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Outsourcing Your SR&ED Tax Credit
Am I Under-Claiming?
As experts in SR&ED, Pinchevsky consultants will actively pursue your company’s full potential. There are numerous reasons why an existing claimant should consider using Pinchevsky consultants to manage their entire SR&ED process. The obvious reason simply being – expertise. We are experts in the SR&ED program with a complete understanding of its guidelines, benefits and pitfalls. Below are typical scenarios in which companies may be under-utilizing their full SR&ED tax refund entitlement.
Technical and Financial Detail
Pinchevsky utilizes a proven methodology for identifying eligible activities and their associated costs. Our systematic approach ensures that all relevant expenditures are claimed and that they are wholly defensible in the event of a review or audit. Keeping in mind that each industry sector has unique guidelines and interpretations for eligibility criteria for experimental development – your approach to claim management will likely be missing key elements.
Successfully Claimed in the Past
Companies that have claimed SR&ED with success in the past may mistakenly assume that their project descriptions fully met the SR&ED program criteria. In fact, the technical or financial claim may have contained descriptions that would have been viewed negatively under a full audit or desktop review by the CRA. This may give the wrong impression that the SR&ED process is generic in nature and can be applied repeatedly. Companies also assume that they have maximized their claim value, when it may indicate conservatism and the potential for cash value being lost permanently.
Rejected Claims or Poor Audit Results
A number of companies with valid SR&ED activities are now avoiding claim submissions based on previous rejections by the CRA or following a technical/financial audit. In many of these cases, the underlying technology and experimental development may have been eligible, but the company’s interpretation of the SR&ED program guidelines and limited expertise were the limiting factors. By engaging Pinchevsky to properly scope your R&D activities, your company can substantially reduce the risk involved with self-preparation of a claim which may have a lower profile for claim success.
Low Return on Investment (ROI)
By outsourcing your SR&ED claim to Pinchevsky, your company will be able to free up the resources of your most precious assets – your people. Having your most senior technical and financial managers committing weeks or months of their time in order to research and immediately absorb the SR&ED program guidelines implies a high opportunity cost. As management consultants, Pinchevsky enables clients to focus on their core competencies and to generate more profit or raise investment capital.