Project Dashboard...SR&ED tax incentives: To qualify for SR&ED tax incentives, companies must...

The PwC SR&ED advantageMake the most of R&D tax incentives

O U T S I D E

www.pwc.com/ca/en/sred

© 2012 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. 1404-01 082011

Displays all projects, related expenditures and project status:

•securelyaddusersandassignthemonlytospecific projects

•consolidatemultipledivisionsintoasingleclaim

•oneclicktakesyoutothe project details

•easilyaddorremoveprojects

SR&EDNavigator

Project Dashboard

Find your way through the SR&ED mazeManyorganizationsfeeldisorientedbytheincreasinglycomplexandchallengingSR&EDclaimsprocess.Thesheervarietyofprojects,stakeholdersandeventimezonescanmaketheeffortoverwhelming.

Recognizingtheneedtocentralizeandproject-managetheSR&EDclaimprocess,PwCworkedwithawiderangeofcompaniesanddevelopedSR&EDNavigator.Thissecure, web-basedapplicationletsprojectteammemberscollect andprepareinformationquicklyandefficiently,helpingthemmeet deadlines with more complete and accurate information.

Streamline your claims processSR&EDNavigatorhelpsyoumanageyourSR&EDclaimsprocess,offering:

•aneasy-to-use,secureandcentralizedenvironmentforallyourSR&EDinformation

•importingofSR&EDclaiminformationintoprofessionaltaxpreparation software seamlessly, with a few simple clicks

•significanttimesavingsfortax,financeandengineeringdepartments

•anintuitiveuserinterface,reducingstafftraining

•workflowflexibilitythroughsecureweb-basedaccess

•implementationandupkeepwithnoadditionalsupport fromyourITdepartment

•collectionanduploadingofsupportingdocumentationforSR&EDclaims

•comprehensivediagnosticstoaidpreparationofcompleteSR&EDclaims

•directaccesstotheProjectDashboard.

Cathy A. Wraggett, CAPartner

8yearsSR&EDexperience

416 869 2446 cathy.a.wraggett@ca.pwc.com

Chris Bodnar, MBAManager

416 725 0458 christopher.a.bodnar@ca.pwc.com

Greg P. Garland, MBA,P.Eng.,MechanicalEngineeringAssociatePartner

905 949 7440 greg.garland@ca.pwc.com

Prabh (Bob) Singh, CAAssociatePartner

905 897 4519 prabh.singh@ca.pwc.com

Vik Sachdev, CAPartner

416 869 2424 vik.sachdev@ca.pwc.com

Contacts

I N S I D E

The PwC SR&ED advantage

Likemuchintax,thebasicsofSR&EDaresimplein theory,butgettingitrightinreallifeischallenging.

SR&ED tax incentives:ToqualifyforSR&EDtaxincentives,companiesmustperformworkinCanada thatisbasicresearch,appliedresearchorexperimentaldevelopment.Formost,SR&EDtakestheformofexperimental development.

SR&ED tax credits:Canadian-controlledprivatecorporations(CCPCs)areeligiblefora35%federalrefundabletaxcreditonupto$3millionofeligibleexpenditures.Additionally,allprovinces(exceptPEI) offercorrespondingcreditsforSR&EDundertakenintheparticularprovince.CompaniesthatarenotCCPCsareeligiblefora20%non-refundablefederalcreditand certainprovincialrefundableandnon-refundablecredits.

Claiming SR&ED refunds:ToreceiveaSR&ED refund,acompanymustfilefederalandprovincial SR&EDformswithitscorporatetaxreturnswithin 18monthsofitsyearend.Late-filedclaimswillnot beacceptedandwillresultinthepermanentlossof allSR&EDbenefitsrelatedtothatyear.

Qualifying costs: Qualifyingcostsarethosefor:

•salaries,wages,andrelatedbenefitsofpersonneldirectlyinvolvedinSR&EDactivities (e.g.,engineers,technicians,scientistsanddevelopers)

•materialsandsupplies•contractexpenditures•overhead(actualor “65%proxyelection”)•capitalexpenditures.

… and beyondTogetthemostoutofSR&EDandensurethatallworthwhileclaimsaremadeproperlymeansgoingbeyondtheseSR&EDbasics—withefficiency,flexibilityandinsight(seebelow). Butthere’ssomuchmoretoyourworldthanSR&ED.Extendyourbusinesshorizons:Tapintoourextensiveexpertise in tax, audit and advisory services. Meet our seasoned professionals,andletushelpyoufindnewwaystogrow yourbusiness.

Canada Revenue Agency

Your engineering/ technical group

Your tax and accounting group

PwC SR&ED team

Experience our experience Your SR&ED claim…Your needs are unique.

Fortunately,PwC’sscientificresearchandexperimentaldevelopment(SR&ED)professionalshavethefinest cross-disciplinarycredentials.Ourteamofengineers,scientists, accountants and tax practitioners has exactly the expertise required to understand the issues and challengesyouface—andtomatchyourSR&EDclaims and your industry.

Tohelpyoumaximizeandsupportyourclaims,webringtobearextensivetechnical,financial,tax,industryandregulatoryexperience,includingmanyyearsworking withtheCanadaRevenueAgency(CRA).

Industry scopeThePwCSR&EDteamhasexperienceinmanyindustries,including:

•aerospace•agriculture•automotive •clean tech•energy•entertainment & media•life sciences •manufacturing

•mining•oilandgas•pharmaceuticals •pulp and paper •software •technology•telecommunications •utilities

Working togetherBecauseittakesstrongworkingrelationshipstodelivereffectiveSR&EDsolutions,weapplyanintegratedapproach. Ourteamcollaborateswithallkeystakeholders, so that your claims are well captured andfullysupportable.

Ourgoalistocreatealastingrelationshipwithyou.We’lldothisbyaddingvaluetoyourclaimandhelpingtoreducethetimeandresourcecommitmentyoumaketoyourSR&EDclaimsprocess.

UsingaprovenSR&EDprocess,weaddvaluetoyour claims and reduce the demands on your time and resources.

•confidencethatalleligibleSR&EDprojectswillbeidentified

•reducedclaimpreparationtimedemandsonyour technical staff

•flexibleserviceoptions,includingclaimstrategydevelopment, claim review, claim preparation, tax return preparation, audit support and taxstructuring

•flexiblefeeoptionsalignedwithyourbusinessrequirements

•accesstotheinsightandexperienceofPwC’sNationalSR&EDDirector,theformerheadoftheCRA’sSR&EDPolicyDirectorate

•thebenefitofourstrongrelationshipswithseniorCRAandFinanceofficials

•ourrecommendationsforsystemandprocessimprovements

•proprietarytechnologysolutions(includingSR&EDNavigator,describedonthebackpage)to help you capture, document and maintain SR&EDinformation

Integrated SR&ED approach Optimize claims year-over-year

SR&ED applicant

Oversee strategic project management

Identify SR&ED eligible projects

Recommend SR&ED document capture processes

Prepare claims

Knowledge transfer to your finance and technical staff

Identify SR&ED process improvement

Manage and support CRA reviews