What are SR&ED tax credits?
Introduced by the Canadian Government in 1984, Scientific Research and Experimental Development (SR&ED) Investment Tax Credits are designed to encourage innovation by allowing businesses to reclaim some of the money they have spent on developing new –or improving existing – products, services and process.
A lot of people think that “real SR&ED” is carried out in laboratories by people in white coats but that is not the case. Qualifying costs are comprehensive and approximately 97% of our workshops result in a successful claim. So whether you’re overcoming specific ground conditions, adapting equipment, creating new processes or developing better, safer, or greener methods of construction, you are almost certainly undertaking SR&ED.
Construction companies are missing out
Construction businesses are throwing away millions in unclaimed SR&ED tax credits, either because they aren’t claiming their fair share, or they aren’t claiming at all. Canadian businesses claimed $3.3 bn in tax relief during FY13, but the construction’s share of SR&ED claims is only 0.7% out of it.
Of the businesses that are claiming, many of them aren’t claiming enough. That’s because accountants frequently miss a significant proportion of the overall qualifying cost. Our team is made up of engineers, architects and surveyors who understand construction and ensure you get 100% of what you are owed.
The opportunity for construction
Loss-making SMEs can claim SR&ED Tax Credit repayment up to $33.33 for every $100 spent on qualifying SR&ED expenditure
Profit-making SMEs can claim SR&ED Tax Relief which reduces their corporation tax bill by up to $26 for every $100
How you benefit
Through our SR&ED services, our clients benefit by:
- The identification of current R&D activities in their processes, services, and products
- The preparation of CRA applications for SR&ED tax claims
- The achievement of sustainable growth in innovative capabilities
While supporting our clients, we help CRA to:
- Publicise the benefits of the scheme
- Encourage investment in innovation
Whatever the size or type of your business, we believe that you can unlock value by utilising the SR&ED tax credit incentive. To find out more, call us for a FREE initial consultation about your business or fill in your details below to download a free guide to SR&ED tax credits for your construction business.