{"id":486,"date":"2016-10-12T14:27:58","date_gmt":"2016-10-12T14:27:58","guid":{"rendered":"http:\/\/rdactionconsultant.com\/en\/?p=486"},"modified":"2025-11-27T18:29:35","modified_gmt":"2025-11-27T18:29:35","slug":"prepare-your-team-sred-audit-meeting","status":"publish","type":"post","link":"https:\/\/rdactionconsultant.com\/en\/blog\/prepare-your-team-sred-audit-meeting\/","title":{"rendered":"Prepare your team for SR&ED Audit meeting"},"content":{"rendered":"
\nThe audit by the CRA is certainly THE crucial moment in the claiming process for SR & ED tax credits. We can avoid an audit, but we can certainly minimize the negative impacts. In earlier articles in this series, we have established that first of all, the announcement of a SR & ED audit must begin by asking the right questions and understanding the\u00a0stakes\u00a0You must then select who will be there.<\/p>\n

Let’s move to the third step: How to prepare your team for the audit meeting.<\/p>\n

\u00ab No one meets with the CRA R&D tax credit auditors without being prepared, not knowing their role and what will happen\u00a0\u00bb<\/div>\n

\u00a0Prepare why?<\/h2>\n

Do your people know what to say?\u00a0How to tell it?\u00a0Let us be clear.\u00a0We don\u2019t talk about hiding information or defraud the tax.\u00a0However, it is essential to use the time we have available to convince the CRA without wasting time on irrelevant subjects.\u00a0We must therefore organize our meeting efficiently.<\/p>\n

    \n
  • This is not a meeting like any other.\u00a0No one is accustomed to this kind of meeting.\u00a0This is not about selling a product, or understanding the needs.\u00a0This is about convincing a listener of the merits of our claim, that we satisfied the eligibility criteria project.\u00a0The what?<\/u>This is precisely why we must prepare everyone attending the meeting.<\/li>\n
  • This is about “meeting the tax guys”.\u00a0For many employees, this prospect is horrifying.\u00a0They never had to meet an auditor before.\u00a0 It’s already tough for many employees to meet with clients. But this is even worse.\u00a0It’s official.\u00a0Why are they there? Will I be sued or go to jail if things go wrong?\u00a0They do not know what’s coming.\u00a0The unknown is scary.\u00a0That is why we must demystify it. We must show them what will happen, what is the agenda, who are the CRA auditors and reduce their anxiety about this unknown situation.<\/li>\n
  • We do not know how they will react in real time.\u00a0We must guide them, make them practice to deliver the relevant content. This is the best way to make sure that the staff provides the important arguments quickly and directly during this meeting.\u00a0Under pressure, some people shut off, or become very anxious and lose the thread of their argument.\u00a0Others, however, will unpack tons of useless information and give the impression of an attempt to “drown the fish”. Guiding all those who will attend limits these kind of risks.<\/li>\n
  • Everybody\u00a0at the meeting must to know what it is going on, what his\/her role is, what he has to say or not and how to say it.\u00a0Otherwise, he represents a free electron, a potential source of problem or wrong quote that may affect the decision of the auditor.<\/li>\n<\/ul>\n

    How to prepare?<\/h2>\n
    \u00ab ALL presenters must prepare and practice their part at least twice \u00bb<\/div>\n

    Good staff preparation extends over at least two meetings so that everybody becomes familiar with the progression of the meeting.\u00a0ALL presenters must prepare and practice their part at least twice.<\/p>\n

      \n
    • In the first preparation meeting, everyone is informed of what is coming, of their role and duties they have to deliver before the second practice meeting.\u00a0We introduce them to the CRA visitors, their vision and agenda.\u00a0We also ask them for a very preliminary presentation of their projects.\u00a0We offer a presentation template (eg. a PowerPoint presentation containing extracts from the T661 descriptions, etc.) and a summary of the costs claimed for their project.\u00a0We discuss the strengths and weaknesses of their projects in order to obtain their views.\u00a0 A well exposed weakness can often be resolved by discussing with the senior technical resource involved in the project.<\/li>\n
    • Between the first and the second meeting, presenters must re-read the descriptions submitted in the\u00a0T661 form,they must find all relevant documentation to illustrate their point.\u00a0They should also reorganize the presentation in “their own words.”<\/li>\n
    • Finally, the second meeting is more efficient. The presenters are ready.\u00a0We must now listen and criticize the content and the format. We guide them to prevent from putting themselves into trouble.\u00a0We help them deliver their best arguments, their best reasoning, their best examples.<\/li>\n<\/ul>\n

      This preparation is done in a logical role play game.\u00a0Presenters must express themselves in their own words, as if they were in the meeting.\u00a0Someone (eg. your consultant) plays the role of the CRA advisor.\u00a0This is necessary to give presenters the feeling of the meeting, the right frame of mind and to avoid the pitfalls.<\/p>\n

      Demonstration or prototype: Will this demo add to the argument?\u00a0Does it bring important clues?\u00a0Is it visual enough to keep the auditor\u2019s interest?\u00a0The additional preparation and presentation time of a demo is rarely justified by real benefits.\u00a0If there is no gain, just drop it.<\/p>\n

      Conclusion<\/h2>\n

      YOU\u00a0MUST PROPERLY PREPARE for the audit meeting with the CRA. The claimed money is then on the table and if the CRA is there, it is likely they are here to challenge one or many activities you claimed.<\/p>\n

      In the next article we discuss\u00a0what to prepare with your team for the audit meeting.<\/p>\n

      What do you think ?\u00a0Have you lived through audits where you had no idea what was coming until the “train was on you”?\u00a0How have you prepared (or not)?\u00a0What were the results?\u00a0What lessons have you learned?\u00a0Why ?<\/p>\n

      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 ?<\/p><\/div>\n

      <\/p>\n","protected":false},"excerpt":{"rendered":"

      The audit by the CRA is certainly THE crucial moment in the claiming process for SR & ED tax credits. We can avoid an audit, but we can certainly minimize the negative impacts. In earlier articles in this series, we have established that first of all, the announcement of a SR & ED audit must…<\/p>\n","protected":false},"author":8,"featured_media":1001362,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[75],"tags":[],"class_list":["post-486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-audit"],"acf":[],"yoast_head":"\nPrepare your team for SR&ED Audit meeting | R&D Action Consultant<\/title>\n<meta name=\"description\" content=\"Do your employees know what to say and how to say it at the SR&ED Audit meeting ? 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