The key program takeaways of the plan is that the government is looking to reduce the tax compliance burden of SR&ED and create more transparency in the SR&ED tax credit program. We saw glimpses of this earlier with announcements like the FPAP Pilot Project.
Here are a few of the major points covered in the 2013 budget plan:
“This measure will apply to SR&ED program claims filed on or after the later of January 1, 2014 and the day of Royal Assent to the enacting legislation.” – Economic Action Plan 2013
Although it is mentioned that third party tax preparers will be required to disclose payment structure & fees, it is interesting to note that regulation of fees is not required. Last year, the Department of Finance issued a call for those in the SR&ED community to voice their opinions on the state of SR&ED contingency fees. Various responses, including a BeneFACT review, were submitted outlining the benefits of the contingency model. The department must have been listening as this is a definite positive step for SR&ED claimants.
For information about how your claim could be affected, contact a BeneFACT Consultant today.