The much anticipated SR&ED Form T661 revision has finally been released. The CRA has said all along that the changes would be released in October, and proved true to their word by releasing the new form on October 31st. So, what exactly were the revisions and what do the changes mean for future SR&ED claims?
First proposed in the 2013 Federal Budget, these changes are “…to be consistent with the consolidated SR&ED policy documents released in December 2012”. Here are a few of the revisions made to the T661:
Another large change is the addition of Part 9. Below is an image of the actual Part 9 from the Claim Preparers Information (Scientific Research & Experimental Development (SR&ED) Expenditures Claim:
As indicated in the form, it is now required to include the following information on all claims:
It is clearly stated directly on the form that a penalty of $1000 may now be enforced if any information is missing, incomplete or inaccurate in this section and that the preparer will be jointly or solidarily liable for the penalty.
The new addition of Part 9 may seem a little drastic at first, but it’s simply a way for the CRA to know exactly how much claimants are paying out to 3rd party preparers, especially after so much discussion about contingency fees over the past few years. What we hope is that this change will provide proof of our belief that contingency fees are actually a very reasonable method of payment for the consulting process, and that fees aren’t nearly as exorbitant in the industry overall as once believed.
This form will be accepted as of now, and required as of January 1st, 2014. For further information on the changes above, contact a BeneFACT consultant today.