Lack of scientific process and documentation may result in an activity’s expenses being disqualified for a tax credit under the scientific research and experimental design incentive program. An activity in which you plan to claim a SRED tax credit should follow a scientific method and track hypotheses testing and results. In addition, experts knowledgeable in the field should be significantly involved in the research activity. When submitting an SRED claim or when planning to appeal a CRA decision, you should seek professional advice from an experienced Canadian tax litigation lawyer to clarify the Income Tax Act and relevant case law on your SRED tax issue.
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."