


Vision Statement

To be the premier consulting partner for Canadian businesses by offering personalized services that support client and corporate goals. Our top priority is to fulfill the client's needs through the delivery of service excellence, professional expertise and reliability, the preservation of the utmost integrity, and the passionate encouragement of teamwork and employee development.

Mission Statement

Northbridge provides results oriented consulting services through the development of adaptable and innovative business solutions for firms operating in Canada.

Employee Spotlight: Ben Hendriks

Ben Henriks

PositionBusiness Account Manager and Support Specialist

Experience in IndustryOver 4 years of Consulting experience in a variety of areas including the SR&ED Tax program and Materials engineering working with clients for product testing, bringing products to market, conducting failure analyses among other needs.

Educational BackgroundMaterials Engineering & Society degree with a Minor in Business

Professional Memberships and DesignationsP.Eng

Hobbies & InterestsReading, traveling and athletics

Biggest Non-work-related AccomplishmentBen has been fortunate enough to have been able to travel to a number of places on his list.  Some destinations include:  Holland, Cuba, Madagascar, and various places around North America, including being able to visit all three Official M&M’s Candy stores the world (those locations being in Las Vegas, Orlando, and New York City).

News & Events

Lunch and Learn

Northbridge Consultants held another Lunch & Learn seminar in Kitchener, ON and is looking forward to the next one in Guelph, ON! Join us for lunch and hear a comprehensive explanation from the experts on how you can benefit from the program!

Find us on Facebook

Northbridge is now on Facebook! The group is designed to be interactive, so get involved to make the most of it! Share your thoughts, ideas and questions with other group members.

Green Technology

Canadian firms are now heavily engaged in developing clean technology processes. Northbridge continues to do their part to promote this effort by providing leading edge services in maximizing SR&ED Tax Recovery. This enables manufacturers to maintain profitability while undertaking some very costly initiatives thereby moving us towards our ultimate goal of zero-impact to the environment, and hence, to our future.

Dates to Remember

  • February 11 - Complimentary Breakfast Seminar in Thornhill, Ontario
  • February 28 - August 2008 FYE claims due now

Facts & Figures

  • The SR&ED program is the largest federally funded R&D incentive program which provides over $4 billion annually to over 18,000 claimants, with $2.1 billion going to Ontario based businesses.
  • The program is designed to encourage Canadian companies to invest in R&D.
  • Only 50% of eligible companies are taking full advantage of the SR&ED tax incentive program.
  • Qualifying CCPCs can earn a refundable tax credit of up to 41.5% on eligible expenditures.
  • Non refundable ITCs earned on eligible expenditures can be carried back 3 years, or carried forward 20 years.
  • Claimants can now earn SR&ED investment tax credits (ITC) for work performed outside of Canada - up to 10% of the total salary or wages for SR&ED performed in Canada.

Tips & Tricks

  • Take the time to set up a proper system to track the hours / capital associated with each project and have the discipline to keep it up to date. Remember, when you get audited (it always happens) you need to be able to defend the work and time spent.
  • Make sure you identify all the eligible projects early on and make sure the technical staff are talking to each other, as well as to the finance folks, as to how each project will play out.

Ask the Experts

Dear Northbridge,
We have been mired down in a corporate tax audit for almost 8 months now; with our year end coming up, we are dreading filing anything which will complicate matters until the ordeal is completed. Our head engineer mentioned that the SR&ED portion of our filing was completely separate and I shouldn’t worry, but I still do. Please clarify the situation for me, as this is our first time filing for research tax credits.
- John

Dear John,

The process of filing for R&D tax credits is typically misunderstood; once you receive your first cheque back for SR&ED expenditures you will become a believer in the program.

Firstly, you need to think of the SR&ED CRA division as completely separate from the corporate side of the CRA. The two are mutually exclusive and are not permitted to affect each other. The SR&ED CRA cannot become involved in a corporate audit and vice versa.

Second, we welcome the review process for SR&ED filings as we always have the data to back up a claim. This gives the reviewer an inside look at the technology you use. Having a reviewer understand the science in your operations means that next time around there should be a greater understanding of the hardships involved with technological advancement in your industry.

Third, there are two types of reviews: Financial and Technical. The financial review focuses on accounting numbers submitted in the claim and does not look at technical information. As the financial reviewer doesn’t usually have technical expertise in your industry, this type of review is usually accompanied by a technical review.

The technical reviewer has a responsibility to fully understand the science he or she is reviewing; this is the most typical type of review. These reviews are fact finding missions: they are fairly concise and are for the reviewer’s education. We are happy to help the reviewers understand what you are doing.

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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.

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Cambridge, ON N1R 7N3

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Bedford, NS B4A 2Y9

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