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

By November 5, 2012 No Comments

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.