CRA Changes Method in Processing SR&ED Tax Credit Claims
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In an effort to accelerate the processing of SR&ED tax credit claims, CRA has changed it's method of processing claims. We at RDP believe it makes good business practice to file your claims within six months after year end.
Prior to this change, any SR&ED claim submitted would first go the taxation centre, than forwarded to the district office to be screened. If upon screening, the SR&ED claim was accepted as filed, the claim would be forwarded back to the taxation centre for a Notice of Assessment and cheque to be issued. Now, the taxation centre will
screen the SR&ED claims. SR&ED claims will no longer be forwarded to the district office unless a review is going to take place. If the taxation centre does process the claim as filed, processing time should decrease significantly. How this may impact your claim While the claims will likely be processed quicker under the new process, RDP cannot emphasize enough on having your claim thoroughly reviewed for completeness. The new process will certainly lead to more detailed mechanical checks to ensure that all information required is included. Anything determined incomplete stands a high degree of certainty to being rejected. Procrastinating until the fifteenth to eighteenth month also may put your claim at risk. At our recent stakeholder meetings with CRA, we have been told of companies missing one page in the submission or missing the number of employees on the T661 etc, with the entire claim being rejected, resulting in tens of thousands of dollars of lost SR&ED credits. CRA has made it clear to us that their hands are tied and there is no recourse to the taxpayer. We at RDP Associates believe it is imperative that SR&ED claims are filed within six months after year end. We are more than happy to assist you in a full claim preparation, or review your own claim prior to submission. To discuss this matter in more detail or any other SR&ED tax credit related matter please contact Chris Bodnar at 416-725-0458.
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