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

By November 20, 2014 No Comments

 

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.