The increasing focus of the Federal election 2008 on the deteriorating economic conditions and competitive position of Canada provides us with the opportunity to bring home the ineffectiveness of current federal support for innovation and commercialization and the need for the next Government to address the fundamentals and get it right.
The SR&ED tax credit program is close to a $ 4 billion commitment to innovation that a very significant portion of its larger claimants find problematic according to the CRA's own client survey. The problem is further illustrated in a CATA release, Industry Survey Says Canada's SR&ED Program Not Working the Way It Should.
How effective it could be and the impact, both positive and negative, of current CRA practices need to be communicated to candidates.
CATA's National Spokesperson, Terry Matthews, in a recent white paper, The Challenge of Survival for Canada's ICT Sector, lays out the issues and the weakness of the current system of support for Business Innovation. If you are speaking with candidates and their supporters, it is important to explore the issues with them.
The CATAAlliance believes that we need a Government willing to move aggressively to a new more fully integrated, less piecemeal system of support for Business Innovation. A system that strongly promotes investments in early stage technologies and that sees that Canadians can capitalize on our creativity and grow our technology businesses into fully mature internationally competitive companies.
You may wish to emphasize:
Some members are suggesting that the CRA's treatment of claims is currently becoming more problematic.
++ Call to Action: Talk with candidates
Explain the real, short- and long-term consequences of inaction.
Obtain their commitment to:
If you have an opportunity or opportunities you would like to discuss with us, please give Russ Roberts, Sr. VP of Tax and Finance for CATA, a call at 613-290-2911 or e-mail him at email@example.com