firsttimeclaimantreview

 

So you’ve received a notification that you will be meeting with the CRA for a First-Time Claimant Advisory Service (FTCAS) review. Should you be worried? How should you prepare?

First things first, there is no need to be worried about receiving a FTCAS notice after your SR&ED claim has been submitted.

What is an FTCAS Review?

Introduced at the beginning of 2014, FTCAS reviews are a complimentary service that the CRA is providing for first-time SR&ED claimants. They are meant to be educational and conversational so that every new claimant has a better understanding of what the CRA looks for in a SR&ED claim. More specifically, the CRA states that a SR&ED reviewer will come to your office and provide advice on: [list list_style=”darkGrayDot”]

  • how to identify potential eligible work in the context of your business;
  • how to identify allowable expenditures;
  • the types of documentation and other evidence that could support a claim; and
  • how to complete and file future SR&ED claims.

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Before we go any further, we should remind you that FTCAS meetings are not to be confused with CRA Reviews. CRA Reviews are much more elaborate as they determine whether to approve or deny the details of your SR&ED claim. There are three different types of reviews: desktop; financial only; and financial and technical. For more info about what to expect during CRA Reviews, check out this blog post.

What Should You Expect?

Based on FTCAS meetings we’ve attended with our clients, here’s what you can expect before, during and after the meeting.

Before the meeting: The CRA will coordinate a time for the SR&ED Reviewer to visit your office and meet with your team and/or SR&ED advisor. Be sure to allocate 4 hours (at most) for the meeting.

During the meeting: The meeting can take anywhere from 2 to 4 hours. Your SR&ED Reviewer may be a recently employed junior employee or could be an advanced SR&ED Reviewer who’ve been with the CRA for over 10 years. Either way, they typically cover four main areas: [list list_style=”darkGrayDot”]

  • Review what the SR&ED program is
  • Review the technical requirements for SR&ED and the extent of eligible work
  • Review the financials for your SR&ED claim
  • Review your SR&ED claim from a technical perspective

[/list] Be sure to answer the Reviewer’s questions as directly as possible; You don’t need to dive into the technology or process in elaborate detail if they don’t ask for that information. If they do need more info, they will be sure to ask.

After the meeting:  After the meeting, your Reviewer will put a report together with written recommendations on what to improve for next claim. After you receive the report, you will receive your official Notice of Assessment (NOA) for your SR&ED claim.

Bonus: click here to download this 20-page SR&ED Guide to learn everything you need to know to prepare a successful claim.

How Should You Prepare?

  1. Review the hypothesis and the technical challenges with your team
  2. Review what was known and what was unknown when your team began the project? This includes tools, methodologies, etc.
  3. Discuss the submitted claim with your SR&ED advisor. (They can attend the meeting as an extra resource)

Hope this blog post has made you feel better about your upcoming FTCAS review. If you have any questions, feel free to give us a call at 1 (800) 290.5672 or email at info@boastcapital.com.


Additional Resources: [list list_style=”darkGrayDot”]

  • Preclaim Project Review (PCPR) Service

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tecterra

TECTERRA is an organization that supports the growth of the geomatics industry in Canada. This includes development in geomatics technology for integrated resource management (IRM) and other geospatial applications.

Continue reading “Everything You Need to Know About TECTERRA Funding Programs”

 
Writing applications for non-dilutive funding? Learn 10 tips for grant writing success. 

Douglas Hagedorn has leveraged a number of innovation grants from Alberta Innovates Tech FuturesTECTERRA and more to fund his technology company Tactalis. Tactalis creates tablet computers with tactile feedback that help people who are blind and visually impaired explore, create and share interactive digital media.
A few weeks ago, Douglas shared his grant writing experience with the local tech community so they too could learn how to apply for non-dilutive funding.

Before we jump into grant writing, we should quickly explain the different between grants and tax credits. Tax credits help companies recover cost that’s already been spent on an R&D project. Grants take more of a proactive approach. While not necessarily ‘free money,’ grants can range anywhere from $5K to $150K or more and are designed to achieve a specific task. (Take a look at our Innovation Funding overview to see our program comparison)

We compiled the top 10 tips that Douglas shared during his open and honest discussion about grant writing:

1. Be concise and consistent

Only say what you need to say to answer the question. Try to say as much as you can in as few words as possible.

Use consistent terminology to describe your technology and avoid introducing additional terms or synonyms throughout your application.  The more concise your application, the easier it is for the reader to understand and evaluate.

2. Be calendar sensitive

Many programs have an ongoing application process. Be aware of slower-times such as Stampede and Christmas. Funders are people too.

If the program has a deadline, make a note in your calendar. If you have any questions, pick up the phone and give them a call.

3. Collaborate with your community

If you’ve worked with students or local service organizations to get the level of expertise you need, include it. Your application will be stronger if you demonstrate that you’re willing to work with other people and have been successful at doing so.

4. Explain valuable credentials

Don’t just list your team member’s name and their educational credentials (ie PhD or MBA.) The letters behind someone’s name don’t really count if you don’t explain what value they add to your company. You want to show that their speciality is worth the high cost or salary the company is expensing.

5. Don’t just copy and paste

Copying and pasting is an easy habit if you are writing multiple applications. However, the more you work at it, the better you’ll be at writing about your company. Every application is different and will require customized answers.

FREE DOWNLOAD: Click here to learn about 20+ Grant Programs in this Ultimate Guide to Innovation Funding.

6. Connect with past recipients

Many grants and funding programs post their past recipients on their websites. Go out of your way to connect with them to learn about their project, what funding they received and how to position your application.

7. Circulate your application

It’s way better to have someone else catch your grammatical errors and typos than the funder. Get a fresh set of eyes, possibly someone who doesn’t already have an intimate understanding of your company, to review your application.

8. Leave some cash on the table

You’re more likely to get funded if you can show that you understand the realistic costs needed to achieve your desired outcome.

For example, instead of simply requesting you need $100K to hire a software developer, ask for $88K and explain that you know that this is an average software developer’s salary according to the Alberta Wage Survey portal. Sometimes it’s worth leaving cash on the table to show that you know what you’re talking about.

9. Understand the cost

There is ‘no such thing as free money.’ Sometimes, your company will have to contribute a portion of the total project cost to secure the funding.  This can be unexpected and most companies don’t budget for the additional GST or interest that they will need to pay as well.

Some programs are also loans that are only repayable if you are successful. Read through the funding program details carefully and plan accordingly.

10. Be cautious

Grants may stimulate a company in the short term, but should not be used as a crutch for long-term growth. Keep in mind that short-term employees, interns or contractors may not become long-term members of the team.

You also need to be cognizant when using grants to hire an employee, intern or contractor. After spending time getting them up to speed, there is no guarantee that they will continue with your company once their funding term is up. This can be a surprise for a few and is something to pay attention to when selecting the person for the grant.

In conclusion

Grant writing should not be confused with pitching. With grant writing, it’s more about showing that you have the experience, skills and team to accomplish their objective. Your job, ultimately, is to help funders justify their decision to fund you. Focus on the outcomes that your company can deliver that will help them meet their objectives too.

And on one final note, a thank you goes a long way. Make sure to let your funders know how much you appreciate their support!

The government of Canada provides tax credits for digital media projects such as game development, educational software, animated simulators and more. Digital media tax credits are offered for qualifying companies permanently located in British Columbia, Manitoba, Ontario, Quebec, Nova Scotia, and Prince Edward Island as well. Continue reading “What are Interactive Digital Media Tax Credits?”

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