- About Our Global Tax Services
- Business Tax Consulting
- Compliance and Reporting
- International Tax
- Global Trade
- Indirect Taxes
- People Advisory Services
- Private Client Services
- SR&ED and Business Tax Incentives
- Tax Accounting and Risk Advisory
- Tax Performance Advisory
- Tax Policy and Controversy
- Transfer Pricing and Operating Model Effectiveness
- Transaction Tax
Frequently asked questions
How does the contingency fee work and when do I pay?
EY charges a percentage of the final refund you receive from Canada Revenue Agency (CRA). The reason for this is twofold. Firstly, our clients do not (necessarily) have the funds to pay us upfront for a new and uncertain service and prefer to pay us out of the refund cheques they receive from CRA. Secondly, the contingency fee gives EY a stronger incentive to maximize your SR&ED claims. We monitor your claim throughout the CRA process until you receive your refund. We are with you every step of the way!
What is the refund rate for our company?
This depends on your corporate ownership structure. Federally, Canadian-controlled private corporations (CCPCs) receive the enhanced input tax credit refund rate of 35%. Foreign-owned, publicly traded sole proprietorships, and partnerships receive a 20% tax credit. There are also substantial provincial refunds that we will claim for you depending on your location. With offices across Canada, we are available to serve you from coast to coast.
…but I don’t do R&D?!
SR&ED is different than what you may typically think of as R&D. The federal SR&ED program refunds work done, including prototyping, testing, and developing technologically advanced products or processes.
…but we don’t pay taxes yet?!
That’s OK. Your company is still eligible. Even if you are in a loss position, CCPCs are eligible to receive a refund on their SR&ED expenses.
I already receive government funding. Can I still claim?
Yes. We are able to claim for the excess amount of costs, above and beyond what you receive. For example, if you spend $100 on SR&ED and you receive $15 from another program, we would be able to claim for the remaining $85 of costs.
When is my SR&ED claim due?
SR&ED claims are due to the CRA 18 months after your fiscal year end. For example, if you have a December 2011 year end, your claim will be due in June 2013. This is a firm deadline and all claims must contain the specified CRA documents to be considered complete. If you fail to submit the proper documentation by the deadline, your claim will be disallowed and no refund will be given.
| Susan Bishop |
SR&ED and Business Tax Incentives
416 943 3444
Contact a member of our team.
- Navigating the SR&ED claims process
How to get the most out of R&D tax incentives.
- Do you qualify?
Learn more about SR&ED tax credit eligibility and project categories.
- Frequently asked questions about SR&ED claims
Your questions answered.
- Why use EY for your SR&ED refund?
Here are just a few reasons to choose our team.
Globalization of the pharmaceutical industry and increased outsourcing have drastically changed the R&D landscape. Our report explores the impact on R&D tax incentives.