SR&ED Myths

We have compiled a list of common myths surrounding the SR&ED program. In our experience, such myths are pervasive. It is this mis-information surrounding SR&ED that has caused businesses to lose out on millions of dollars which they have already earned. If you’ve made it this far, and still aren’t sure if SR&ED is right for you, please contact us to arrange a brief meeting where we can discuss in more detail.

  1. Myth: You need to perform Scientific Research in order to receive SR&ED funding.
  2. Myth: Innovation is required.
  3. Myth: Filing costs more time and money than it's worth.
  4. Myth: Companies who owe no taxes do not receive a refund.
  5. Myth: <insert sector here> does not qualify for SR&ED funding.
  6. Myth: I am not advancing technology.
  7. Myth: There was no uncertainty in my work.
  8. Myth: Work which involves 'trial and error' does not qualify.

  1. Myth: You need to perform Scientific Research in order to receive SR&ED funding.

    Fact: Scientific Research is not required. Almost all corporate SR&ED claims are for Experimental Development alone. Development is in its nature experimental, and much of what your company does on a day-to-day basis is eligible for significant SR&ED funding. Contact us to review your eligibility with a SR&ED expert.

  2. Myth: Innovation is required.

    Fact: Innovation or novelty are not required. SR&ED does not fund new products, it funds Experimental Development. The fact that one or even dozens of people have achieved your business goals before does not in any way lessen the amount of money you are eligible to receive.

  3. Myth: Filing costs more time and money than it's worth.

    Fact: With The Resonant Advantage, your investment in your SR&ED claim drops to a handful of hours, total. Other than the time spent in a few meetings with Resonant's SR&ED experts, you owe nothing until you get your refund cheque. Our fee is based on a percentage of that refund, so your profit from SR&ED is guaranteed. In contrast, visit our Stay Focused page to see how filing your own claim very often does cost more than it is worth.

  4. Myth: Companies who owe no taxes do not receive a refund.

    Fact: The SR&ED ITC is fully refundable for private Canadian companies (CCPCs). Even if you owe no taxes you can receive 100% of your SR&ED funding in cash each year.

  5. Myth: <insert sector here> does not qualify for SR&ED funding.

    Fact: Businesses in every technology sector, as well as some others, are eligible for SR&ED funding. SR&ED regularly funds claims in sectors such as farming, GreenTech, manufacturing, Information Technology (including software, software services, hardware, etc.), and many, many more.

  6. Myth: I am not advancing technology.

    Fact: Almost all companies performing development seek a Technological Advance as it is defined in terms of SR&ED. The SR&ED definition is frequently quite different from what most would think of as advancing technology, and this causes many companies to underestimate their eligibility and lose out on significant funding that they have earned. Please see our Determining Eligibility page for more details.

  7. Myth: There was no uncertainty in my work.

    Fact: As with a Technical Advancement, companies performing development almost always encounter a Technological Uncertainty. It is important to understand that this Uncertainty carries a very specific definition in regards to SR&ED, and this definition is often quite different from what most would think of as uncertainty. Don't let this myth cause you to lose out on significant funding that you have already earned. Learn more about Technological Uncertainty on our Determining Eligibility page.

  8. Myth: Work which involves 'trial and error' does not qualify.

    Fact: How CRA defines 'trial and error' is much different than how most in the commercial sector define it. 'Trial and error' in the form of blindly throwing darts at a board and seeing what sticks is not eligible. However, an experimental development process where a plan of action is developed and then attempted and analyzed for effect, and where errors encountered are overcome through cycles of revision and reimplementation of the plan, is certainly eligible. The latter is what most would refer to as 'trial and error', and it is this disconnect which leads many to underestimate their eligibility and lose out on significant funding that they have earned. More information is available on our Determining Eligibility page.