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.