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SR&ED Budget Changes - Form T661 Gets Another Facelift 

Canadian Tax Adviser

 

June 25, 2013

 

The CRA states that it will release a revised version of Form T661, "Scientific Research and Experimental Development (SR&ED) Expenditures Claim", in October 2013. The revisions will address the legislative changes proposed in the 2013 and 2012 federal budgets that will come into effect starting January 1, 2014. As well, changes to the form will be made to ensure it is consistent with the consolidated SR&ED policy documents released in December 2012

 

Background
Among other measures, the 2013 federal budget announced changes to require additional information on third party preparers involved in the preparation of a SR&ED claim, including a penalty for incomplete or non-disclosure. The budget also provided additional federal support for business innovation, continuing to respond to recommendations made by the Jenkins report. See TaxNewsFlash-Canada 2013-10, "2013 Federal Budget Highlights" for details.

 

The 2012 federal budget announced changes to simplify the SR&ED program, make the program more cost-effective and streamline the compliance and administration efforts of business and CRA.

 

Form T661
The CRA notes that the new version of the form will also consolidate former Sections B and C in Part 2 so that all claimants answer the same three questions in Section B. The order of the questions in Section B will also be changed for consistency with the Eligibility of Work for SR&ED Investment Tax Credits Policy document released in December 2012.

 

Effective date
The CRA advises that the revised Form T661(13) will be effective as of its publication date, however the CRA will accept the existing T661(12) version of the form until December 31, 2013. Starting January 1, 2014, the CRA will accept only the new T661(13) version of the form for all tax years.

 

For more information, contact your KPMG adviser.

 

 

 

 

 

Information is current to June 25, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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