Research & Development Tax Services  

Finding ways to gain tax credits is always important—never more so than in the uncertain economy in which we find ourselves today. R&D tax incentives can have a significant impact on your bottom line, as they can help you offset taxes payable. If your company undertakes product and process development activities, you may qualify for the Canadian federal government’s tax incentive program for technological innovation.

Through its tax incentive program for technological innovation, the federal government delivers more than $3 billion annually to companies doing research and development (R&D) in Canada. The Organisation for Economic Co-operation and Development (OECD) has found that the strong federal and provincial tax incentives available to R&D performers in Canada make the after-tax cost of R&D cheaper here than almost anywhere else in the world.

However, navigating your way through the rules and regulations of Canada’s R&D tax incentive program can be daunting. How do you find out whether you are even eligible for R&D tax credits? And, if you are, where do you begin?

Carlo Ciaramitaro

Carlo Ciaramitaro

Partner, Tax - National Practice Leader - R&D Tax Incentives Practice

519-251-3522

Meeting These Challenges

Our multidisciplinary R&D tax team of engineers, accountants, and tax professionals understands the various R&D requirements and how they are applied. They are familiar with recent court cases and administrative practices, and have excellent working relationships with all levels of government in Canada.

We can help determine whether you are eligible to recover tax credits for the current year and prior years (subject to certain time limits) for activities your company has previously undertaken. As a result, you may be able to enhance tax credits to offset taxes payable and, in some cases, receive refundable cash incentives.

Working with you, our team can help:

 

  • Identify eligible R&D activities and expenditures to help ensure that every eligible project is identified so you can enhance your investment tax credits
  • Develop technical descriptions of your R&D activities and prepare the required tax forms
  • Prepare or review your R&D claims to confirm that they contain the necessary information and that all eligible activities are identified
  • Train your staff to identify eligible projects and activities, prepare technical reports, and set up a control system for filing the reports and the supporting financial data
  • Participate in Canada Revenue Agency (CRA) reviews to help you justify the validity of the scientific and financial basis for your claim, and process it to its successful conclusion
  • Conduct strategic R&D tax planning to identify opportunities to restructure or relocate your operations and activities to enhance R&D tax benefits
  • Review your organization's mix of international R&D projects in light of tax benefits granted by various countries. To do this, we can draw upon the resources of KPMG’s R&D Tax Incentives professionals around the world for assistance.

 

The bottom line? Our R&D professionals can help you enhance R&D tax credits while freeing up your technical staff's time so they can focus on implementing your corporate vision for innovation.

Additional Tax Credit Programs
R&D Tax Credits are just one of the many tax credits available in Canada. You may also qualify for other federal and provincial government incentives in such areas as:

 

  • Apprenticeships
  • Biotechnology
  • Co-operative Education
  • E-Business
  • Film, video, and television production
  • Industrial research
  • Interactive digital media.

 

We can help you identify which programs you may be eligible for in the current year and in prior years. If your company qualifies, you may be able to offset taxes payable and, in some cases, receive refundable cash incentives.