Are Your SRED Claims being audited by the CRA? Are you concerned that your claim may be disallowed or your refund amount reduced? AG Tax Chartered Accountants have helped countless clients to resolve their SRED tax refund issues with the CRA.
There has been increased CRA scrutiny of SRED claims in the past year. Part of the reason lies in the recent uncovering of claims under suspicion of fraud. In addition, the CRA review process itself has undergone changes intended to balance the technical assessment components with the financial content. Previously the technical assessment was given greater weight than the financial components.
Indicators Of a Well Prepared SRED Claims
• The technical report demonstrates a good understanding of what qualifies as SRED eligible
• The supporting documentation is accurate and comprehensive
• The evidence of a systematic investigation is properly described
• The financial components are free of mistakes and misunderstandings
• The documentation supporting the financials is complete and accurate
The SR&ED program is “self-assessed”. The CRA look for evidence of your understanding of what is eligible when they review your claim. Claims including “ineligible” content are likely to raise a red flag and are generally subject to more in-depth review and perhaps “audit”
Click this link to see what happens when your SRED claim is filed?
Claiming everything that is eligible and nothing that falls outside the program will definitely have an impact on whether your claim is selected for further review or audit. However, there is no guarantee that your claim will not be audited
What If Your Claim is Selected For Audit?
Some SR&ED service providers take a primarily “technical” approach to preparing and submitting your SR&ED claim. Unfortunately some service providers are only able to support or resolve the technical issues that may surface during an audit. This is unfortunate because many of the contested issues are on the financial side of the equation.
AG Tax LLP Can Help
If you have any tax-related queries or need assistance with tax planning or filing please contact AG Tax. Our tax professionals are highly-experienced with US and Canadian tax laws and can provide you the right guidance to handle your tax situation.
Aylett Grant Tax LLP is a full service accounting firm with a dedicated team of experts, who are highly-qualified and experienced in handling situations related to US, Canadian, and other international tax laws. We can assist with:
- Canadian Personal and Corporate tax returns
- Cross Border Taxation and Business Planning
- US Personal and Corporate Taxation
- Disclosure of Foreign Assets and other information filings
- Retirement planning
- Estate Planning, Inheritance tax advice
To obtain a quote or to arrange for a consultation to discuss your tax related queries, please contact us at:
- 416-238-5920 (Greater Toronto Area, ON)
- 604-538-8735 (Greater Vancouver Area, BC)
- 780-702-2732 (Greater Edmonton Area, AB)
Disclaimer: The information in this publication is accurate as of the time of its publication. AG Tax assumes no responsibility for changes to tax legislation subsequent to the publication of this document. The information provided is for general information purposes only and should not be acted upon without seeking professional advice. If you would like to engage our services, please contact our staff and obtain authorization to send our firm confidential information. A client relationship is not created by the transmission of information. A client relationship is only formed with our firm when a scope and engagement letter signed by the firm and the potential client detailing the terms of engagement is present.