Wow!! There are still some innovative manufacturing companies that are not filing a claim under the very lucrative SR&ED Tax Credit program.
In talking with our EMC members, most are now taking advantage of this government program to offset the costs associated with their technological innovations or in some cases to offset the costs of inflation due to increased labour, increased material costs and other costs incurred due to regulatory requirements. But amazingly enough, some are not and therefore are missing out on getting this positive financial benefit.
So, what are the reasons for not filing?? Well I am sure you have heard or even experienced these yourself:
-Adversity to government programs; too much work, don’t trust them, heard bad things, just not sure what qualifies and what it might mean to my company, etc.
- Have given up because of a bad experience with the program reviewers. Spent resources collecting documentation, writing narratives, only to be told the projects/expenses don’t quality.
To the first reason, I would suggest that it only takes a few minutes in discussion with a trusted expert to get the necessary information to make an informed business decision. Ie: is the effort worth the return. And yes, in the majority of cases it definitely is.
Don’t make the decision to take advantage of the program or not based on a lack of knowledge or negative hearsay.
To the second reason, as in anytime you fail at something, you should learn from it, and the best way to learn from a SR&ED rejection is to find out what went wrong; and there can be many reasons. But none of them should cause you to give up, but should provide a basis for spending some time to find out what prevented your claim from being “accepted as filed”. It’s the time to have a fresh look and also to have an expert in the SR&ED program and one that understands your business, products and processes, review your submission.
If you have a product failure do you stop producing, if you have a process failure do you shut down for good, if you lose out on a bid for new business do you stop quoting; No!! You take the time to find out what you need to do to fix the problem and then do it.
Yes, there are times you make a decision to STOP if there just is no good viable solution but that does not happen often and not before the situation is looked at and analyzed thoroughly.
So, if you are not claiming successfully and getting the $$$ back from the program you deserve, don’t give up. Let us help by putting you in touch with the experts that can give you the information you need to make the best decision on whether to file for the first time or to try again.