Asset Sale vs Share Sale

Technology companies – in fact most small businesses – often have difficulty taking advantage of the recently enriched lifetime capital gains deduction. When first introduced the capital gains deduction was targeted the first $500,000 of capital gains on family farms and qualified small business corporation shares (“QSBCs”). Since then the lifetime capital gains limit has […]

Differing Views of Innovation in Canada

Do concerns regarding the effectiveness of Canada’s SR+ED Program stem from an incomplete understanding of the state of innovation in Canada?  As recently as September 9th of 2013, the Conference Board warned that “Canada’s economy is on a ‘path to mediocrity’ as innovation lags”. At about the same time the Startup Genome was reaching a much […]

The SR&ED Audit – Q&A

WHEN SHOULD CLAIMANTS CREATE TECHNICAL DOCUMENTATION? (and when should they assemble it?) Preparing for an “SR&ED” (Scientific Research and Experimental Development) tax audit should really begin well before your company receives notification that your claim is under review. In fact your company should begin assembling supporting documentation at the same time that you decide to […]

TECHNOLOGICAL ELIGIBILITY: THE NEW NORMAL

JENTEL MANUFACTURING CASE RAISES THE BAR [office src=”https://onedrive.live.com/embed?cid=DED5DA8C9025C21D&resid=DED5DA8C9025C21D%217419&authkey=ANHkzqsSAyYtxps&em=2″ width=”476″ height=”288″] A case decided in May of 2011 has had an enormous impact on the current assessing practice of CRA with respect to determining eligibility of SR&ED projects. While about 95% of claims involve ‘experimental development’ (“ED”) – as opposed to scientific research (“SR”) – the […]

CRA Doubles Size of Vancouver SR&ED Audit Team

The Vancouver contingent of SR&ED auditors has doubled from 2012 levels. At the same time, the amount of incentives being assessed is declining. With more staff, auditors are becoming more demanding so claims that are poorly documented are very likely to be reduced. For startups and first-time claimants this can be difficult. Even experienced claimants […]

Differing Views on Innovation in Canada

Do concerns regarding the effectiveness of Canada’s SR+ED Program stem from an incomplete understanding of the state of innovation in Canada? by Rob Farrow, CPA, CGA President, Sutton Levinson Inc. (from a document presented to the CRA November 6, 2013)  As recently as September 9th of this year the Conference Board warned that “Canada’s economy […]

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