Navigating Recessionary Times

Often businesses start laying off during recessionary times and start cutting off funding and investments to their R&D activity.  This sometimes leads to a spiral of decline in economic activities and businesses belly up.

Among many solutions, Government of Canada's SR&ED program might be your answer to both short and long term challenges. If you are looking for a constant source of incentives to keep investing in to your challenging R&D, CRA"s Investment Tax Credit (ITC) program in form of SR&ED might be your solution.  

Profitability and commercial success are not the necessary conditions. However, you must have incurred expenses in the fiscal year for doing business in Canada related to SR&ED projects. Such projects are essentially projects that undertake challenging R&D work but may run into cost over-runs or expenses that may not have been foreseen by the business. 

The federal government wants to provide incentive to such businesses who take the risk for challenging projects to ensure that talent and high paying jobs stay in Canada ensuring their tax base. Meanwhile, companies and businesses do not need to offshore activities to cut costs and are able maintain control and quality in their work. Undertaking such challenging projects require high spend resources which makes SR&ED program a natural choice for making use of the resources.

Canada, as part of OECD countries and G7 is one of the most generous countries to support R&D. If you are ready to make use of SR&ED program, do not hesitate to contact us to learn more.