FAQ

Below is a list of Frequently Asked Questions regarding the SR&ED program. Please contact us if you have a question which is not answered below, or if you would like to arrange a meeting with us to discuss in more detail.

  1. Isn't my accountant or CFO already claiming all the necessary incentives?
  2. Will I get a cash refund or a tax reduction?
  3. My company pays no taxes, will I still receive a cash refund?
  4. Are there any restrictions on the SR&ED funding?
  5. How long before I receive my refund?
  6. What size refund can I expect?
  7. Can I claim SR&ED retroactively?
  8. Is there a deadline?
  9. How do I determine what is eligible?
  10. We don't own any intellectual property or hold any patents, is our work still eligible?
  11. How do I file for SR&ED?
  12. Will my accountant be involved in the SR&ED claim?
  13. What happens if I am audited?
  14. What is your claim success rate?
  15. How much time will it take to file?
  16. How much will it cost to file?

  1. Isn't my accountant or CFO already claiming all the necessary incentives?

    Not necessarily. SR&ED is separate from your company's financial filing. Most of the work has to be performed by a high-level technical resource, usually the Director of Development or CTO. Your CFO may not know the technical side well enough to understand that you are eligible, and your CTO likely is not aware of the various government tax incentive programs. One of the main reasons that so many companies miss out on their annual SR&ED refund is because it falls between the cracks of your Financial and Development teams.

  2. Will I get a cash refund or a tax reduction?

    You will get a cash refund for your SR&ED ITC (Investment Tax Credit) if you are a Canadian Controlled Private Corporation. Otherwise, publicly traded, or foreign-controlled corporations pool their SR&ED ITCs and use them to offset current and future taxes owing. This in itself can be seen as an asset to investors or potential buyers.

  3. My company pays no taxes, will I still receive a cash refund?

    Yes. Contrary to a common SR&ED Myth, even if you owe no taxes, your company can receive 100% of your SR&ED ITC as a cash refund every year.

  4. Are there any restrictions on the SR&ED funding?

    No. The refund you receive from SR&ED can be used for whatever purposes you choose. It is not a grant and does not have to be repaid.

  5. How long before I receive my refund?

    CRA's service standards aim to have your refund mailed to you within 120 days for a new filing and 240 days for an amended filing. While not common, with a well constructed claim, Resonant has seen its clients' refund cheques for amended filings arrive in as few as 60 days. The best way to ensure a speedy refund is to contact us to get started today.

  6. What size refund can I expect?

    Please see our Estimating Your Refund page to learn more about what size refund you can expect.

  7. Can I claim SR&ED retroactively?

    Yes. However, there is a deadline approaching! You may amend a previous year's T2 to include a SR&ED claim, but the claim must be received by CRA within 18 months of your Financial Year End. Don't delay in contacting us, or you may lose forever the money you've already earned.

  8. Is there a deadline?

    Yes. The SR&ED claim must be received by CRA within 18 months of your Financial Year End.

  9. How do I determine what is eligible?

    Please see our Determining Eligibility page to learn more about how you can identify which aspects of your work meet the SR&ED criteria.

  10. We don't own any intellectual property or hold any patents, is our work still eligible?

    Yes. This question stems from another common SR&ED Myth. SR&ED eligibility is based upon the type of development you do and is not concerned with whether you own the intellectual property, whether the product is novel, or even whether your development is successful!

  11. How do I file for SR&ED?

    SR&ED funding is claimed on your T2 as part of your corporate tax filing. Two SR&ED-specific forms are added to your regular tax filing: the Federal T661 (aka: Schedules 32 & 60) and its Provincial equivalent (BC: T666 aka: Schedule 425).

  12. Will my accountant be involved in the SR&ED claim?

    Yes. Resonant Consulting works with your accountant to complete the forms and paperwork necessary to file for SR&ED. You and your accountant maintain 100% control over your financials and filings.

  13. What happens if I am audited?

    Please see our Protect Your Claim page to learn more about how Resonant Consulting works with CRA to cooperatively resolve the SR&ED Claim Review process.

  14. What is your claim success rate?

    Resonant Consulting is proud of our 100% claim success rate. Our Philosophy and our history of thorough and accurate claims have earned us a solid reputation among CRA's SR&ED review staff.

  15. How much time will it take to file?

    Very little time on your behalf. The time required on your behalf depends upon a few factors, including the complexity of the work you do and the method chosen to determine eligible costs. The total time investment required by your staff will amount to only a handful of hours per year.

  16. How much will it cost to file?

    There are no fees upfront. Our fee is entirely contingent upon your successful refund, and payable only after you receive your SR&ED refund cheque from CRA. We are confident that The Resonant Advantage will guarantee you SR&ED funding. It is that confidence which enables us to incur all the risk in your SR&ED claim.