Who is eligible for SR&ED?

All Canadian businesses that are currently filing a tax return to the Canada Revenue Agency and developing or improving upon a product or process.

 

What Is SR&ED?

Scientific Research and Experimental Development (SR&ED), commonly called "shred" is a federal tax incentive program.  The Canada Revenue Agency offers this program to assist companies engaged in many types of innovation. This may include many product or process, improvements or developments.  The goal of this program is to encourage Canadian companies to develop new and improved products and processes and keep the R&D work in Canada.

 

What are the SR&ED criteria?

 

Was there a scientific or a technological uncertainty—an uncertainty that could not be removed by standard practice?

 

Did the effort involve formulating hypotheses specifically aimed at reducing or eliminating that uncertainty?

 

Was the adopted procedure consistent with the total discipline of the scientific method, including formulating, testing, and modifying the hypotheses?

 

Did the process result in a scientific or a technological advancement?

 

Was a record of the hypotheses tested and the results kept as the work progressed?

 

Does the information exchanged stay confidential?

Xurbo ensures that all information exchanged remains proprietary.  Any and all info acquired will remain confidential and only be used during the claim preparation process.

 

How much can I claim?

There is no cap on the amount that can be claimed.  As long as the above criteria are met then you will be eligible for all that is claimed.

 

How much of my time is required?

Xurbo's goal is to keep the process as simple and efficient as possible.  While we will need some of your time to ensure that we have all of the proper info, we understand that your time is best spent working on your business.

 

How long does the process take?

A company can expect it to take, on average,  six to 12 months from the time the claim has been submitted.  Over the years we have experienced refunds received in as soon as seven days or as long as 16 months.

 

What if we attempted a project that was unsuccessful?

SR&ED must meet the five criteria stated above; success is not one of the criteria.  The CRA is looking for technological advancement and this can still occur, and is often times more prevalent in a failed project.