SR&ED Policy Review Project Update

As part of the Scientific Research and Experimental Development (SR&ED) Policy Review Project, the Canada Revenue Agency (CRA) is currently conducting public consultations and is seeking feedback on a number of policy document revisions. This feedback is intended to help CRA clarify policy intent, reduce the compliance burden, and enhance accessibility to the program.  The various policies under review and their descriptions are as follows:

1. SR&ED Assistance and Contract Payments Policy — states the administrative position of the CRA on assistance and contract payments for SR&ED claims
2. Contract Expenditures for SR&ED Performed on Behalf of a Claimant Policy — provides the position of the CRA regarding contract expenditures for SR&ED performed on behalf of a claimant when administering the SR&ED legislation
3. Policy on the Eligibility of Work for SR&ED Investment Tax Credits — explains the technical aspects involved when determining if work is eligible as SR&ED
4. SR&ED Overhead and Other Expenditures Policy — states the position of the CRA regarding SR&ED overhead and other expenditures that may be claimed under the traditional method when administering the SR&ED legislation
5. Prescribed Proxy Amount (PPA) Policy — states the position of the CRA regarding the PPA when administering the SR&ED legislation
6. Traditional and Proxy Methods Policy — provides the position of the CRA regarding the traditional and proxy methods when administering the SR&ED legislation

The CRA is inviting commentary from stakeholders on any portion of these six draft policy documents by August 4, 2011. The CRA intends to review all comments and revise the draft policy documents accordingly, with all policy documents expected to be finalized by December 31, 2011.

TSI will be submitting comments to the government with respect to these draft policy documents.  Additional details can be found at http://www.cra-arc.gc.ca/txcrdt/sred-rsde/nttvs/menu-eng.html