Monthly Archives

November 2014

Clarification of SR&ED Policy: Companies Receiving a FTCAS Visit May Also Be Audited. (posted November 20, 2014)

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Background
The First-Time Claimant Advisory Service (FTCAS) is an education program introduced by the Canada Revenue Agency (CRA) as a result of commitments made by the Federal Government in the 2013 Budget. The purpose of the FTCAS is to provide a personalized, face-to-face, information session to companies who are new to SR&ED. Early details of the FTCAS were explained in TSGI’s web post of February 27, 2014.

 

Update on FTCAS Procedures
When the FTCAS was first publicized, the CRA indicated that companies that received a FTCAS visit would not be audited for that year. Recently, however, a TSGI client was informed that they will receive a FTCAS visit as well as a detailed SR&ED review (audit) of their claim. In response to TSGI inquiries the CRA has clarified that some SR&ED claims will receive “a detailed review with a FTCAS component”.

 

Key Learning
Prior to the release of this information, companies that received a FTCAS notice had assumed that their SR&ED claim would not be audited (i.e. that they would receive the full amount of their claim without the possibility of a downward adjustment). In light of the information above taxpayers should not make this assumption.

 

Further Information
Specific inquiries regarding this topic may be directed to:
Graham Smith
VP-Business Development
TSGI Chartered Accountants
403-451-3376

 

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.

2014 List of Canada’s Top 100 Corporate R&D Spenders (posted November 11, 2014)

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Research Infosource Inc. has released its annual list of Canada’s Top 100 R&D Spenders. The study compares the R&D expenditures for the highest-spending corporations in Canada for the 2012 and 2013 fiscal years. In 2013, the top 100 Canadian firms invested over $12.5 billion in R&D, up 4.1% from 2012. For the full list and further information please refer to: www.researchinfosource.com/pdf/2014Top100List.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.

CRA Prairie Region to Experiment with Changing Reviewers on Files More Frequently (posted November 10, 2014)

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In the past the CRA has maintained reasonable consistency in assigning Research Technology Advisors (RTA’s) and Financial Reviewers (FR’s) to SR&ED files: if a company had a particular RTA or FR on their file in a given year, the chances were good that the same individual would be assigned in the subsequent year. This informal method benefited both the CRA and taxpayers since it reduced the time required to bring new reviewers up to speed on a file. The benefits were particularly apparent in cases where a large number of complex projects were carried forward from year to year.

TSGI has been informed recently that the CRA Prairie Region will be experimenting with increasing the reassignment rate of RTA’s and FR’s on SR&ED files. The purpose is to achieve a higher degree of segregation of duties among CRA personnel and greater objectivity during detailed reviews (audits). The CRA does not plan to deliberately change reviewers each year but taxpayers should not expect to see the same reviewers assigned for many years in a row.

Key Learning:
Taxpayers should expect a higher turnover in CRA review personnel than they experienced in the past. In response, TSGI recommends that taxpayers should budget additional time and resources towards educating new RTA’s and FR’s on the background of their claims. We also recommend that companies review their recordkeeping policies to ensure that information from previous fiscal years has been retained and is easily accessible for future use.

Specific inquiries regarding this topic may be directed to:
Graham Smith
VP-Business Development
TSGI-Chartered Accountants
403-451-3376

 

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 Contributing as Panelist to the “TakeStock! AB” Event November 5, 2014 (posted November 3, 2014)

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Graham Smith, VP – Business Development for TSGI Chartered Accountants, will be participating on a panel for the “TakeStock! AB” event planned for November 5, 2014. “TakeStock! AB” is an investor forum specifically designed to showcase some of Alberta’s most promising high-growth companies, both public and private. The forum is open to the public.

Further information and registration details are available at www.takestockalberta.com.

 

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.