SR&ED CLAIM CASE STUDY
A manufacturing company that specializes in niche products (fans, heaters and mixers) approached RDP Associates Inc. (RDP) to defend an SR&ED funding claim that was denied by the CRA.
RDP reviewed the denied claim and CRA “30 day letter” informing the company that their application for SR&ED funding was denied. After gathering contemporaneous documentation, we drafted a detailed response to address CRA’s issues. When a Notice of Assessment (NOA) was received, RDP prepared and filed a formal appeal on behalf of the company.
The company had successfully prepared their own SR&ED claims for many years; however, a recent denial after a CRA onsite review led them to seek RDP’s expertise. In addition to defending their SR&ED projects, they also wanted us to prepare future claims as well as implement a system to efficiently document critical R&D information.
- RDP’s experienced SR&ED consultants worked with the company simultaneously to prepare claims for the following two years. Our team gathered documentation and evidence for the claim, rewriting project descriptions with a focus on observation and advancement, and determining all eligible R&ED expenditure.
- RDP also implemented an SR&ED screening system to simplify and expedite claim preparation and improve the claim defense.
- The following year, SR&ED funding claims were filed promptly. However, on account of the previous rejection, CRA again conducted a full onsite review which RDP was able to defend successfully.
RDP achieved several notable results for this client. Here are the most significant ones:
- After the onsite review, CRA accepted all the projects that were claimed for the following years based on the technical merits.
- 84% of all the qualified costs were accepted for the following years amounting to a total of $337,700.
- The following year, CRA reviews were completed in a much shorter time frame than the denied claim.
- The effort the company and its personnel have spent on the denied claim is more than double the time and effort involved in claim preparation for the following 2 years with audits factored in.
- The denied claim appeal is still in process with a strong evidentiary case.
- The company has received a very large increase in SR&ED funding in the 2 following years. They have accomplished this with less time and effort for their personnel and also implemented a system that makes their claims more reliable.
RDP’s extensive experience with government grants have resulted in a seamless claim preparation process that yields maximum benefits. We have outlined the main reasons for our effectiveness.
- Detailed approach: RDP’s peer-to-peer approach delves into the scientific work in more detail to fully understand what is being accomplished on a technology level.
- Scientific, technological and financial expertise: RDP’s experienced team of scientific and financial experts are second to none. We help dispels common myths regarding what qualifies as R&D for successful claim preparation.
- Maximum returns: RDP prepares thousands of claims a year. We understand all the nuances of the SR&ED funding program and ensure that every eligible project, activity and cost is claimed.
- CRA audit experience: RDP has dealt with the CRA on many occasions. There are many steps in an audit process that can cause delays or outright rejection that RDP can identify and avoid.
Contact us online to schedule an appointment for a Free Assessment to determine your eligibility for SR&ED funding, tax credits and government grants or a review of previous claims.