Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/31/2012

Canada - Preparing for new R&D regime 

October 31:   Companies that claim credits for scientific research and experimental development (SR&ED) may be affected by changes to this program coming as soon as 1 January 2013.

Canada’s government recently tabled a bill (Bill C 45) to enact the 2012 federal budget including these changes, which is expected to become law before the end of 2012.


Companies doing research and development may want to consider accelerating certain expenses so that they are incurred before 2014, when possible, so that they can get the most out of the current SR&ED tax credit program before the changes take effect.


Companies doing research and development may also be affected by a Canada Revenue Agency initiative to clarify its administrative policies on the SR&ED program.


Further, the government recently completed consultations to better understand why many companies choose to hire consultants on a contingency fee basis to prepare their SR&ED claims.


Read an October 2012 report prepared by the KPMG member firm in Canada:
Are You Ready for the New R&D Regime?




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