Changes coming for 2011 T661 SR&ED form

Based on cross-country consultations with various SR&ED stakeholders, the Canada Revenue Agency (CRA) announced in October upcoming changes to the November 2008 version of the T661 form. The changes will take effect in April 2011.

The key change is that the CRA has indefinitely extended the transitional measure that allowed claimants to submit project information in Part 2 of the form for only the 20 largest projects in dollar value. A new table (Part 6) has been added to gather cost information for all the claimed projects. This information is currently requested in Part 2 Section E of the form.

The new form will be mandatory for claims filed after July 31, 2011. In the event a claim is submitted after July 31, 2011 using the old version, the CRA will request the omitted information. If the claimant does not respond to the request within the specified time requested, the expenditures associated with the omitted information (i.e. expenditures associated to projects with a missing cost summary) may be disallowed due to insufficient information.

For further information on how the approaching changes to Form T661 will affect your claim, please contact TSI. Learn more about SR&ED tax credits, and how utilizing a SR&ED consultant to help you file Form T661 can be advantageous to your company.