VTRAC group helps Canadian business owners recover their investment in the form of refundable tax credits from the Federal and Provincial governments. A typical engagement with us can help your company recover up to $150,000 a year depending mostly on your labour costs. This investment is often in your bank account less than 200 days after you start working with us. We use the right words and concepts to ensure you are eligible for a significant tax refund. The CRA needs to be convinced that technical obstacles, uncertainties, or significant challenges had to be overcome along the way.

We identify the essence, scale and cost of your work and carefully craft an argument that explains its significance. Our experienced team has successfully obtained large amounts of money for a variety of industries including:

• Web 2.0 software development and online web application development
• Printing technology
• Medical device prototypes and production
• Manufacturing techniques with aluminium, plastic, rubber and die cutting
• Online video delivery and cluster computing
• FPGA and ASIC design for telecommunications
• Commercial production of baked goods and other foods

The SR&ED is an incentive offered by the Canadian Federal and Provincial governments. It is administered by the CRA to encourage and support innovative Canadian companies.
Any business conducting research and development in Canada that results in new or improved products and/or processes may be eligible for the incentive.
The research and development that the company is undergoing must be done in Canada.
You have up to 18 months passed your company’s taxation year-end in which the research and development project commenced.
Your company could be eligible to recover up to 82% of the expenses through this Federal and Provincial R&D tax incentive.
The Canada Revenue Agency (CRA) offers SR&ED refundable tax credits to innovative Canadian companies that are developing or enhancing products and/or processes.
Valued at up to 82% of the development costs, Canada offers some of the world’s most lucrative research & development (R&D) tax incentives. To be eligible, the company must have made an attempt to develop or advance a product or process using an experimental approach. The project does not have to have been a success to be eligible. This refund has been made available to your company even if the company has already paid corporate tax. Ensure that your refund submission includes a project report that describes the work being done in R&D as well as the necessary financial information in regards to the costs or projected costs.
This is an incentive program that encourages and supports Canadian innovation and the CRA urges companies to apply. If you are a first time applicant you are not required to provide time sheets and are able to estimate your costs. However, time sheets are required for the periods after the first application. If you were to apply today and still continuing development, the CRA would expect you to have time-sheets or other documents from this point forward for any future applications.
Businesses that are conducting R&D activities that lead to new or improved products and/or processes are eligible to apply. If you are developing new models, creating customized equipment, using new materials, pioneering software, e-business solutions or web-enabled applications you may qualify to claim SR&ED tax credits.
Technological

• Technological advancement within your business (development does not have to be unique, a competitor may have previously developed something similar to what you are attempting to develop, however, if the method is unknown to the public, you are still eligible)
• There must be technological uncertainty
• Must show that the experimental process was followed

Financial

• Wages must only be for employees involved in R&D and any contractors must be Canadian tax payers
• Capital equipment is subject to limits
• Materials used (transformed into a prototype or scrapped/consumed)

Generally, a Canadian-controlled private corporation can earn an investment tax credit of 35% up to the first $3 million of qualified expenditures for SR&ED carried out in Canada, and 20% on any extra amount. Other Canadian corporations, proprietorships, partnerships, and trusts can earn an investment tax credit of 20% of qualified expenditures for SR&ED carried out in Canada. Tax credits under this program range from 20-35% of eligible R&D costs.
We can create your SR&ED claim for a commission of the refunded claim. This means that there is no up-front cost to your company and we have the strongest incentive to successfully generate as large a rebate claim as possible.

For more information, please contact faridv@vtrac.com or call (416) 366-2600 x 239.