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Lucrative SST refund for large goods shippers in BC

If you represent a large farm operation, manufacturer, distributor or wholesaler and paid BC Social Service Tax (SST) on shipping costs from August 2009 to June 30, 2010 you may be eligible for a refund.

This is a specific issue based opportunity for a refund of SST for large farmers, manufacturers, distributors or wholesalers in BC.

This opportunity is extremely time sensitive as the refund eligibility period (currently August 2009 to June 30, 2010) is shrinking by the day.

Since this is a specific issue based opportunity, the preparation of the claim is simple and can be done offsite.

Under certain circumstances this opportunity can also provide future PST savings as well.

With Enhanced Capital Recovery, you only pay for our services if you receive a refund.

Please contact us to set up a phone meeting so we can provide you more details about this opportunity.

info@enhancedcapitalrecovery.com

Tel: 1-800-470-0235 ext 231

Fax: 1-800-965-3209

R&D Incentives for Start-Ups

Many companies, especially new start-ups, try to overcome technical challenges and obstacles fundable by SR&ED and other R&D incentives, but do not get any funding because of how they have articulated their challenge or worse yet, do not receive R&D incentives because of how the company is structured.

Enhanced Capital Recovery provides a no-obligation SR&ED review where companies can share their technical challenges and how they are trying to overcome them and receive advice on how to capitalize through adequate follow through.

While many companies pass the technical eligibility test for R&D incentives such as SRED, they often fall short in another aspects including how shareholders or owners of these companies compensate themselves or draw their funds from the company.

Through proper planning and structuring of your company, Enhanced Capital Recovery can help ensure you do not miss out on funding your company may be entitled to that can help you offset the costs of innovation so you can continue investing in more research and development and grow your company’s bottom line.

If you are a Canadian company or a business that has been trying to overcome technical challenges in your day to day operation, please call us at 1-800-470-0235, visit us online at www.enhancedcapitalrecovery.com or email us at info@enhancedcapitalrecovery.com for a no obligation consultation.

At no upfront cost or obligation we will review your technical challenges, help add value to ensure your company is structured properly and fully aware of all opportunities to maximize on R&D incentives and SR&ED recoveries.

Contact Enhanced Capital Recovery today for a no-risk consultation. We’re your SR&ED consulting experts in Vancouver, Edmonton and Toronto.

Research and Development Funding FAQ

You have probably heard of the Scientific Research & Experimental Development (SR&ED) program, but you may have some questions. What is research and development, exactly? What kinds of activities apply? Why is the government funding these projects?

There is a good chance that a task your employees have performed in the recent past, or carry out on a daily basis, qualifies for SR&ED funding. Here are the answers to common questions about the program, and how your business may be eligible to recover expenses today.

What is research and development?

The Canadian Revenue Agency (CRA) rewards businesses of all sizes and in all industries for conducting research and experiments with the goal of advancing technology. From the outset, the project must be undertaken to overcome a technical obstacle with an element of uncertainty in the outcome.

Whether or not your experiments were successful does not matter—the CRA bases its funding on the attempt alone—so long as they were conducted systematically and there was an element of uncertainty in the outcome.

The CRA will expect your business to have a technical uncertainty in mind before conducting the R&D, and you must be able to prove this “technical content.” For this reason it is very important to be aware of what needs to be documented and seek an experienced SR&ED consultant.

What types of projects qualify?

For many businesses, eligible projects are often a form of experimental development. An owner of a sporting goods shop who improved a point-of-sale system to track online sales, or a commercial fishery that developed a better canning process could both qualify.

Eligible scientific research doesn’t need to involve microscopes and lab coats (though that certainly counts). Researching your farm’s water use to develop a more efficient irrigation process, for example, could be a qualifying activity.

Why is the CRA rewarding R&D?

The federal government has long since been rewarding research and development by Canadian companies. Beginning as a traditional tax credit program in the 1940s, interest in technological advancement on Parliament Hill has since adapted into the SR&ED program.

The Canadian government strongly feels that domestic research and development keeps Canada competitive in the global marketplace. The SR&ED program is therefore an investment: funding Canadian-owned companies to advance technology for a strong economy.

I think my company is eligible—what do I do now?

The SR&ED application process is becoming stricter each year and since SR&ED is about technical innovation and new knowledge, it is advantageous to engage a specialist who can understand your technical obstacles as well as what CRA requires for a successful SR&ED claim.

