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Structure Strategy:
In the field of taxation there are often several different "right" answers, only one of which produces the optimum results. This is particularly true when it comes to SR&ED claims where factors such as company ownership, loans and even letters of intent can have a drastic effect on the amount of benefit that you are eligible to receive. Things are even more complex if your company has international connections or affiliations. Our sister firm Cadesky Tax has chartered accountants and lawyers with expertise in Canadian and international taxation. We'll help you decode the rules and - where necessary - guide you through whatever changes might be required to ensure maximum SR&ED claim returns.
Eligibility Assessment and Claim Strategy:
We identify which aspects of your R&D work qualify for SR&ED. We review your past filings and CRA findings to see what needs to be improved. Working together with your CA firm, we craft a compliant but optimized filing position that will yield the highest r&d tax credit benefit.
Project Technical Descriptions:
Our technical consultants will interview your R&D staff in journalistic fashion, which usually takes about two hours per project. We then compose draft project technical descriptions which are submitted to you for final review and approval. The finished product is delivered to your tax preparer embedded in a CRA form T661. The T661 is delivered both as hardcopy and as an electronic data file ready for direct import into tax preparation software without requirement for either manual keyboard entry or cut / paste operations.
Cost tabulation:
Working from your records, we identify SR&ED eligible expenditures and tabulate them into the electronic T661 form that we provide to your tax preparer. This includes all the summary information, field codes and other statistics that are required in the latest T661.
Contract Review:
If you are either buying or selling R&D services (or even products resulting from R&D), your SR&ED claim eligibility is significantly altered by the contractual arrangements. Both incoming and outgoing transactions need appropriately worded contracts. We'll review the wording of contracts to ensure that you remain fully entitled to the full SR&ED claim benefits on all your transactions.
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Preparation of Corporate Tax Return:
We almost always work in concert with our Client's existing tax preparers to whom we deliver the completed T661 form ready for import to their tax preparation software. However in the event you don't already have a tax preparer, fully qualified chartered accountants from our affiliated firm Cadesky Tax can handle any aspect of corporate tax work. We may also draw on Cadesky in the event your existing accountants do not have capacity (e.g. deadline filings, multiple year ends, amendment of prior years etc.).
Compliance and Record Keeping:
We review your business processes to ensure that SR&ED claim expenditures are properly tracked. We can also help you design and implement document management and time capture systems that meet CRA expectations.
Audit Support and Claim Defence:
If CRA decides to audit your claim, we will be there to help, advise and make sure you are treated fairly. We'll conduct a "mock audit" to train your staff beforehand so they know what to expect and have the right kinds of records to hand. After the auditor leaves we'll help you prepare whatever additional information was requested and we'll stay in touch with CRA to make sure the whole process stays on track.
Dispute Resolution, Settlement Negotiations, Appeals, and Tax Court of Canada Actions:
After the audit is complete you have 90 days from the date shown on the Notice of Assessment to dispute the assessment. This can be done either through a Notice of Objection alone or together with an appeal to the Tax Court of Canada. The Notice of Objection can be an effective way to resolve disputes on expenditures. However, in certain cases an appeal to the Tax Court of Canada may be both faster and offer better opportunity for success, particularly if scientific eligibility is the primary issue. Our legal counsel, who is exclusively dedicated to these procedures, will review the facts of your situation and develop a redress strategy that fits your circumstances and your budget. We will help you prepare all the submission documents and represent you in negotiations with CRA and - if necessary - in the Tax Court of Canada.
Site Selection:
We offer advice on R&D site selection vis-à-vis tax credits and other forms of government assistance, both within Canada and abroad.
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