SR&ED Advisory
Canada's largest R&D incentive program offers significant tax credits for qualifying activities. We help you maximize your claim while ensuring full CRA compliance.
Understanding SR&ED
The Scientific Research and Experimental Development (SR&ED) program is the Canadian government's largest single source of support for industrial research and development. Administered by the Canada Revenue Agency (CRA), the program provides over $3 billion annually in tax incentives to Canadian businesses.
The program encourages businesses of all sizes and in all sectors to conduct R&D that will lead to new, improved, or technologically advanced products, processes, or services.
Eligible businesses can claim both federal and provincial tax credits, with combined rates reaching up to 64% of qualifying expenditures for Canadian-controlled private corporations (CCPCs).
Key Benefit
CCPCs can receive refundable tax credits of up to 35% federally, plus additional provincial credits, even if they have no taxable income.
Tax Credit Rates
CCPCs (Refundable)
On first $3M of qualifying expenditures
CCPCs (Non-Refundable)
On expenditures over $3M
Other Corporations
Non-refundable credit
Ontario Innovation Tax Credit
Refundable for qualifying CCPCs
Ontario R&D Tax Credit
Non-refundable
Combined Rate (CCPC)
Federal + Ontario refundable
* Rates are subject to change. Other provinces offer additional credits. Contact us for current rates applicable to your situation.
Eligibility
SR&ED eligible work must meet three criteria: technological uncertainty, systematic investigation, and technological advancement.
The work must address a technological problem that cannot be resolved through standard practice or routine engineering.
A systematic approach involving hypothesis, testing, and analysis must be used to resolve the uncertainty.
The work must aim to achieve a technological advancement—new knowledge that advances the understanding of technology.
Eligible Expenditures
Compensation for employees directly engaged in or directly supervising SR&ED activities.
Cost of materials consumed or transformed in the prosecution of SR&ED.
Payments to arm's length contractors for SR&ED performed on your behalf in Canada.
Proxy amount or actual overhead costs related to SR&ED activities.
Our SR&ED Services
From initial assessment to audit defense, we provide end-to-end support to maximize your SR&ED benefit.
We conduct a thorough review of your R&D activities to identify all projects that may qualify for SR&ED credits, including activities you may not have considered eligible.
Our engineers and technical writers prepare detailed project descriptions that clearly articulate the technological uncertainties, systematic investigation, and advancements achieved.
Our CPAs work with your financial team to accurately calculate eligible expenditures, ensuring all qualifying costs are captured while maintaining compliance with CRA requirements.
We prepare complete claim packages including Form T661, technical narratives, and supporting schedules, coordinating with your accountant to ensure proper integration with your tax return.
We manage all communication with the CRA on your behalf, responding to queries and providing additional information as required to support your claim.
If your claim is selected for review, we provide comprehensive audit defense support, preparing documentation and representing your interests throughout the process.
Our Process
We meet with your team to understand your business, R&D activities, and objectives.
Week 1
Weeks 2-3
We conduct technical interviews with your R&D staff to gather project details.
We prepare technical narratives and calculate eligible expenditures.
Weeks 3-5
Week 6
You review the claim, we finalize and submit to CRA with your tax return.
We track your claim and respond to any CRA inquiries on your behalf.
6-12 Weeks
FAQ
No. One of the significant benefits of SR&ED for Canadian-controlled private corporations (CCPCs) is that the investment tax credits are refundable. This means you can receive cash refunds even if your company has no taxable income. For non-CCPCs, the credits are non-refundable but can be carried back 3 years or forward 20 years.
SR&ED is not limited to specific industries. Any business conducting qualifying R&D activities in Canada may be eligible, including software development, manufacturing, engineering, life sciences, clean technology, food processing, and many others. The key is the nature of the work, not the industry.
Yes. You can file SR&ED claims for up to 18 months after the end of your fiscal year. If you've been conducting R&D activities but haven't claimed SR&ED, you may be able to submit claims for prior periods. Contact us to discuss your specific situation.
CRA reviews a portion of SR&ED claims each year. If your claim is selected, Henderson Consulting provides complete audit defense support at no additional cost. We prepare all documentation, attend meetings with CRA reviewers, and represent your interests throughout the process. Our thorough initial documentation means claims we prepare are well-positioned for review.
We typically work on a contingency basis, meaning our fee is a percentage of the credits we help you recover. This aligns our interests with yours and means there's no upfront cost. The specific percentage depends on claim complexity and size. We'll provide a clear fee proposal after our initial assessment.
Contact us for a complimentary consultation. We'll assess your R&D activities and provide a clear picture of your potential benefit.
Schedule a Consultation