{"id":3379,"date":"2018-11-18T03:03:02","date_gmt":"2018-11-18T03:03:02","guid":{"rendered":"https:\/\/rdactionconsultant.com\/?p=3379"},"modified":"2025-11-27T18:29:49","modified_gmt":"2025-11-27T18:29:49","slug":"do-you-claim-all-rd-tax-credits-you-are-entitled-to","status":"publish","type":"post","link":"https:\/\/rdactionconsultant.com\/en\/blog\/do-you-claim-all-rd-tax-credits-you-are-entitled-to\/","title":{"rendered":"Do you claim all R&#038;D tax credits you are entitled to ?"},"content":{"rendered":"<div class=\"vgblk-rw-wrapper limit-wrapper\">\nAre you claiming <strong>ALL<\/strong> the SR &amp; ED tax credits to which you are entitled? Do you believe that you or your consultant know everything? Calculating your tax benefits is more than knowing how to <strong><a href=\"https:\/\/rdactionconsultant.com\/en\/blog\/how-much-tax-credits-for-sr-ed-sme\/\" target=\"_blank\" rel=\"noopener\">calculate your credits<\/a><\/strong>. Here are some clues that could save you thousands of dollars after tax.<\/p>\n<div class=\"citation-quote\"> &#8220;Are you claiming ALL the SR &amp; ED tax credits to which you are entitled?&#8221;<\/div>\n<h2>Common underclaiming errors:<\/h2>\n<ul>\n<li>If you have made major investments in technology, you may be underclaiming.<\/li>\n<li>If you are a technology company involved in manufacturing, or feel that R&amp;D improvements on shopfloor are generally not eligible, you are underclaiming the developments of your processes.<\/li>\n<li>Ignoring the work done to improve your existing products and their existing manufacturing processes.<\/li>\n<li>Forgetting external studies where significant scientific results are expected.<\/li>\n<li>Focusing on low-level issues rather than major uncertainties:\n<ul>\n<li>If you are claiming many small projects rather than the higher-tech projects they support, you are probably forgetting SR&amp;ED expenditures.<\/li>\n<li>If you report projects close to the task level, you underestimate the costs. In addition, it will normally be very difficult to prove your eligibility.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Establish the appropriate costs for your claim<\/h2>\n<ul>\n<li>When it is determined that an employee&#8217;s time is directly engaged in SR&amp;ED at 90% or more, the full annual salary may be claimed. This includes specified employees.<\/li>\n<li>When calculating wages, include vacation pay, paid holidays, sick leave and any taxable benefit to the employee.<\/li>\n<li>If you are related or associated with another company that also performs SR&amp;ED, make sure the expense limit is correctly assigned to each company.<\/li>\n<li>Remember that while the &#8220;proxy&#8221; method is easier to follow and administer, the &#8220;traditional&#8221; method allows for a broader base of costs to be included in the allowable SR&amp;ED expenditures and SR&amp;ED eligible expenditures for the ITC calculation\u00a0 . Make sure that a correct comparison of both methods is made before submitting the final claim.<\/li>\n<li>Keep in mind that if there are contractual payments for SR&amp;ED between non-arm&#8217;s length people, the executor can transfer eligible expenses to the payer. The two companies must then jointly file the appropriate form within 6 months of the end of the transfer year. It is also necessary to include the appropriate resolutions of the boards of directors. If there is no link between people, the contract will decide who can claim the SR&amp;ED expenditure.<\/li>\n<li>You must prepare a list of qualified personnel who support the amounts claimed. This list do not have to accompany the claim, but they must be kept on file.<\/li>\n<\/ul>\n<h2>Important note<\/h2>\n<p>The information contained in this blog is for information only. Before submitting a claim, consult an accounting or tax specialist and the relevant policies available on the <strong><a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/scientific-research-experimental-development-tax-incentive-program.html\" target=\"_blank\" rel=\"noopener\">Canada Revenue Agency (CRA) website<\/a><\/strong>.<\/p>\n<p>Thank you for visiting the R&amp;D Action blog.<\/p>\n<p>Look at the index on the right of this page. It contains several other categories of practical and applicable solutions that are also for you.<\/p>\n<p>Did you like your reading? Tell us. Share it. What should be added? What topics are you interested in?<\/p>\n<p>Did not like this reading? Tell us. What did you like least about this text? How can we best meet your needs?<\/p><\/div>\n<p><!-- .vgblk-rw-wrapper --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you claim all R&#038;D tax credits you are entitled to ?<\/p>\n","protected":false},"author":8,"featured_media":3376,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[87],"tags":[],"class_list":["post-3379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-calculation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Do you claim all R&amp;D tax credits you are entitled to ? - R&amp;D Action<\/title>\n<meta name=\"description\" content=\"Do you claim all R&amp;D tax credits you are entitled to ? Claiming SR&amp;ED tax credits means more than calculating the credits. 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