{"id":351,"date":"2016-05-25T09:48:39","date_gmt":"2016-05-25T09:48:39","guid":{"rendered":"http:\/\/rdactionconsultant.com\/en\/?p=351"},"modified":"2025-11-27T18:29:33","modified_gmt":"2025-11-27T18:29:33","slug":"understanding-the-cra","status":"publish","type":"post","link":"https:\/\/rdactionconsultant.com\/en\/blog\/understanding-the-cra\/","title":{"rendered":"Understanding the CRA and its requirements"},"content":{"rendered":"<div class=\"vgblk-rw-wrapper limit-wrapper\">\n<div class=\"citation-quote\">\u00ab The CRA has adopted a more rigorous approach to defining what can be claimed as SR &amp; ED tax credit \u00bb<\/div><\/p>\n<p>In recent years, the CRA has adopted a more rigorous approach to defining what can be claimed as SR &amp; ED.\u00a0As a result, there are more audits, disputes and objections.\u00a0This increases the challenge of the claims process.<\/p>\n<p>Here is an approach and a strategy that significantly increases the chances of success of your claims.<\/p>\n<h2>\u00a0Our philosophy and winning strategy<\/h2>\n<p>Our strategy is to demonstrate to the CRA auditors that your claim meets their requirements. This means\u00a0your projects and related activities have been selected to meet the tax laws and optimal controls are in place.<\/p>\n<p>The CRA auditors see your claims as more credible, leading to faster conclusion of your claim.\u00a0More importantly, you improve your relationships with the tax authorities while increasing predictability of your file.<\/p>\n<p>Our success is due to the quality and competence of our resources, of course, but also to our deep understanding of the changing requirements of the CRA.<\/p>\n<h2>The requirements of the Canada Revenue Agency (CRA)<\/h2>\n<p>The CRA has raised the bar regarding the interpretation of eligibility of SR &amp; ED activities and increased its controls. Specifically we have seen significant developments regarding:<\/p>\n<ul>\n<li>Evolution of the basic definitions, which also often\u00a0vary\u00a0from\u00a0one adviser\u00a0to\u00a0another\u00a0and\u00a0from one regional\u00a0office\u00a0to\u00a0another. These new definitions include in particular:\n<ul>\n<li>Uncertainty\u00a0and advancement,<\/li>\n<li>The\u00a0direct and support activities,<\/li>\n<li>The systematic research by\u00a0experimentation or analysis.<\/li>\n<\/ul>\n<\/li>\n<li>The supporting documentation for each SR &amp; ED project\u00a0must:\n<ul>\n<li>Be detailed by highlighting the assumptions and conclusions drawn from each experiment,<\/li>\n<li>Show a systematic\u00a0approach,<\/li>\n<li>Be contemporaneous and supportthe chronology of the SR &amp; ED activities.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>You usually claim credits on your technological developments and new requirements to satisfy the changing needs of your customers.\u00a0Funding for these SR &amp; ED activities is essential to :<\/p>\n<ul>\n<li>Maintain or even accelerate your development, and<\/li>\n<li>Ensure a smooth adaptation in your markets.<\/li>\n<\/ul>\n<p>In conclusion, the CRA has evolved in its interpretation of the program criteria and you must adapt to it before being surprised.<\/p>\n<p>What do you think ?\u00a0Do you believe in this convergence approach with the CRA ?\u00a0Or are you more in favor of the guerrilla ?\u00a0Why ?<\/p><\/div>\n<p><!-- .vgblk-rw-wrapper --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In recent years, the CRA has adopted a more rigorous approach to defining what can be claimed as SR &amp; ED.\u00a0As a result, there are more audits, disputes and objections.\u00a0This increases the challenge of the claims process. Here is an approach and a strategy that significantly increases the chances of success of your claims. \u00a0Our&#8230;<\/p>\n","protected":false},"author":8,"featured_media":1181,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[93],"tags":[],"class_list":["post-351","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interpretation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Understanding the CRA is THE winning strategy for SR&amp;ED | R&amp;D Action Consultant<\/title>\n<meta name=\"description\" content=\"The CRA has adopted a more rigorous approach to defining what can be claimed as SR &amp; ED. 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