Showing posts from December, 2008

SR&ED changes don't seem as dramatic as feared

Lots of discussion lately about changes made by the Canada Revenue Agency to the federal scientific research and experimental development (SR&ED) tax credit. The Canadian Advanced Technology Alliance (CATA) is concerned about the impact of the changes on the high-tech industry, and I think all the national accounting firms have published reports on the modifications to the program.

I read the reports and the information released by CRA and reached two conclusions: 1) most of the changes just make it easier for companies applying for SR&ED to give CRA the information it always wanted (which I'll focus on in just a second), and 2) the SR&ED application process is -- and apparently always has been -- tied to chiched notions of science and discovery having little to do with how companies conduct R&D (particularly in the ICT world), making the application process both burdensome and artificial.

That's been an eye-onener. While I've worked with companies for the la…