{"id":3035,"date":"2018-09-21T16:11:29","date_gmt":"2018-09-21T16:11:29","guid":{"rendered":"https:\/\/rdactionconsultant.com\/?p=3035"},"modified":"2025-11-27T18:29:45","modified_gmt":"2025-11-27T18:29:45","slug":"5-questions-for-sred","status":"publish","type":"post","link":"https:\/\/rdactionconsultant.com\/en\/blog\/5-questions-for-sred\/","title":{"rendered":"5 Questions for SR&ED"},"content":{"rendered":"
\nThe Scientific Research and Experimental Development (SR & ED) Vote is Canada’s highest paying tax program. First, qualify your projects for this program. Let’s take a look at how the Canada Revenue Agency (CRA) assesses your work.<\/p>\n

This page consists of excerpts from the “Eligibility of Work for SR&ED<\/a> Investment Tax Credits Policy”. This policy is taken from the CRA website.<\/p>\n

In addition, we provide you with a link to other pages from our blog for a practical view about answering these questions.<\/p>\n

In general<\/h2>\n

Determining whether there are SR & ED activities means that there is:<\/p>\n

“systematic investigation or search<\/a>\u00a0that is carried out in a field of\u00a0science<\/a>\u00a0or\u00a0technology<\/a>\u00a0by means of\u00a0experiment<\/a>\u00a0or\u00a0analysis<\/a>\u00a0and that is [Note (a)]\u00a0(c)\u00a0experimental development<\/a>, namely, work undertaken for the purpose of achieving\u00a0technological advancement<\/a>\u00a0for the purpose of creating new, or improving existing, materials, devices, products or processes, including incremental improvements thereto<\/strong>,“<\/strong><\/p>\n

Note (a) Basic research and (b) Applied research are rarely applicable in the real world.<\/p>\n

All that sounds complicated, is it? CRA now uses five questions to qualify your projects.<\/p>\n

“To qualifying your projects\u00a0 you need a systematic research in a technology area and documented experiments or analyzes”<\/div>\n

Determine the eligibility of your projects : Five questions for SR & ED<\/h2>\n

The Canada Revenue Agency (CRA) uses the following five questions to determine whether your work meets the definition of SR & ED. You must respond positively to the 5 questions to qualify your SR & ED activities.<\/p>\n

1- Was there a scientific or technological uncertainty?<\/h3>\n

Scientific or Technological Uncertainty<\/a>: The probability of achieving a given goal or result, or how to achieve it, can not be known or determined in advance based on experience or scientific or technological knowledge usually available.<\/p>\n

2- Has the effort been to formulate hypotheses specifically aimed at reducing or eliminating this uncertainty?<\/h3>\n

A hypothesis is an idea, in accordance with known facts. It serves as a starting point for a comprehensive study to prove or disprove this idea.<\/p>\n

3- Was the overall approach adopted consistent with a survey or systematic search?<\/h3>\n

This includes the formulation and testing of hypotheses through experiments or analyzes.<\/p>\n

Investigation or systematic research<\/a> is an approach involving:<\/p>\n