In this video, Russ Roberts, CATA’s Sr. VP, Tax, Finance & Advocacy, talks about what has happened to SR&ED tax credits in the last decade and some of the causes of this dramatic reduction of innovation support in Canada. View briefing note: http://tinyurl.com/yc4o5zck
Between 2009 and 2015 the aggregate tax credits delivered by the CRA (Canada Revenue Agency) has gone down by 5.3 billion dollars or nearly four and a half times the value of the $1.2 billion strategic innovation fund announced by the federal Liberals, and the Department of Finance now confirm a 15 percent downward revision in SR&ED forecast expenditure.
CATAAlliance has argued that tax credits can be significantly better designed to support innovation, not just SR&ED, as part of the community’s competitive innovation nation advocacy platform. Unfortunately, currently, the review process is – at best – opaque which is unacceptable.
In its 2017 budget, the federal government announced it would be reviewing its SR&ED incentive program, however, no actions have been taken.
Related Call to Action: Seeking Input for Pre Federal Election Recommendations to All Parties (Finance & CRA focus)
The Canadian Advanced Technology Alliance (CATAAlliance), Canada’s One Voice for Innovation Lobby Group, crowdsources ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. Supported by evidence-based research, CATAAlliance then mobilizes the community behind public policy recommendations designed to boost Canada’s innovation and competitiveness success.