If you think your business could qualify for SR&ED funding, contact Enhanced Capital Recovery today for a free consultation to confirm you qualify and perhaps to see how much of your expenses can be recovered. Call Enhanced Capital Recovery at 1-800-470-0235, visit us online at www.enhancedcapitalrecovery.com or email us at info@enhancedcapitalrecovery.com.

At ECR, a SRED firm in Edmonton, Vancouver and Toronto, you will work with an industry-expert consultant who knows how to maximize your claim in your specific field. We look forward to hearing from you!

Looking to Expand Your R&D?

The Scientific Research and Experimental Development (SRED) tax credit could be your solution!

Through the SR&ED program, companies are able to recover up to 68 percent of eligible costs and activities. Expenses like employees’ and shareholders’ salaries, contractor fees, and materials used in the qualifying project may be covered by the program.

Think your company is too small for SR&ED?

You do not need to operate a Fortune-500 business in order to qualify for SR&ED funding. In fact, the program is intended to reward small and medium-sized companies across Canada, especially newly-established start-ups.

Three quarters of applications received by the CRA are from smaller businesses. However, the SR&ED program also accepts claims from larger corporations, unlike other federal tax incentives that only support start-ups.

Isn’t the funding only available to companies conducting innovative research and groundbreaking experiments?

Don’t sell yourself—and your business—short! There is a good chance that an activity you conduct on a daily basis is enough to qualify for SR&ED tax credits.

This is often an experimental project, like developing a new product, improving an old one, or increasing the efficiency of a routine process. Research projects could include determining the impact on an everyday procedure or investigating a solution to a technical obstacle.

How can a SRED Consultant help?

As SRED consultants we are experts in helping you identify and successfully claim the SRED tax credit. Best yet, we do all the work with no risk to you. We only charge a fee based on the SRED return we get for you!

Watch our videos:

https://www.youtube.com/user/EnhancedCapital

or visit our website for more information:

www.enhancedcapitalrecovery.com

Or contact us today for a no risk, no obligation 15 minute discovery consultation to see if your company qualifies for SR&ED. Enhanced Capital Recovery is your complete SR&ED solution in Edmonton, Vancouver and Toronto.

Tel: 1-800-470-0235

info@enhancedcapitalrecovery.com

R&D Funding for the Oil and Gas Industry

Canada’s oil and gas industry is a backbone of the country’s economy and the federal government is rewarding these companies with R&D tax incentive, such as SR&ED tax credits. However, businesses often shy away from applying due to misconceptions about the program.

The Canada Revenue Agency (CRA) excludes any oil and gas prospecting, exploring, drilling, and production operations from funding—but there are plenty of other related activities that could allow your business to recover up to 65% of eligible expenses.

To qualify, your company needs to have surmounted a technical uncertainty using scientific research or experimental development. Here are examples of what activities can and cannot qualify for funding and what you can do to capitalize on SR&ED tax credits.

What types of work are eligible?

While direct oil and gas operations are excluded from the SR&ED program, there are many opportunities to apply for funding. Creating or improving technology to advance a process, such as new software for more efficient automated engineering, is a common project in the industry.

The manufacturing sector also offers opportunities. Experimenting to improve hydraulic systems, A-frames, rubber components, or equipment that reduces environmental harm may be accepted.

Keep in mind other areas that are not directly related to the oil and gas industry, but could be an eligible everyday activity. For example, perhaps you improved your transportation or storage equipment to overcome a technical setback.

What projects do not qualify?

As mentioned, the CRA states that “prospecting, exploring or drilling for, or producing, minerals, petroleum or natural gas” do not qualify for SR&ED funding. Other activities like routine testing or data collection, market research, or advertising are also excluded.

How should I prepare for a claim?

Before beginning any projects that may qualify for SR&ED funding, it is important to document the entire process. The CRA will request all details about the research or development your company conducted, whether the projects were deemed successful or not.

The review team will also require information about which employees worked on the project, what tasks they performed, and what amount of their time spent working was allotted to the project.

How can Enhanced Capital Recovery help?

Hiring a professional SR&ED consulting firm like Enhanced Capital Recovery is especially worthwhile for oil and gas claims. These businesses often partner with outside companies and foreign joint ventures, making the SR&ED application a complicated process.

We are not only specialized in SR&ED procedures, but we are oil and gas experts as well. You will work with a highly skilled consultant who is familiar with the industry language the CRA expects.

