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Test your knowledge of the SR&ED tax credit

Interpretation25Sep2018

Quiz : R&D Tax credit  (2)

Test your knowledge of the SR&ED tax credit – 10 questions abour R&D

We already published a similar test and many asked for more. So here is an other one for all of you, experts.

So, you think you are an expert in SR&ED ?

The R&D Tax credit is one of the most complex areas of the Income Tax Act. Do you think you are an expert in R & D credit? Do you need help from anyone? Let’s see how true this is. Test your knowledge with this short 10 question quiz.

  1. In order to claim the credit, a company must have a full technical and accounting documentation about the claimed years.
  2. Process improvements cannot qualify for the research credit.
  3. In order to receive a credit, a company’s research efforts and activities must be incremental, that means increasing year-over-year.
  4. Quality control activities always qualify as SR&ED.
  5. In a CRA technical audit, answering the three criterias of advancement, uncertainties and work done is not enough anymore. You need to answer the five eligibility questions.
  6. Wages and compensation of officers and directors cannot be included within the research credit.
  7. The SR&ED Investment Tax Credit earned in a tax year can be carried back and applied against tax otherwise payable in any of the 3 previous tax years or can be carried forward 20 years.
  8. The probability of having an audit can be greatly reduced by improving your project descriptions, the reasonability of costs claimed and the coherence of your claim.
  9. A claim preparer’s invoices are claimable as SR&ED eligible expenses.
  10. The same project can be claimed as SR&ED over many years without changing the advancements sought or the uncertainties.

 

In conclusion, you have a comment or suggestion about this quiz? Want to share your results with us? We want to hear from you! Please leave a comment below.

Did you like reading this ? Tell us so. What should be added ? What are you interested into ? You did not like reading this ? Tell us so. What is it that you disliked ?

Answers : 1 :F  2 :F  3 :F 4 :F  5 :T  6 :F  7 :T  8 :T  9 :F  10 :F

6/10 is a strict minimum, you are excellent if you reach 9 or 10 /10

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President, R&D Action. ------ Notre équipe est formée de spécialistes fiscaux, scientifiques et techniques qui comprennent les nuances du programme et de votre R & D. Nous travaillons avec votre équipe pour identifier et définir les projets éligibles de RS & DE, pour préparer un dossier clair et précis et pour le défendre, le cas échéant. ------------------------------------------------------ Our team is made up of tax, scientific and technical specialists who understand the nuances of the program and your R & D.. We work with your team to identify and define eligible SR & ED projects, to prepare a clear and accurate record and to defend it, when necessary.