SR&ED Consulting Services

dollarsignSR&ED is the Scientific Research and Experimental Development administered by the Canada Revenue Agency (CRA).  The program offers tax incentives in the form of refundable and non-refundable tax credits ranging from 20% to 35% on qualified expenditures. The SR&ED program provides nearly $3 billion in credits to over 24,000 claimants each year.

And, yet an estimated $3 billion goes unclaimed!   This is because many of the small and medium sized companies are not aware of the program, or do not think that their activities qualify for R&D funding, or just do not know how to go about it. The refund is available regardless of whether you have paid any taxes.

Resultel Technologies helps companies understand, navigate, prepare, file, and successfully claim SR&ED refundable tax credits.  Here's the 10 step process that we use to do it right the first time, and get you maximum benefits:

1. Identify Projects

You provide a very high level view of the key development activities for the fiscal period; we jointly analyze these activities in light of the eligibility guidelines and facilitate identification of projects that have the potential for being eligible for SR & ED refundable tax credits

2. Collect Project Data

We work with you and your team to walkthrough the technical details for the projects identified in Step 1; for each activity, we probe: 'why? why? why?' to identify the technological challenges and systematic investigation conducted to overcome them.  We clearly distinguish the technological advancements from project’s business objectives, the latter being of no consequence from SR&ED’s perspective.

3. Develop Draft Technical Write Ups

We develop and draft the technical write-up of the projects; clearly identify technological advancements, challenges, and the work done to overcome them, ensure sufficiency of data and identify any additional information required.  We benchmark the technological advancements against the contemporary ‘state of the art’ technologies.  This step does not involve any participation from your end as it is accomplished at our facility.

4. Conduct Technical Reviews

We email the draft technical write-ups to you, walk through them with you, incorporate your feedback and finalize the project descriptions.  Occasionally, at this point, more sub-projects, or SR&ED activities, may be identified, and repeat of Steps 1 to 3 may be warranted.

5. Prepare Financial Data

We conduct detailed labour analysis, project costs estimation, and preliminary calculations for the SR&ED claim.  We review such documents as employees T4’s, supply agreements and contract payments, as part of due diligence to ensure all expenses claimed are justifiable.

6. Conduct Financial Review

We prepare and review financial assertion with you, to ensure we have not missed any important cost factors.

7. Identify Required Supporting Documentation

We help collect supporting documentation; this includes both contemporaneous technical and financial information.   Although, most of the claims filed by us are approved without a detailed on-site audit,  we ensure projects’ back up details are readily available for a potential audit.

8. Develop CRA Submission

If you have not filed your corporate tax return, we provide the SR&ED claim related information to the accountant and work with him/her to file the claim as part of the filed your corporate tax return.  If you have already filed it, we submit the SR&ED claim to the CRA and amend the tax return without any assistance from your accountant.

9. Participate In CRA Audit / Follow Up

We participate in the CRA audit and all SR&ED related meetings to clarify justify and defend the submission

10. Train Your Company For Subsequent Submissions

Finally, we review lessons learned and prepare guidelines for further submissions

We do not actively engage in reviewing previously or currently submitted SR & ED claims, or pursue notice of objection or process appeals for claims prepared by others.

Fee Structure

These services are provided both on a flat fee basis and success-based compensation.


About The SR&ED Program

the information in this article is from the Canada Revenue Agence site.  For further information, please click the CRA logo below.

CRAlogoThe Scientific Research and Experimental Development (SR&ED) Program is a federal tax incentive program to encourage Canadian businesses of all sizes and in all sectors to conduct research and development (R&D) in Canada that will lead to new, improved, or technologically advanced products or processes. The SR&ED program is the largest single source of federal government support for industrial R&D.

Claimants can apply for SR&ED investment tax credits for expenditures such as wages, materials, machinery, equipment, some overhead, and SR&ED contracts.

It should be noted that the CRA is responsible for administering the SR&ED program, while the Department of Finance is responsible for the legislation that governs it.

Who Qualifies?

Generally, a Canadian-controlled private corporation (CCPC) can earn an investment tax credit (ITC) of 35% up to the first $3 million of qualified expenditures for SR&ED carried out in Canada, and 20% on any excess amount. Other Canadian corporations, proprietorships, partnerships, and trusts can earn an ITC of 20% of qualified expenditures for SR&ED carried out in Canada.

Generally, a CCPC with a taxable income in the immediately preceding year that does not exceed the qualifying income limit may receive a portion of the ITC earned as a refund, after applying these tax credits against taxes payable.

The ITC earned by a Canadian corporation that is not a CCPC is non-refundable, but may be used to reduce any taxes payable. The ITC earned by a proprietorship or certain trusts may be partially refunded after applying these tax credits against taxes payable.

What Kind Of Projects Qualify?

To qualify for the SR&ED program, work must advance the understanding of scientific relations or technologies, address scientific or technological uncertainty, and incorporate a systematic investigation by qualified personnel.

Work that qualifies for SR&ED tax credits includes:

  • experimental development to achieve technological advancement to create new materials, devices, products, or processes, or improve existing ones;
  • applied research to advance scientific knowledge with a specific practical application in view;
  • basic research to advance scientific knowledge without a specific practical application in view; and
  • support work in engineering, design, operations research, mathematical analysis, computer programming, data collection, testing, or psychological research, but only if the work is commensurate with, and directly supports, the eligible experimental development, or applied or basic research.

The following activities are not eligible for benefits under the program:

  • social science and humanities research;
  • commercial production of a new or improved material, device, or product, or the commercial use of a new or improved process;
  • style changes;
  • market research or sales promotion;
  • quality control or routine testing of materials, devices, products, or processes;
  • routine data collection;
  • prospecting, exploring, or drilling for or producing minerals, petroleum, or natural gas; and
  • development based solely on design or routine engineering practice


Resultel Technologies  |  1295 Chedboro Crescent  |  Oakville, ON, Canada  L6J7A2  |  Phone: (416) 786-4644
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