INNOVATION
It’s also important to provide strong supporting evidence for a claim; otherwise, it will likely be rejected. Don’t wait until a project is complete to start compiling documentation. “The key is to recognize SR&ED eligibility at the earliest possible time and have the technical and financial mechanisms in place to track and document it,” says Dr. Vela-Estrada. Documentation can include but isn’t limited to: • planning documents • technical drawings • project records • records of trial runs • progress reports • project meeting minutes If a claim is selected for review, the CRA will send a research and technology advisor and financial reviewer to the business for a site visit, and there might be requests for further information. “It takes quite a bit of due diligence to make sure your project follows the rules,” says Mr. James, the Biomech engineer. “You have to prove you have a technological challenge, a way to overcome the technological challenge, and a way to test the solution.” With help from a consultant, he plans to make another claim for his latest technological marvel. It’s still under wraps in his workshop, but he will say that it’s another mobility device, this time for recreational purposes. “It’s something the market hasn’t seen yet, and it promises to improve quality of life for people with spinal cord injuries,” he says. “It’s going to be cool. It might even be a showstopper.”
process easier and increase the odds of success. “It could save companies time if they consult with someone who has knowledge of the program. It all depends on their resources and how comfortable they are in applying. Some apply but have been discouraged because the process can be difficult,” notes Dr. Vela-Estrada. Prior to joining Grant Thornton, Dr. Vela-Estrada spent 20 years doing engineering research, often helping prepare SR&ED claims. He also worked for CRA as a research and technology advisor, reviewing SR&ED claims from a technical perspective. For companies interested in applying for SR&ED tax credits, he has some tips to make the process smoother. To start, he recommends that businesses implement best practices to increase the odds of a successful application, such as: • appoint a key individual to manage their SR&ED program • develop a list of hints to identify possible SR&ED in the organization • create a list of projects with SR&ED potential at the beginning of each fiscal year and continually validate it — especially with someone who has deep knowledge of the program • create internal mechanisms to capture technical and financial information and records for potential projects • check with key personnel throughout the year for new projects, the progress of ongoing projects, and record-keeping updates • instill an SR&ED culture in the organization
A MIND FOR ORTHOTICS The Scientific Research & Experimental Development Program has given Kelly James, P.Eng., the incentive — both financial and motivational — to keep turing ideas into practical devices. In the 1990s, he designed the revolutionary C-Leg prosthetic (shown here) while working at the University of Alberta. His latest mobility aid is top secret for now. -photo by Corinne Lutter
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