Saskatchewan Heavy Construction Association: Questions Regarding SR&ED?

We recently presented at the Saskatchewan Heavy Construction Association‘s?Annual Conference in Saskatoon and had a blast! While we did our best to answer all of your SR&ED-related questions, there were a few questions that we’d like to take the time to address below:

1. What is the SR&ED claiming process? How time consuming is the process and is it really worth my time?

At Boast Capital, we use a 7-step methodology to prepare SR&ED claims. Here is an outline of how we would spend the needed 10-12 hours to prepare a company’s claim:

 

1. Kick-off with a technical-based meeting (1 hour) – the technical leads of projects and yourself meet with our business development manager and one of our technology advisors.

2. Coordinate one-on-one technical meetings (1 hour per person) – we will meet in person or over the phone with all individuals involved in the technical side of identified projects.

3.?Provide technical documents (1 – 2 hours of your team’s time) Note: this depends on your level of record keeping internally.

4. Provide financial documents (1 – 2 hours of your team’s time) Note: this depends on your level of record keeping internally.

5. Approve drafted SR&ED report ?(1-2 hours of your time).

6.?Integrate SR&ED tax schedule by your/the company’s accountant.

7.?Review final SR&ED report and tax return by Boast Capital before submission.

 

Throughout this process, our team will handle the 40 – 60 hours of claim preparation internally. We focus on the technical side of the claim first using our in-house engineers. From there we build out the financial side of the claim based on the qualifying technical work we identified using in-house staff.

2. What are some industry examples of SR&ED eligible projects?

As the industry moves forward with EPS (End Product Specification) in regards to road building it will free companies to come up with better ways of reaching an end goal. ?This could include reducing cost, use of new aggregate sources, new asphalt composition, or new application techniques to name a few. ?To achieve all of these goals there will need to be experimentation and innovation. ?If your company is working towards improving or developing new ways to reach EPS then SR&ED could apply to you.

We will be covering additional industry examples in the next publication of the Think Big Magazine being released quarter 1 of 2014.