SR&ED Alert from desk of CATA Sr. VP, Russ Roberts: Identification of consultants and advisors on claims; and Increased focus of the Canada Revenue Agency (CRA) on penalties for inaccurate or unsupportable SR&ED submissions
January 13, 2014

In the last federal Budget, the Government announced that it has decided to require that companies filing SR&ED claims on or after January 1, 2014, and the day on which the enacting legislation receives royal assent identify their consultants and advisors; and provide details of billing arrangements in order to avoid new penalties.  The CRA's release on this can be viewed at: http://www.cra-arc.gc.ca/txcrdt/sred-rsde/whtsnw/msg-t661-clm-prprr-eng.html . 

As well, the community is being warned by the CRA that penalties will be considered where prescribed information is incorrect and/or cannot be substantiated and claims supported.  

The implications of the second point are not clear.  But, certainly, one of the underlying issues for the CRA is documentation and support of what is being claimed.  As you know, this issue has been a challenge for all of us this year; and you may wish to consider the implications of the CRA's increased focus and the need for documented due diligence. 

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