Test your knowledge of the SR&ED tax credit – 10 questions abour R&D
We already published a similar test and many asked for more. So here is an other one for all of you, experts.
So, you think you are an expert in SR&ED ?
The R&D Tax credit is one of the most complex areas of the Income Tax Act. Do you think you are an expert in R & D credit? Do you need help from anyone? Let’s see how true this is. Test your knowledge with this short 10 question quiz.
- In order to claim the credit, a company must have a full technical and accounting documentation about the claimed years.
- Process improvements cannot qualify for the research credit.
- In order to receive a credit, a company’s research efforts and activities must be incremental, that means increasing year-over-year.
- Quality control activities always qualify as SR&ED.
- In a CRA technical audit, answering the three criterias of advancement, uncertainties and work done is not enough anymore. You need to answer the five eligibility questions.
- Wages and compensation of officers and directors cannot be included within the research credit.
- The SR&ED Investment Tax Credit earned in a tax year can be carried back and applied against tax otherwise payable in any of the 3 previous tax years or can be carried forward 20 years.
- The probability of having an audit can be greatly reduced by improving your project descriptions, the reasonability of costs claimed and the coherence of your claim.
- A claim preparer’s invoices are claimable as SR&ED eligible expenses.
- The same project can be claimed as SR&ED over many years without changing the advancements sought or the uncertainties.
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Answers : 1 :F 2 :F 3 :F 4 :F 5 :T 6 :F 7 :T 8 :T 9 :F 10 :F
6/10 is a strict minimum, you are excellent if you reach 9 or 10 /10
