Toronto, Canada – May 2020 – Payments from the federal government’s Scientific Research and Experimental Development (SR&ED) tax incentive have begun to flow following a logjam caused by the switch to remote working in the Canadian Revenue Agency (CRA) to address the Covid-19 pandemic. Companies that had submitted SR&ED claims were left in limbo as the CRA announced that it had paused auditing of claims as the agency adjusted to remote working practices.
SR&ED investment tax credits (ITCs) are a financial incentive, provided as a tax credit or refund to corporations that undertake activity and invest in projects that qualify as scientific research or experimental development in Canada. Contrary to common perceptions, most Canadian contractors and engineering consultancies qualify for the incentive but claims in the sector are currently low relative to construction’s share of the Canadian economy. Similarly, in countries where comparative incentives are available, construction make up a higher share of claims.
Ben Pritchard, Executive Vice President of Invennt said, “we’re beginning to see the effects of the CRA resuming audits and we’ve been impressed at how quickly they have cleared the backlog. But as Canadian construction businesses face up to the disruption caused by the pandemic, now is no time for complacency, so we hope this positive progress endures and the CRA can continue process SR&ED claims as quickly as possible.”
Pritchard continues, “the incentive is a valuable source of working capital for businesses, especially in the challenging trading environment caused by the Covid-19 pandemic. Now is the time for businesses that haven’t been claiming their SR&ED ITCs to seriously look at the program and establish whether they are eligible.” Invennt offer a free exploratory review to determine eligibility. To find out more click here or email email@example.com.
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Invennt is Canada’s leading specialist construction management consultancy. The business was founded by Tim Fitch and Brendan Morahan to help the construction industry get greater value from their investments. The company’s services include business strategy development, productivity & operational improvement, business development and marketing, collaboration and SR&ED tax credit claims.