When it comes to your SR&ED claim submission, it’s best to have all your ducks in a row.
Last month, we discussed the release of the CRA SR&ED Service Standards Results. Since then, the CRA has released updated service standard results; those from April 1st until June 30th. The new set of results was roughly the same, with the CRA keeping within the deadlines 96% of the time.
One of the keys to their ability to meet these Service Standards is whether or not the CRA has all of the required documents to complete the claim process. Luckily, even though the documentation requirements can be difficult there are several ways to keep your SR&ED claim on track.
All prescribed SR&ED documents and forms for a corporation’s SR&ED claim must be received by the CRA within 18 months of the corporation’s tax year end. A general rule of thumb that consultants use is no later than 15 months. This leaves enough time in case the CRA requests any further documents that may need to be sent in.
Keeping in mind that CRA has two very different processing times for claims submitted with tax returns vs. after tax return submission, it is far more advantageous to submit your SR&ED claim with your taxes; within 6 months of your corporation’s tax year end. CRA’s posted servicing times show that submitting a SR&ED claim with your corporate return can cut their processing time in half.
Organization is the key when developing your claim. Make 100% sure all documentation is available and organized so that, if it is needed, you can access it quickly. Here are a few examples of what can hold back a claim:
Most of the above can be avoided by simply having your files ready and in order.
There is one other point to consider that may have an impact on how quickly you get your benefits. SR&ED claimants are not expecting a giant cheque from the CRA. There have been instances that the SR&ED cheque arrived by regular mail and was left sitting on a desk, unopened, for months. Remember that not everything that is addressed from the CRA is bad news, especially when you’re involved in a SR&ED claim!
This may all seem a bit daunting, but remember there are SR&ED consultants available that have experience in all things SR&ED. They know exactly what needs to go to whom when, and will make sure all deadlines are met. A good consultant will explain the whole process including what their role is in helping you get maximum claim benefits as quickly as possible.
If you have questions about hiring a SR&ED consultant to help streamline your claim process, contact a BeneFACT® company SR&ED expert today.
*The information above is meant for informational purposes only, and not to be used as financial or legal advice.