Procrastinators take heed: In the world of SR&ED, the early bird really does get the worm.
One of the big deadlines for submitting a company’s SR&ED tax claim is fast approaching; June 30th, 2014 is the magic date! If a company has a fiscal year-end of December 31st, 2012, all paperwork MUST be in to the CRA by the June cut-off or the company loses their opportunity to claim.. The pressure is on.
Around 20,000 companies claim SR&ED every year – that’s a lot of paperwork for the CRA office to go through! Just imagine if the majority of claimants were to submit on the same day.
To alleviate the bulk of stress surrounding a SR&ED submission, most consulting firms suggest that a company submit their claim 3 months in advance. This gives ample time for the CRA to go through the paperwork completely, and if something is missing or incomplete this gives the claimant time to send (or re-send), further documentation that the CRA may need.
This is all fine and dandy, but issues can still arise even with submitting a claim 3 months in advance. That’s why we prefer to submit 12 months prior to the absolute deadline. Why?
Check out some of the benefits of submitting a SR&ED claim early:
One of the biggest reasons a company does not apply for SR&ED a second time is because of a bad experience. By getting your claim in just a few months early, you can be better organized, meaning a more relaxed and stress-free claim experience – opening the doors to further SR&ED claims and further benefits for your company.
Michelle Brooks, Author