Time Tracking for SR&ED Claims 101

October 23, 2014

In Partnership with Launch Academy

WHO WE ARE

Engineers and financial professionals

Technology-first approach to SR&ED

Professional Services Firm of the Year

SR&ED ELIGIBILITY

WHO CAN CLAIM?

CCPC = Canadian Controlled Private

Corporations

Non-CCPC = Foreign or Publically

Owned Corporations

Partnerships

CCPC AND SME

SME = Small to medium sized enterprise generating less

than $500K in taxable net income in the prior fiscal year

ICTs are refundable ($$$)

* Salaries and sub-contractors MUST be Canadian tax payers

THE DO’S AND DON’TS

Do’s for Companies:

Pay yourself and staff

Start time tracking and proper

documentation now

Incorporate your company and

ensure clear IP ownership

THE DO’S AND DON’TS

Don’ts for Companies:

Underestimate the importance

of documentation

Focus on the business

opportunity

Leave your SR&ED claim until

the last minute

CRA REVIEWS

CRA Review ≠ Tax Audit

Multiple types of CRA Reviews:

First Time Claimant Advisory Service (FTCAS)

Desktop

Financial

Technical & Financial

DOCUMENTATION - TECH

Documented at the

time the work was

completed

Technical obstacles

or challenges

Dated

DOCUMENTATION - TIME

TIME TRACKING

Key Points for Tracking

Granularity of time

Normalizing your hours

Self-limiting descriptions /

estimates

Supporting activity vs directly

engaged

TIME TRACKING TOOLS

Replicon (http://www.replicon.com/)

Greenhopper (http://www.atlassian.com//)

VersionOne (http://www.versionone.com/)

Basecamp (http://basecamphq.com/)

Harvest (http://www.getharvest.com/)

BillQuick (www.bqe.com)

Tenrox (www.tenrox.com)

ISSUE TRACKING TOOLS

GitHub

Assembla

Bugzilla

FogBugz

JIRA

Redmine

DOCUMENTATION - $$$

EXPENDITURES

Types of Payroll:

T4 wages / part-time

Contractor payments / invoices

Cancelled cheques / proof of

payment

Income tax treatment

Dividends / shares / sweat

equity

HOW WE WORK

Contingent

Scope your claim upfront and invoice when your claim is

successful

Efficient

Only require interviews & documentation

Proactive

Ongoing engagement and future recommendations

WHY WORK WITH US

Highly reputable

Technology-

focused

Efficient

Well-connected

JAMES SUK

PARTNER

604 779 7770| jsuk@boastcapital.com

BoastCapital.com | @BoastCapital | @jimmyzook

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