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