Wednesday, January 20, 2016

SR&ED Refund Mistakes in Vancouver

With the turn of the new year, some Canadian businesses are getting antsy about the upcoming tax season. Spring is always a crunch time for businesses and tax filers, and they rely fully on their advisers and consultants. If you are in the process of preparing a SR&ED claim for tax refunds, there are some common mistakes that you need to be made aware of. Do not miss out on exciting SR&ED refunds in Vancouver this tax season, read our blog below and discover what mistakes you need to avoid!

What To Avoid When Preparing Your SR&ED Refund Claim

  • CCPC Status
There are several types of businesses and it is important to select which one most accurately describes your company, for tax purposes. Canadian Controlled Private Corporation, otherwise known as CCPC’s, may claim SR&ED refunds without an enhanced Investment Tax Credit tax rate. It is imperative to your SR&ED refund to see if you are of the CCPC status. Have your consultant
determine the status of your company and see if you are classified as a CCPC, as this will make your SR&ED refund venture much, much easier.

  • Income vs. Capital
There are many elements to plan when seeking SR&ED opportunities. Taxable income and taxable capital of your corporation are, of course, significant factors in this equation. Once a corporation has grown to a certain size, it is likely that the eligible amount for SR&ED tax reductions will decrease. Small or new companies who are more likely to have no taxable income or capital will have less trouble optimizing their SR&ED opportunities. If you operate a larger business, a SR&ED consultant will be able to best guide you down a successful path when seeking tax refunds.
  • Watch The Deadline
This is a crucial element when seeking SR&ED refunds that might be overlooked. There is a strict 18 month deadline for filing SR&ED claims. Incomplete SR&ED claims can also be denied, pushing you outside of your 18 month window. It is pivotal that you ensure your claims are lined up well before your deadline, as sometimes things can come up that will take longer to process. Planning ahead is key!

Need an SR&ED consultant for this upcoming tax season? Call Innotek today and learn more: 604-259-9937.

Friday, January 15, 2016

The Basics and Benefits of SR&ED in Vancouver

SR&ED stands for Scientific Research and Experimental Development, and SR&ED credits are available to qualifying companies. These scientific research and experimental development tax credits are provided by the Canada Revenue Agency (CRA). Any company that performs research and development in Vancouver and the rest of Canada may be eligible to claim these SR&ED tax credits. The credits are not minuscule, either, and each year Canada provides, on average, over $3 billion towards research and development companies.

Is My Company Eligible for SR&ED Tax Credits in Vancouver?

If you and your company are working with technology, in the sense that you are:
  • Creating and developing a new technology
  • Improving or developing a technology that is already in existence
  • Or developing the processes of an existing technology
You may be eligible to claim these helpful tax credits. These research and development tax credits can be quite lucrative to programs who are there to develop new and existing technologies. Other countries across the globe may have similar tax credit programs for those who perform research and development, but the SR&ED program in Canada is arguably one of the most beneficial and lucrative. If you feel like you company may be eligible for the SR&ED credits offers by the Canada Revenue Agency, the time to act and apply is now.

More Benefits of the SR&ED Tax Credit Program
Eligible Canadian Controlled Private Corporations (also known as CCPC’s) have the chance of receiving up to 35% back from qualifying SR&ED ventures that have developed new or existing technologies, products, or processes. Foreign and public companies may also be eligible for a tax credit, that can equal up to 15% on eligible SR7ED ventures.

SR&ED in Vancouver
Along with the previously aforementioned federal tax credits, Vancouver is also eligible for additional provincial tax credits for SR&ED. Corporation in scientific research and experimental development in Canada may also receive a 10% refundable tax credit on top of their federal SR&ED tax credits.

