The chemical Industry is an integral component of the Canadian economy where there has been a growing focus towards design and development of technology, equipment, and methodologies of innovative products. During various phases of design and development, the scientists/engineers may coordinate testing and experimental development to seek improved results. It may be common to believe that the SR&ED program is tailored towards large companies with dedicated research facilities, whereas there are several small to medium-size corporations taking benefits of cash refunds from the R&D tax credits. The cash refunds not only finance the short-term growth but also create opportunities for future progression and investments.
Innovative chemical products and novel processes are a result of significant effort that qualifies for SR&ED. Having said this, frequently the developments are less drastic resulting in incremental improvements to existing products and processes. These efforts are commonly left alone during the preparation of SR&ED claims and are therefore unclaimed resulting in significantly reduced claims. At SRJCA, we help chemical companies determine, track, claim and defend all eligible activities to maximize their claims. Several sectors where SR&ED claims are common include:
- Petrochemicals
- Organic and Inorganic Manufacturers
- Pesticides, Fertilizers and Other Agricultural Chemical Products
- Paint and Adhesive Products
- Detergents
- Rubber and Synthetic Rubber
SRJCA specializes in technical and financial expertise imperative to the successful completion of the SR&ED claim. Within the chemical industry, there is always an ever increasing demand for cost cutting and waste reduction measures tailored towards manufacturing and improvement of existing technologies and addressing concerns with current technological limitations. Therefore, prime activities that engineers may be performing could be eligible for SR&ED:
- Development/improvement/automation of existing and new resources
- Streamlining production/manufacturing processes
- Manufacturing/implementation/upgrade/maintenance of components
- Formulation development
SR&ED program recover significant amount of qualified expenditures. Many companies may experience vagueness and difficulty in understanding the CRA requirements and policies surrounding the R&D tax incentives. Therefore, it is quite common for companies to encounter challenges in identifying and claiming the appropriate activities/expenditures, leading to under claiming what they may be entitled to. At SRJCA, our clients are assigned specialized and experienced consultants in the same field as the client’s industry. Our consultants are skilled in identifying unclear, commonly missed, vague, and under claimed activities, which leads to recovering fair entitlement of R&D credits.
The Ontario R&D tax credits are quite lucrative for Oil & Gas companies, as they assist firms to recover up to 71% of qualified expenditures (payroll, capital, contract expenditures, materials etc). The recovery through R&D tax credits ranges from 20% – 80% of qualified expenditures, depending on the province of residence and type of claimable expenditures.
At SRJCA, our objective is to identify all facets of qualified technical activities and corresponding expenditures, leading to a successful SR&ED claim completion. Whether you are a start-up corporation or experienced in filing SR&ED claims, our experienced and professional consultants will minimize the disruption from your daily business operations. We have a track-record of delivering quality, and we have a strong reputation with CRA.