To schedule a no-obligation discovery assessment, contact Enhanced Capital Recovery today and learn how much of your expenses could be recovered through the SR&ED program.

Tax Credits for Farmers & Food Industry

The food, beverage, and agriculture industries offer many opportunities to capitalize on SR&ED funding. In making your business competitive in Canada, you’ve probably experimented with your normal routines or tried developing new products.

Once satisfying the basic requirements, the scientific development does not need to be groundbreaking to benefit from funding—it can be as simple as adding a gluten-free version of a popular treat to you bakery’s menu or finding a use for everyday waste materials.

Here are some examples of everyday farming and food processing projects that could be eligible for SR&ED funding:

Farming and Agriculture

As populations rise and conventional farming methods become dated, the federal government is rewarding farmers who advance agriculture techniques. Modifications that increase crop yield or altering equipment to increase production and safety are common projects.

Attempts to make your farm more environmentally-friendly also benefit from funding, such as developing alternatives to harmful chemicals, using equipment that requires less energy, or improving irrigation techniques and routines for reduced water use.

Finding a practical use for traditional waste (manure, groundwater, or leftover livestock feed) can receive funding, such as altering equipment to be powered by unused grains or corn.

Processing and Manufacturing

Food processing companies also reap the benefits of SR&ED funding. For example, developing an existing product to meet consumer needs of gluten-free, sugarless, and nut-free foods is a simple and common procedure that many food processors and restaurants already do.

Experimenting with ingredients to extend a product’s shelf-life or to improve flavour and nutrition also qualify. Conducting research on the impact of a process, such as your storage or shipping techniques are included in the program as well.

Vineyards and Breweries

In trying to create the next must-have wine, there’s a good chance you altered your usual process. Experimenting with soil types, grape selection, and water control are everyday activities that qualify for tax credits.

Funding is also available for breweries. Examples of eligible projects include changing the bottling process for better efficiency, experimenting with hops to improve flavour, or developing new packaging to reduce materials.

Plants and Greenhouses

Everyday greenhouse operations could also lead to your business receiving SR&ED funding. Modifying seed combinations, experimenting with temperatures, and determining how to better grow plants that are non-native to your area are examples that may qualify.

Various types of research may also be eligible, such as examining how different temperatures, lighting, and irrigation routines impact growth. Be sure to record all experiments and research details, no matter of the success.

Many businesses across Canada are satisfying the requirements without realizing they may be eligible to recover up to 65% of their eligible expenses.

To find out how your routine food and agriculture activities could result funding, contact Enhanced Capital Recovery today for a no-risk consultation. We’re your SR&ED consulting experts in Vancouver, Edmonton and Toronto.

What Your Accountant Doesn’t Know About SR&ED

If your accountant is handling your SR&ED claim, you may be leaving opportunities on the table to significantly improve your claim. The fact is, filing an SR&ED claim is more of a technical exercise than an accounting exercise. In-house accountants may be qualified to handle the accounting aspects of the claim, but the key to maximizing your claim and having it approved, lies in proper tracking and definition of projects, a thorough understanding of what qualifies for SR&ED and technical documentation.

Accountants are simply not Engineers and may have little understanding of the technical aspect of SR&ED. In short, accountants lack the required scientific and industry-specific knowledge to identify and document a SR&ED claim. Specialized consultants like Enhanced Capital Recovery are both Engineers and Finance professionals, trained specifically to handle SR&ED claims. Here is how professional SR&ED consultants can take your SR&ED claim to the next level.

Maximizing your claim

Through the SR&ED program, Canadian businesses can recover up to 65% of eligible expenses with various tax incentives—SR&ED consultants understand how all of the applicable tax incentives work and can make sure they are applied. Whether you own a dairy farm in rural Alberta or software development company in Montreal, your Enhanced Capital Recovery SR&ED consultant will have industry specific technical expertise to help maximize your claim.

The SR&ED landscape is constantly shifting with new rules and new opportunities being introduced to enhance your claim. By staying up to date with SR&ED trends and news, SR&ED consultants are able to capitalize on these new opportunities.

SR&ED Consultants are industry experts

When you work with a SR&ED consultant, you are not only working with tax incentive consultants. SR&ED consultants have Engineering and Business backgrounds with matching expertise in everything from pharmaceuticals and chemicals to manufacturing and information technology.

Documentation is necessary when submitting a claim and the CRA expects industry-specific terminology and knowledge during the process. SR&ED consultants are able to document your claim to meet the CRA’s strict guidelines and standards.

