Monthly Archives

February 2012

Ombudsman’s Observation Paper on SR&ED Released (posted Feb 13, 2012)

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The much anticipated Ombudsman’s report on SR&ED was released February 10, 2012. When commissioned in September 2009, the intent was to examine the fairness of CRA’s administration of the SR&ED program. The enquiry looked into specific concerns regarding regional administrative disparities, eligibility discussions, the rationale provided regarding technological eligibility, the Administrative Second Review, and the Appeals Process. The final report offers an overview of the facts considered and possible rationale for perceptions on the part of claimants and consultants.

A copy of the report can be found on the Government of Canada’s website: http://www.oto-boc.gc.ca/obsppr/frnss/obs-frnss-eng.pdf.

 

Note: TSGI does not maintain this news article after its initial posting. Readers are further advised that the information presented here may not be sufficient for unassisted tax planning. Please contact a TSGI representative if you require clarification or other assistance regarding this topic.

Proposed 2012 Alberta Budget Includes $25M increase in SR&ED funding (posted Feb 10, 2012)

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In the February 9, 2012 Alberta budget announcement, Minister Liepert proposed a welcome change to the Alberta SR&ED investment tax credit (ITC). When first introduced, the Alberta expenditure base was reduced by federal ITC’s earned in the prior year, creating a complex, iterative, “double grind” situation which reduced the net benefit to the taxpayer.

In the 2012 budget, the Minister has proposed to eliminate this grind to the Alberta SR&ED credit, effective for tax years ending after March 31, 2012. The change is expected to inject a further $25M in to the Alberta SR&ED program.

TSGI was the first company to identify this complication with the Alberta SR&ED program, and we have maintained frequent communication with the Ministry of Finance and the Alberta Tax and Revenue Administration ever since. We are pleased that this discourse has been undertaken in earnest, and has contributed to the elimination of the double grind. We believe the Minister’s decision brings the program more in line with the intended goals and will benefit all companies conducting SR&ED in this province.

Further information on the proposed Alberta 2012 budget please refer to: http://budget2012.alberta.ca/

 

Note: TSGI does not maintain this news article after its initial posting. Readers are further advised that the information presented here may not be sufficient for unassisted tax planning. Please contact a TSGI representative if you require clarification or other assistance regarding this topic.