Media Advisory Release: http://cata.ca/2016/4-2-billion-dollars-clawed/
Aggregate “tax assistance” (i.e., tax credits) delivered by the CRA through the SR&ED program has gone down by $4.2 billion over the six years starting in 2009-2010 through 2014-2015. (For details, see Table 1, attached.)
The $4.2 billion reduction does not include a significant amount of the legislated reduction in the SR&ED incentives announced in the 2012 Budget. This $500 million a year reduction will come into full effect in 2016-2017 tax year and continue onward. (For details, see page 4.)
While the public information on SR&ED is opaque, CATA believes that the SR&ED program has been hit hard by the Canada Revenue Agency (CRA) as we have highlighted over close to a decade. CATA is calling for the creation of a new administrator for the SR&ED program and all tax based incentives, a new Digital Innovation Tax Credit, and a new Innovation Box for the commercialization and export of Canadian innovations.
The CRA’s total control of the development and application of policy and procedures is too inconsistent and unpredictable for any innovation tax incentive.
To support CATA’s call to action, the Alliance tabled an eight page research document, prepared by an expert team led by CATA Sr. VP, Russ Roberts and Research Director , Catherine Bishop. Please send an email request with your contact details to CATA CEO, John Reid (email@example.com) for a pdf copy and related briefing materials.