Valuable industry partners

Experienced SR&ED consulting firms have developed networks and partnerships in industry. For example, ECR has become one of Canada’s most trusted SR&ED consulting firms by forming valuable partnerships in industry. SR&ED consultants also stay on top of news and policy changes, allowing for up-to-date information and a smoother, quicker claims process.

If your claim was previously rejected, a SR&ED consulting professional will help you determine the reasons it failed. Enhanced Capital Recovery has worked with several clients in this situation and were able to adjust their claim and get it approved.

Post-claim support

SR&ED consultants provide ongoing support. At Enhanced Capital Recovery, our client relationship doesn’t end when your tax credit is granted. Should the CRA review your claim, we will continue to support you through the entire process. We are also happy to work with you on future projects to determine SR&ED eligibility.

Risk-free consultations

Hiring a SR&ED consultant should not be a risk for your company. In fact an SR&ED consultant can take the risk of loss of time and loss of resources out of your SR&ED claim process. Working with ECR is risk-free—we don’t get paid until you receive a tax credit from your successful claim. There are no upfront or hidden fees and our services are based on a percentage of your credit.

Getting started with the right SR&ED consultants

All consultants at ECR are trained in SR&ED procedures and are skilled industry experts, but beware of other firms that contract work to technical writers or that may assign your claim to a junior consultant. We value all of our clients equally, no matter the services you require or the size of your business.

Please contact us about how ECR can assist your business today—let our SR&ED consulting professionals help you maximize your SR&ED claim while your accountant does the job that they do best.

SR&ED Claim Review? What to Expect from the CRA

What is the SR&ED Claim Review Process?

The Scientific Research and Experimental Development (SR&ED) claim review is a process involving many steps and individuals. But what exactly happens at the Canada Revenue Agency (CRA) once your claim is filed? Here is what you can expect during the review process.

Determining if you qualify

The CRA’s first step is determining whether your company and projects meet the basic criteria. Are you a Canadian Controlled Private Corporations (CCPC)? Is your T661 form completed correctly? Has your company attempted to overcome a technological uncertainty? Have you used research and development (R&D) to advance technology?

This is also the stage where a CRA financial reviewer inspects whether the expenses you outline in your claim are eligible costs for SR&ED program funding.

Technical aspect review

Once the basic requirements have been determined, the CRA science advisor—sometimes with the assistance of an outside industry expert—further inspects the technical aspects of your claim.

This involves the review team analysing whether your project employed R&D to solve a technological or scientific problem. It will also investigate how you measured the success of your project, and to ensure the knowledge gained was innovative to your company.

Request for information

In some cases, the CRA review team will request additional information. This can provide further evidence to support your claim or to answer questions for clarification. Should this be necessary, you will be contacted by a science advisor with a specific request.

An outside consultant may also be contracted during this stage to clarify information for the review team. The CRA is familiar with all consultants and confidentiality is ensured in every claim.

Site visit or interview

The CRA may request an interview or site visit when verbal clarification or additional documentation is insufficient. During an interview, the science advisor, possibly accompanied by a consultant, will identify the areas of your claim that are unclear.

The interview may also be to determine whether the projects were sufficiently documented and that costs were spent as claimed. For this reason it is essential to document and organize evidence of your claim.

Enhanced Capital Recovery can ease the process

Allowing a tax consultant like Enhanced Capital Recovery to take care of your SR&ED claim can ease the review process and even reduce the waiting period.

An accurate claim, complete with industry-specific information, will leave the CRA with less reason to request information or site visits for clarification. Our consultants are knowledgeable with the entire review process and could identify additional qualifying projects.

To find out how we can provide efficient assistance in submitting your claim, contact ECR today for a free consultation by phone at 1-800-470-0235 or email us at info@enhancedcapitalrecovery.com. We look forward to hearing from you.

Does My Company’s Work Qualify for SR&ED Funding?

Each year, the Canadian Revenue Agency (CRA) provides over $4 billion in tax credits through the Scientific Research and Experimental Development (SR&ED) program, often to small or medium sized companies.

However, countless businesses across Canada miss out on these incentives despite satisfying the program’s criteria in their everyday activities. In fact, qualifying for SR&ED funding is easier than many think—here are the program requirements that your company may be satisfying right now.

