January 2, 2017

Liberals Fail to Ignite Budget Promise for SR&ED Tax Incentive Review, CATAAlliance Responds with a Kickstart Discussion Paper


Ottawa, ON
— CATAAlliance, Canada’s One Voice for Innovation lobby group, tabled today a two page briefing note to kickstart the federal government’s unfulfilled budget promise to review the SR&ED program, to ensure its continued effectiveness and efficiency.

It has been nine months since the tabling of the federal budget and on page 77 the government spoke to a new platform, “Innovation Canada,” that will be led by Innovation, Science and Economic Development Canada, in order to “coordinate and simplify the support available to Canada’s innovators.” Since the budget was tabled, the government has done nothing to begin the crucial review of SR&ED.

Innovation Canada Mandate

“Initiate a whole-of-government review of business innovation programs. To ensure that its programs are simple and effective and best meet the needs of Canada’s innovators, the Government will review existing programs with the help of external experts. The review will encompass all relevant federal organizations… In parallel, the Government will also review the Scientific Research and Experimental Development tax incentive program to ensure its continued effectiveness and efficiency.”

John Reid CEO of CATA argues that  “Times up. Stakeholders are calling for the federal government to ignite consultations to help fulfill the stated Innovation Canada mandate. Finance has continually failed to address the complex nature of the SR&ED legislation and its cost to Canada, while in recent years touting the need for simplification per the Jenkins’ expert panel review. We are kick starting this discussion today.”

According to Russ Roberts, Senior VP, Advocacy, Tax & Finance, CATAAlliance, a 30 year public policy veteran Revenue Canada’s Senior Science Advisory for the program at it’s inception, “Our research has shown that SR&ED is guided by outdated frameworks and bureaucratic rules, rather than having a dynamic context in keeping with today’s fast paced marketplace and business innovation models. The program is complex; the legislation conflicted and burdensome; and the CRA has demonstrated great difficulty managing it in the spirit of an incentive program, given their compliance orientation.” 

Read CATA’s Two Page Kickstart to Consultations:
http://cata.ca/2017/sred-consulation-kickstart-cata/

Please send your guidance on the SR&ED tax incentive program and how to provide better tax based support for our innovative businesses to CATA CEO, John Reid at jreid@cata.ca 

Please also share your ideas on your social media to build community engagement.  Our Tax Advocacy team led by Russ Roberts  and Catherine Bishop are managing a cross Canada outreach with targeted meetings with decision makers.

About CATAAlliance

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https://www.linkedin.com/groups/37239/

The Canadian Advanced Technology Alliance (CATAAlliance) is Canada’s One Voice for Innovation Lobby Group, and is crowdsourcing ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. (No Tech Firm Left Behind)

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Contact: CATAAlliance CEO, John Reid at email jreid@cata.ca, tel: 613-699-8209, website: www.cata.ca, tags: Innovation. Leadership, Entrepreneurship, Advocacy