Insiders of Canada’s technology community reviewed the budget as taking steps in the right direction to help firms scale up operations, but were critical that the Liberal government didn’t go far enough in determining a clear data strategy…
Despite some of the improvements that were made, there were some who saw it as simply an extension of what had been already addressed in previous budgets, with nothing new being brought to the table.
“I think the agenda that’s been set was set in previous budgets. There are micro-changes being made and improvements being made along the way,” said Russ Roberts, senior vice-president of advocacy, tax, and finance for the Canadian Advanced Technology Alliance. “Frankly, I don’t think it addresses the big questions that the community has been asking about that agenda…”
While the government is eliminating the taxable income threshold, the taxable capital threshold for SR&ED is still in place, she points out. Once firms have more than $50 million in capital, they can no longer claim the 35 per cent special rate.
“It’s definitely going to have an impact,” Oner says. “R&D intensive companies will see the most benefit, so industries like pharmaceuticals and software development.”
Despite the freedom this will allow businesses in regards to research and development, Russ Roberts of CATA still believes it falls short of accomplishing its goal.
“The community is putting a lot of money into research, which is great, but what are we going to do to commercialize it?”
Read full article (IT World Canada): https://www.itworldcanada.com/article/federal-budget-tech-community-welcomes-global-skills-commitment-sred-expansion/416151
The Canadian Advanced Technology Alliance (CATAAlliance), Canada’s One Voice for Innovation Lobby Group and ‘political party’ for Canada’s tech industry, 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.