Basic SR&ED criteria

The CRA outlines three requirements your business must complete to earn SR&ED credits:

You attempted to overcome a technological uncertainty
You used unfamiliar, systematic research and development to solve the problem
You aimed to advance a science or technology in the process

While the experiments must be conducted with a measurable goal, they can involve basic or applied research—advancing scientific knowledge with or without an intended use in mind. For example, if your goal is to improve an artificial flavouring, it does not need to be used for a specific food or beverage.

Your projects do not need to be successful to qualify for funding, as long as you can provide evidence of the attempt.

Scientific research

There is a misconception surrounding the program’s scientific research aspect that it is reserved for medical, biological, or other laboratory research. In reality, the research can be as simple as a video game producer researching methods of advancing game play graphics.

The results are not required to be innovative to the industry, but the acquired knowledge or technological advancements must be new to your business.

Experimental development

Many small businesses qualify for experimental development as part of their daily activities without realizing it. Conducting experiments to create new products, machinery and manufacturing procedures are accepted, but so too are innovative services and support work.

Improvements to existing technology also qualify, such as adapting computer software for enhanced efficiency or improving the machinery to manufacture clothing garments.

What doesn’t qualify?

There are some types of research and experimental development that do not qualify for SR&ED funding. Since the projects must be conducted with a planned approach, any random or routine investigations are not eligible, including quality control procedures.

Work that can be classified as commercial gain does not qualify, such as promotions, market research, or the commercial use of a new technology. Experimentation to a product’s style is also not accepted.

Procedures related to mineral, natural gas, or petroleum production, including exploration and drilling, also do not qualify for SR&ED funding.

Companies that file a claim could receive up to 65% of eligible expenses returned as a tax credit. To determine if your business is fulfilling SR&ED program requirements, contact Enhanced Capital Recovery for a free consultation today.

Already Claiming SR&ED? SR&ED Consultants

If you currently claim the SR&ED tax credit, then you already understand the value and importance of it towards your bottom-line. What you may not know, is, many claimants leave unclaimed funds as they miss identifying projects and related expenses because of an oversight or lack of understanding of the SR&ED process.

Recently, the CFO of a large western Canadian home builder felt they were under-claiming on their current filing and prior to filing it he invited Enhanced Capital to review claim. The resulting SR&ED claim increased 5 fold as an Enhanced Capital Specialist identified several additional projects that had been missed.

Had the CFO not called us prior to filing, his company would have missed recovering an additional quarter of a million dollars that the claim increased by due to the additional projects and expenses submitted.

SR&ED is 15% accounting and 85% technical. Failing to identify all eligible projects or not properly documenting can result in leaving thousands of dollars unclaimed.

This tremendous positive difference in returns should be left to the SR&ED experts, not to chance.

There are many examples of claims we have reviewed that did not clearly capture the challenges the organization faced and the obstacles and uncertainties that the CRA would understand and accept.

Our consultants at Enhanced Capital Recovery consist of Food Scientists, Computer Engineers and Manufacturing specialists who complete 100s of claims each year and have first-hand knowledge of what to claim and what to avoid claiming.

By matching the right technical expert for the job, we are able to help you identify all applicable projects and avoid overlooking any claimable activities – even those we find frequently left unclaimed by accountants and other consultants.

Chances are your competitors are maximizing their SR&ED tax refunds by utilizing experts to increase their competitive advantage; shouldn’t you be doing the same?

If you are already claiming the SR&ED tax credit, we can review your current claim to see if we can add value by identifying additional SR&ED eligible projects and related expenses. We will review your technical documentation and identify improvements that will ensure that your claim has the best chance of success. Best of all, since we only bill you on the value we add, if we aren’t able to add any value and increase your claim, you do not pay us anything while still ensuring your risk of leaving unclaimed funds is minimized.

If your claim is under CRA review, Enhanced Capital Recovery can help support the claim and if your claim has been rejected, we can help to review it and improve future claims so they are not rejected.

Our track record of 90+% success in claim defence and claim review speaks for itself!

Regardless of your field, or size of business, Enhanced Capital Recovery is here to help with your SR&ED claim by reviewing your current or past claim. For a free consultation, call Enhanced Capital Recovery at 1-800-470-0235 or visit us online at www.enhancedcapitalrecovery.com or email us at info@enhancedcapitalrecovery.com. We’ll help you quickly determine if there is an opportunity to increase your SR&ED claim.

Enhanced Capital Recovery. Driving innovation in savings and recoveries!