As part of the Economic Action Plan 2012, the Federal government has committed to undertake consultations to better understand how and why SR&ED claimants hire external advisors. The consultations are specifically intended to assist the Department of Finance in understanding the following questions:
- why firms hire third-party tax preparers on a contingency-fee basis;
- why these tax preparers charge contingency fees;
- the prevalence of this practice;
- the amounts charged; and
- the impacts of this practice on the effectiveness of the SR&ED tax incentive program.
The deadline for submitting comments to the Department of Finance on these topics is October 1, 2012. All stakeholders in the SR&ED program should speak out now:
Further information can be obtained at the following websites: Announcement of the consultation process and Background information and guidance for submissions
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.