Monthly Archives

November 2012

Video: TSGI Answers Panel Questions at the House of Commons Standing Committee on Finance (posted: Nov 9, 2012)

By | Uncategorized

Our President, Ken Cudmore, CA, answers questions posed by the House of Commons Standing Committee on Finance regarding the changes proposed to the SR&ED program in Bill C-45. The proposed changes will severely reduce SR&ED benefits by:
– Reducing the general ITC rate from 20% to 15%
– Removing capital from the eligible expenditure base
– Gradually eroding the proxy overhead rate from 65% to 55%
– Reducing the eligibility of arm’s length and third party contracts (e.g. universities) to 80%

The negative impact of Bill C-45 on Western Canadian companies, particularly large claimants in the Energy Sector, will be dramatic. Our simulations and third party anecdotal reports lead us to believe that corporations will experience a 30%-60% drop in SR&ED investment tax credits.

Ken’s participation as an expert witness to the Committee provides a unique opportunity for Western Canadian firms to have their concerns heard directly by the country’s financial legislators.
 
 
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.

Video: TSGI Presents to the House of Commons Standing Committee on Finance (posted: Nov 8, 2012)

By | Uncategorized

 

Our President, Ken Cudmore, CA, addresses the House of Commons Standing Committee on Finance regarding the changes proposed to the SR&ED program in Bill C-45. The proposed changes will severely reduce SR&ED benefits by:
– Reducing the general ITC rate from 20% to 15%
– Removing capital from the eligible expenditure base
– Gradually eroding the proxy overhead rate from 65% to 55%
– Reducing the eligibility of arm’s length and third party contracts (e.g. universities) to 80%

The negative impact of Bill C-45 on Western Canadian companies, particularly large claimants in the Energy Sector, will be dramatic. Our simulations and third party anecdotal reports lead us to believe that corporations will experience a 30%-60% drop in SR&ED investment tax credits.

Ken’s participation as an expert witness to the Committee provides a unique opportunity for Western Canadian firms to have their concerns heard directly by the country’s financial legislators.

 
 
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.

TSGI to Appear on Expert SR&ED Panel for House of Commons (posted: Nov 5, 2012)

By | Uncategorized

Our President, Ken Cudmore, CA, will address the House of Commons Standing Committee on Finance regarding the changes proposed to the SR&ED program in Bill C-45. The proposed changes will severely reduce SR&ED benefits by:

  • Reducing the general ITC rate from 20% to 15%
  • Removing capital from the eligible expenditure base
  • Gradually eroding the proxy overhead rate from 65% to 55%
  • Reducing the eligibility of arm’s length and third party contracts (e.g. universities) to 80%

The negative impact of Bill C-45 on Western Canadian companies, particularly large claimants in the Energy Sector, will be dramatic. Our simulations and third party anecdotal reports lead us to believe that corporations will experience a 30%-60% drop in SR&ED investment tax credits.
Ken’s participation as an expert witness to the Committee provides a unique opportunity for Western Canadian firms to have their concerns heard directly by the country’s financial legislators.
 
 
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 Decreases to SR&ED Benefits for Contracting Research to Post-Secondary Institutions (posted: Nov. 4, 2012)

By | Uncategorized

Further to the proposed changes to SR&ED announced in the 2012 Federal Budget, our interpretation
of Bill C-45 reveals that taxpayers will now be eligible to claim only 80% of their payments to approved
universities, colleges, research institutes, or other similar institutions for conducting research and
development on their behalf. This change was not highlighted at the time of the budget announcement,
and would seem to be counter to the government’s emphasis on increasing collaboration between
industry and academia.

If you would like more detail on the potential impact on your SR&ED claim or on our interpretation of
the legislative changes, please contact your TSGI team or info@tsgi.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.