Q. How many years back can be claimed?
A. SR&ED claims must be submitted within an 18-month window after each fiscal year end. For instance, if your company's fiscal year ends on December 31 2006, then June 30 2008 is your deadline for filing your 2006 SR&ED claim. If your projects qualify, you will be eligible to file two SR&ED claims immediately by June 30 2008, one (retroactive) for 2006 fiscal year and one for 2007 fiscal year. You will then receive government cheques for both fiscal periods at the same time.
Q. Am I eligible for SR&ED assistance following an initial successful claim?
A. Yes, as long as your work activities qualify, you may submit SR&ED claims year after year, for an unlimited period of time.
Q. How long does it take to receive the cheque after the claim submission?
A. If the T2 Corporate Income Tax and SR&ED claim forms are filed simultaneously, you will receive your cheque within 3-4 months. However, if you file your T2 and SR&ED claim separately, you will likely receive your cheque in 6-8 months. As a result, it is generally recommended to apply for SR&ED simultaneously with your corporate income tax submission.
Q. What is the average refund for a company?
A. Refunds depend on several factors, including the technological strength of the projects and your qualifying R&D expenses. Government refunds for Randwell's clients average between tens to hundreds thousands of dollars per year.
Q. Will my entire business be audited if I submit a SR&ED claim?
A. No. The purpose of the SR&ED review is only to examine information relating to your SR&ED claim, not to examine other aspects of your business.
Q. Will my competitors find out about my R&D?
A. No. Both, CCRA employees and Randwell's consultants have a legal obligation to treat all your technical and tax information confidentially. We typically sign a Non-Disclosure Agreement prior to working on your claim.
Q. What is my rate of return?
A. You will recover a significant portion of their research and development costs:
- 68% of salaries;
- 42% of contract payments, scrap, and equipment lease;
- 23% of capital equipment used exclusively for R&D.
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