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#tax-law
Asked: a month ago

What should I do if I received a "Referral for Judgement" letter from CRA?

I received a "Referral for Judgement" letter from CRA. It states that I must pay $13,212.42 to ESDC Remittances. The loan was from the mid-2000s and was written off years ago. It is not on any of my credit histories, and… (Read more)


Samuel Michaels

Founder & Lawyer, SM Legal


In these circumstances, it will likely be necessary to speak with an accountant and tax lawyer to discuss your options. To find a lawyer, you may benefit from contacting your local law society referral service or JusticeNet.


Answered: a month ago
#tax-law
Asked: a month ago


Dominic Alfred

IP and Technology Lawyer, Alfred Law


Thankfully, individuals can claim SR&ED expenditures for their business activities.


Individual taxpayers need to file an income tax return, and include a completed Form T661.

The T661 form can be used to provide technical information and to calculate the qualified SR&ED expenditures used to receive the Investment Tax Credit.


To claim SR&ED expenditures, with your income tax return, file completed:


You can report the SR&ED expenditures and investment tax credit no later than 12 months after your business income tax return is due. For more information on the SR&ED reporting deadlines see the SR&ED Filing Requirements Policy.


Answered: a month ago
#tax-law
Asked: a month ago


Dominic Alfred

IP and Technology Lawyer, Alfred Law


In order for Canadian corporation to claim SR&ED expenditures for their business activities, they should file an income tax return and include a completed Form T661.


The T661 form can be used to provide technical information and to calculate the qualified SR&ED expenditures used for the Investment Tax Credit. (ITC)


To claim SR&ED expenditures and the investment tax credit, file both of these forms, completed, with your tax return:




Answered: a month ago
#tax-law
Asked: a month ago


Dominic Alfred

IP and Technology Lawyer, Alfred Law


When you file your claim with your tax return, the tax center will check it for completeness.


If your claim is processed without further review, the CRA assesses your income tax return.


If they need to do a further examination, they will send your return to a coordinating tax services office, where technical and financial reviewers will review your claim.


Answered: a month ago
#tax-law
Asked: a month ago


Dominic Alfred

IP and Technology Lawyer, Alfred Law


The business environment in which SR&ED work is carried out influences the type and sources of evidence that are available to support the SR&ED claim.


Here are some examples of supporting evidence:


  • project planning documents
  • documents on design of experiments
  • experimentation plan
  • design documents and technical drawings
  • project records, laboratory notebooks
  • design, system architecture and source code (software development)
  • records of trial runs
  • project progress reports
  • minutes of project meetings
  • test protocols, data, results, analysis and conclusions
  • final project report or professional publication
  • photographs, videos
  • prototypes, samples
  • scrap, scrap records
  • contracts, lease agreements
  • records of resources allocated to the project, time sheets, activity records, payroll records
  • purchase invoices and proof of payment
  • accounting records


Answered: a month ago
#tax-law
Asked: a month ago


Dominic Alfred

IP and Technology Lawyer, Alfred Law


According to the CRA, for all the expenses qualifying under SR&ED, you can get at least 15% - and as much as 35% - as an investment tax credit (ITC), and up to $3 million.


If you accrue any unused ITCs, you can carry them back 3 years or forward 20 years, and apply those credits against tax payable for other years.


Answered: a month ago
#tax-law
Asked: a month ago


Dominic Alfred

IP and Technology Lawyer, Alfred Law


You can claim expenditures incurred for the SR&ED work performed during the year. These may include expenditures for:


  • salary and wages
  • materials
  • SR&ED contracts
  • overhead
  • third-party payment


Answered: a month ago
#tax-law
Asked: a month ago


Dominic Alfred

IP and Technology Lawyer, Alfred Law


To qualify to receive the (SR&ED) tax incentive, the work, for the most part, must be conducted in Canada and must be either basic research, applied research or experimental development:


  • Basic research: This is work carried out to advance scientific knowledge without a practical application in view. It is usually done in universities or research institutes.
  • Applied research: This is also work carried out to advance scientific knowledge but, unlike basic research, it is done with a specific practical application in view.
  • Experimental development: This work is carried out to achieve technological advancement.


Answered: a month ago