The Oil and Gas industry is very important to the Canadian economy where there has been a growing focus towards design and development of technology, equipment, and methodologies of extraction, mining, quarrying and more . During various phases of design and development, the engineers may coordinate testing and experimental development to seek improved results. It may be a 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
Essentially, any incremental improvements and potentially routine tasks could be eligible for R&D Tax Credits. Oil and Gas companies that may miss out on these activities could potentially lose significant recoveries under the SR&ED program. Several sectors where SR&ED claims are common include:
- Petrochemicals
- Drilling Equipment
- Pipeline Services,
- Oil & Sands Equipment
- Field Processing
- Transportation
- Engineering
SRJCA specializes in technical and financial expertise imperative to the successful completion of the SR&ED claim. Within the Oil & Gas sector, 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 that could be eligible for SR&ED are as follows:
- Development/improvement/automation of existing and new resources
- Streamlining production/manufacturing processes
- Manufacturing/implementation/upgrade/maintenance of components
- Heavy oil sand processes
- Upgrading and enhanced oil recovery processes
- Investment in advancement/upgrading systems
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. As a result of this, it is quite common for companies to face challenges in identifying and claiming the appropriate activities and 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 of operation as the client’s corresponding 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 upon 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 results using our approach and we have been able to establish a strong reputation with CRA.