Have you ever been through an SR&ED audit? Have you been through an audit in the past 5 years?
If you were lucky, you probably only spent a month preparing, and CRA probably still asked you for more information after their visit.
If you were not lucky, you might have spent as much as 2-3 years negotiating, arguing, debating, and scrambling for evidence that would satisfy your SR&ED auditor. Many companies are even denied after the lengthy process, because they didn’t even understand eligibility, and they didn’t have any of the documentation that CRA was looking for. That is even more frustrating and disheartening. Companies that go through this process often abandon the program, refusing to ever submit another claim, even if they were approved!
CRA wants your evidence to be well organized and easy to follow. If you make it easy for them, they will move on to another claimant that is less organized.
There’s no doubt that a full technical SR&ED audit involves a great deal of evidence:
Due diligence; SR&ED plan; design of experiments; data collection; evidence of analysis; designs & design revisions; sketches; meeting minutes; staff resumes; time tracking; payroll information; invoices; proof of payment; materials used and rationale; subcontractor invoices; statements of work; contracts with third-parties; overhead calculations; corporate information; shareholder information; organizational chart; and more.
Maybe you didn’t even know they could ask for all that stuff! But they can, and they do. A routine RFI (request for information) can make your head spin, and most companies struggle to prepare even with 30 days notice.
Is it worth it, you ask? Well, yes! SR&ED is the only part of the Canadian Income Tax Act that works like a true incentive program, with refunds for companies that aren’t even profitable!
What if you had a real partner and a solid methodology to ensure that you would be ready to prepare for any type of SR&ED audit within one day? Would that save your company a great deal of headache and frustration? Of course it would.
But how, you say? That’s impossible. It can’t be done.
Bond Consulting Group has the answer. We’re not just some SR&ED consulting firm that promises to “maximize” your claim. Bond is truly innovative – we deliver the most sophisticated SR&ED methodology in Canada – SR&ED Proof which is provided to all clients for free. With our easy-to-follow policy wizards, you’ll answer eligibility questions throughout the year as part of your documentation method. Then just upload the original contemporaneous evidence, and you’re ready to go.
And then the real miracle happens. If CRA initiates any type of audit (desk audit, financial audit, or full technical + financial), then you could be ready in as little as one day. Now, wouldn’t that be a relief!
Stop gambling with your SR&ED. Get organized and get ready in case CRA selects your SR&ED claim for review.
Contact Bond Consulting Group for a demonstration today!