SCIENTIFIC RESEARCH & EXPERIMENTAL DEVELOPMENT
SR&ED INVESTMENT TAX CREDITS
SERVICES
   SCIENCE Science can only ascertain what is, but not what should be . . . Albert Einstein
   TECHNOLOGY To take risk is . . . the essence of economic activity . . . Peter F. Drucker
   

PREPARATION OF SR&ED CLAIM

  • SR&ED policies, practices, standards, and guidelines
  • SR&ED planning
  • SR&ED organization, configuration, and structuring
  • SR&ED scope, rationale, methodology, verification, and compliance
  • Preclaim Project Review (PCPR) -- eligibility of R&D
  • SR&ED claim process: Technical Parts 2 and 4 of Form T661 - Scientific and Technological Project Information
  • SR&ED documentation
  • SR&ED review, audit, and dispute resolution.

SPECIALIZED FIELDS OF RESEARCH

  • Software development
  • Digital systems
  • e-Business/e-commerce
  • Internet applications
  • Transaction systems
  • e-Publishing
  • Knowledge bases
  • Artificial intelligence
  • Robotics
  • Automation
  • Infrastructure.
SR&ED CLAIM: FORM T661 - TECHNICAL PARTS 2 AND 4

A successful SR&ED claim must meet the requirements of regulation. The following information is adapted from Form T661 and Guide to Form T661.1-2

PART 2: DETAILED PROJECT DESCRIPTION

  1. Scientific or technological objectives
  • Verifiable, quantitative objectives of scientific or technological work.
  1. Scientific or technological advancements
  • Acquisition of knowledge advancing science or technology.
  1. Scientific or technological uncertainties
  • Nature of the uncertainty
  • Systematic investigation used to remove the uncertainty
  • Identification and analysis of technological issues, factors, risks, and problems
  • Support for statement of uncertainty and risks.
  1. Work performed -- systematic investigation
  • Nature of the investigation
  • Hypotheses formulated
  • Scientific methodology used
  • Experimental or analytical testing
  • Experimental results -- analysis and interpretation
  • Conclusions -- progress made toward achieving S&T objectives.

Work performed -- activities

  • Technological planning
  • Development of technological strategies
  • Management/supervision of technical support
  • Overhead activities - long-term planning of SR&ED activities; technological staffing/training; technical maintenance.
  1. Supporting technical documentation
  • Planning and review of technical records
  • Documentation - objectives of project, work carried out, project’s conclusions
  • Analysis of problems - design documents, drawings, test data and results, progress and status reports, laboratory notes, diaries, chronological records, electronic files
  • Technical publications
  • Job descriptions
  • ASA and SUE equipment used for SR&ED
  • SR&ED contracts.

PART 4: BACKGROUND INFORMATION

Sources:
1 T661 Claim for Scientific Research and Experimental Development (SR&ED) Expenditures Carried on in Canada. Ottawa, ON: Canada Customs and Revenue Agency, December 27, 1999. PDF document at 
http://www.ccra-adrc.gc.ca/E/pbg/tf/t661eq/README.html.
2 T4088 Claiming Scientific Research and Experimental Development Expenditures - Guide to Form T661. Ottawa, ON: Canada Customs and Revenue Agency, January 10, 2000. PDF document at  http://www.ccra-adrc.gc.ca/E/pub/tg/t4088eq/README.html.
3 Guide to Conducting a Scientific Research and Experimental Development Review. Part I: The Technical Review. Prepared by the SR&ED Directorate, Canada Customs and Revenue agency in co-operation with industry partners and stakeholders. Ottawa, ON: Canada Customs and Revenue Agency, January 14, 2000. HTML document at http://www.ccra-adrc.gc.ca/taxcredit/sred/oc-man-e.html.
4 Scientific Research and Experimental Development -- Administrative Guidelines for Software Development. No. 97-1. Ottawa, ON: Canada Customs and Revenue Agency, February 28, 1997. HTML document at http://www.ccra-adrc.gc.ca/taxcredit/sred/858a-e.html. Information Circular at http://www.ccra-adrc.gc.ca/E/pub/tp/ic97-1et/ic97-1e.txt.html.
5 Industrial Program Research Assistance (IRAP) Financial Assistance. Ottawa, ON: National Research Council Canada, 2000, at http://www.nrc.ca/irap/finance.html.
6
National Research Council Canada, Ottawa, ON, 2000. Website at http://www.nrc.ca.
  

FOCUS

  • SR&ED Uncertainty and Risks
  • SR&ED Decision Factors
  • SR&ED Claim Process

Specialized Fields of Research:

  • Software Development
  • Digital Systems
  • e-Commerce/e-Business
  • Internet Applications
  • Transaction Systems
  • e-Publishing
  • Knowledge Bases
  • Artificial Intelligence
  • Robotics
  • Automation
  • Infrastructure.

OBJECTIVES

  • Successful SR&ED ITC Claim
  • "Right Risks"* Selection and Management
  • Wealth Creation through Innovation

PRINCIPLES

  • Objectivity
  • Integrity
  • Modern Scientific Method
  • Confidentiality

SERVICES

  • SR&ED Policies, Practices, Standards, and Guidelines
  • SR&ED Planning
  • Structuring, Configuration, and Organization of S&T Work
  • Planning of the SR&ED Claim Process
  • Preparation of Technical Parts of SR&ED Claim
  • Preparation of Detailed Scientific and Technological Project Information - Objectives, Advancements, Uncertainties, Systematic Investigations, Support Documentation
  • Assistance with SR&ED Review, Audit, and Dispute Resolution
* The notion of "right risks" is discussed in Peter F. Drucker's Technology Management and Society. Peter F. Drucker, 1958-59, 1961, 1966-67, 1970. New York, NY: Harper & Row, Publishers, Inc., 1977, at 132.

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