Have any questions about SR&ED tax credits in Vancouver? Contact the specialists at Innotek now by calling 604-259-9937

Monday, December 21, 2015

How Small Businesses Can Utilize R&D Tax Credits in Vancouver

What are research and development tax credits, and does your business qualify for these tax credits? The scientific and experimental development tax credit, otherwise known as SR&ED tax credit, is a helpful program that will reward qualifying businesses who conduct research and development by September 1st, 2017.

Will This SR&ED Tax Credit Really Make A Difference?
How substantial is this tax credit for your company? The benefits are vast with the SR&ED program. Businesses that qualify and that are completely Canadian controlled (otherwise known as CCPCs) can claim a refundable tax credit of 10%! You may claim the 10% on either your businesses qualified SR&ED expenditures for the tax year it was conducted, or the expenditure limit (usually around $3 million), as outlined in the federal Income Tax Act.

Non-refundable Tax Credits for SR&ED
Non-refundable tax credits are also available for expenditures that exceeds the expenditure limit. These non-refundable credits are also helpful to corporations that are not necessarily eligible for the refundable credit. If you are CCPCs and are not eligible for the refundable SR&ED tax credit, inquire about the non-refundable tax credits available.

The non-refundable tax credit is calculated per the tax year and is 10% of the companies SR&ED eligible expenditure for the tax year that is either less the amount of it’s refundable credit for the given year, or any amount renounced for that tax year.

How Do I Claim My Credit?
You can claim your tax credits with the SR&ED program by completing a SR&ED tax credit form (T666) and submitting the form to your T2  Corporation Income Tax Return, In the form, you can enter the amount of non-refundable tax credits online 659 and the refundable credit on 674 of Schedule 5.

Do you need any help understanding, applying, or requesting SR&ED tax credits? Visit us as today for more information or call us at 604-259-9937

Tuesday, December 15, 2015

SR&ED Basics

The Scientific Research and Experimental Development Program (otherwise known as SR&ED) is a program that aims to promote research and developmental work. The program does this by providing federal tax incentives to Canadian businesses of all sizes and in all fields who conduct research and development within Canada. This refundable credit is especially useful for smaller or new businesses or research. These incentives are there to helps foster more research and experimental development within all fields in Canada. SR&ED in Vancouver is a great way to grow and develop experiment research and ideas.

How Much Are You Eligible For?
While the amount is relative, there are a few ballpark amounts you can receive based on your taxable income. Canadian-controlled private corporations with less than $200,000 in taxable incomes may be eligible for a investment credit of 35% that is refundable. The maximum for those who fit into this category is $2,000,000.

Other corporations or partnerships that do not fit into this category may still be eligible for a tax credit of up to 20%.

Think of it this way: if you are a corporation with less than $200,000 in taxable income, for every dollar spent, you will receive 35 cents back in the form of either cash or a tax credit. That is a large amount that will add up, and fast!

You Might Be Eligible For More SR&ED Credits
Some provinces will offer additional credits. These provincial credits are added on top of the original amount, giving you and your corporation more room for exciting research and development projects in Canada. For example, British Columbia will offer an additional 10% credit to research and development projects.

Where To Apply
Companies or individuals alike can apply for the SR&ED program and its incentives, as long as they are taxpayers. First, you must fill out a CCRA T661 form, which includes information such as your annual tax filing. You will need to have proof that these funds were for research and development. A big component for being eligible is that these projects have some degree of risk or uncertainty; the SR&ED program is here to alleviate the potential of risk.

