Two services before claiming
The CRA announces a second pre-claim SR&ED evaluation service. There are notable differences between the two services.
Pre-Claim Consultation (PCC)
The Pre-Claim Consultation (PCC) “will let you know if your work is SR & ED” before submitting your claim. The consultation will focus on the work in progress. The reviewer will provide a written report confirming the existence of eligible work, but no decision on the scope of work or eligible expenses. The CRA will provide “advice and recommendations”, including what documentation to keep.
Prerequisite:
The CRA does not specify the eligibility criteria for this service but it will determine if you qualify.
In practice :
Some already criticize this new service because it offers little benefit for applicants. A positive report is not binding on the CRA, but a negative almost excludes admissibility of the work evaluated.
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With the Pre-Claim Review (PCR) CRA will provide certainty that your claim will be accepted as filed and an assessment of the scope of work and eligible expenses. PCR is not available to:
- New applicants
- Work under a formal litigation or objection
- Applicants claiming more than 20 projects for the current year
Prerequisite:
Having already participated in:
- a Pre-Claim Consultation (PCC)
- a First-Time Claimant Advisory Service, or
- an SR&ED review,
In practice :
It seems that this will be a periodical regular audit performed while the work proceeds. This might be interesting for companies claiming very large projects and in need of certainty of their future claims.
The PCC is a pilot program. It will be deployed across the country in the coming months and will be accessible to a limited number of participants.
