NEWS

New Form T661 and Guide - June 2, 2010

The CRA released the 2010 version of Form T661 and T4088 (Guide to Form T661).  Highlighted is IT 86-4R3 which refers to Technological Uncertainty or Obstacles which may occur because it is uncertain whether the goals can be achieved at all; or the taxpayer may be fairly confident that the goals can be achieved, but may be uncertain which path, route, approach, system architecture, integration method, algorithm etc. will work.  Technological uncertainty must be distinguished from work that is routine in nature.

Federal Legislation update - April 2010

Materials transformed can now be claimed under the Proxy method.   Under the Proxy method, companies can now claim "materials consumed or transformed" during execution of the SR&ED project.  Section 37(8)(a)(ii)(B)(V) of the Income tax Act.

SR&ED Program Update - April 2010

The program provided in excess of $3 billion in Investment Tax Credits (ITCs) to over 19,000 claimants in 2009.  Many large corporations and industry continue to lobby the federal government to consider broader refundability of ITCs, rather than the current policy that provides refunds only to Canadian Controlled Private Corporations (CCPCs).

Alberta SR&ED is here - January 2009

The Alberta budget was released on April 22, 2008 – here’s an excerpt.

Alberta’s competitive business tax environment will be enhanced with a new provincial tax credit to encourage scientific research and experimental development (SR&ED). This refundable credit is worth 10% of eligible expenditures on research and development made after December 31, 2008 up to $4 million for a maximum annual credit of $400,000.

This measure will initially provide $60 million towards building knowledge-based industry, growing over time as businesses undertake more research and development.  The Alberta SR&ED investment tax credit is refundable for all companies. This will be of special benefit to start-up and early stage companies, because they will still be able to receive the credit even though they may not be earning enough income to pay income taxes.

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