Monday, November 30, 2015

SR&ED Consulting: How it Can Help Vancouver Business Owners

The government encourages businesses to be innovative, and offers significant incentives for business owners in Vancouver that do. SR&ED is the Scientific Research and Experimental Development program in Canada.
The SR&ED program is a federal tax incentive program, administered by the Canada Revenue Agency, that encourages Canadian businesses of all sizes, in all sectors, to conduct research and development in Canada. If you have questions, do not hesitate to contact us at 604-259-9937.
What is Scientific Research and Development
This program is generated towards encouraging Canadian businesses of all sizes, to conduct research and development that will lead to new, improved products, processes, devices, materials and more!
How to maximize your claim?
To maximize your claim possibilities you should ensure that your company’s technical leadership is consulted to analyze what projects and activities have been completed that could be counted for your SR&ED claim.
When you visit us at Innotek in Vancouver, we will:
  • Screen your business activity
  • Prepare a technical report
  • Prepare all the tax schedules
  • Submit the completed claim
  • Provide support following reviews
Most business owners see SR&ED consulting as a time for innovation. Actually, it is not. Many innovative ideas would never qualify for an SR&ED tax credit. This is why it is a good idea to visit an expert for help and guidance.
A Tax credit, or refund that is actually substantial enough to change; the way a business operates, allows for new equipment, attracts new talent, rewards their staff, attend international trade shows, and better marketing budgets.
Interesting enough, the SR&ED program is the largest single source of federal government support for industrial research and development in Canada.
If you are a Canadian business owner who is interested in meeting with one of our consultants at Innotek, do not hesitate to call us at 604 259 9937 or click here to learn more today! 

Wednesday, November 25, 2015

7 Questions Vancouver Residents Should Ask SR&ED Consultants

Innotek SR&ED consultants in Vancouver will get to know your company and help by providing the SR&ED assistance you need for your business! Call us at 604-259-9937 today!

When you are choosing a consultant you don’t just want to pick the first one that approaches you, it is important that you take the time to ask relevant questions to determine if it is a right fit for your company or not.

Here are some questions you could ask:

How many SR&ED claims have you processed?

This question seems obvious but it is important that you understand your consultants filing background before accepting them. You want someone who has as much experience as possible and who is willing to work with you in case of a review.

Where does your expertise lie?

Different claims in different industries require different approaches, the consultant you choose needs to understand the industry. Be sure to ask how they approach the more technical side of the claim.

Who will prepare the claim?
Ask them who exactly will be preparing your claim, in larger organizations the senior person you met with initially does not always handle the claim.

What can I expect during the claim process?

This question will help you determine how much time and effort they will put into understanding the technical aspect of your claim. Well prepared SR&ED claims should start technical and end financial.

How does the payment work?

You have probably come to realize that there are fees attached to this SR&ED claim process. Some consultants will accept payment on a contingency basis while others will request upfront payment. How your fees are structured depends on the potential size of your claim and how confident you are in your claim consultant.

Having a hard time choosing a SR&ED consultant in the Vancouver area? Let Innotek professionals help you, call us at 604-259-9937 or click here to see how our consultants can meet the needs of your business.

Thursday, October 22, 2015

How To: Obtain SR&ED Refunds in Vancouver

SR&ED refunds come from the Canadian Government’s Scientific Research and Experimental Development program. This program rewards companies for conducting research and development activities throughout Canada.
When trying to make a SR&ED claim there is some criteria that must be followed:
  1. R&D being claimed must have taken place in Canada
  2. Proof that the money was used toward the claimed project (T4’s, cheques, invoices etc…)
  3. The company claiming must have ownership of the Intellectual Property resulting from the project
  4. The company must be up-to-date with respect to their government financial reporting
  5. The particular project expenses being claimed must have been received within the 12 months from the year-end being filed.
What determines a Eligible SR&ED project?
  • Technological Uncertainty (no obvious solution to your problem)
  • Systematic Investigation (removes technological uncertainties)
  • Achieve Technological Advancement
The steps listed above may seem confusing to you, if so, it is recommended that you reach out to an SR&ED consultant in order to receive the particular refunds you deserve for your business.
At Innotek Consulting LTD we have a very diverse group of professional individuals that work with the Canadian Revenue Agency to ensure that your business is eligible for big refunds based on the work you perform.
Innotek Consultants want you to have the most hassle-free process while being successful in your tax claims, and government refunds. If you are a canadian resident looking for assistance with your SR&ED refunds call us today at 604 259 9937 or visit us online to learn more!