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CRA Announces Changes to the Scientific Research and Experimental Development (SR&ED) Claim Form

08/11/2013


On October 31, 2013, the CRA announced changes to the Scientific Research and Experimental Development (SR&ED) claim form. The modified T661 form accommodates legislative changes announced in the 2012 and 2013 budgets and the consolidated policy documents released in December 2012.

The revised form goes into effect as of January 1, 2014.

There are three major changes that are reflected in this form:

  • A new Part 9 for accommodating mandatory disclosure on the claim preparer and billing arrangement.
  • A number of changes to Part 2 of the form to align with the consolidated policy documents released in December 2012.
  • Accommodation of legislative changes from the 2012 budget with regards to the elimination of capital and lease expenditures, revised proxy rate to 55% and the revised base tax credit rate from 20% to 15%.

 

Additional details about each of these changes can be found on the CRA web site.

What do these changes mean to SR&ED claimants?

The fee disclosure requirement is part of the CRA’s wider effort at determining the efficiency and the degree of beneficial impact that this program has on innovation for Canadian businesses through technological advancements.

The changes to the form stemming from the consolidated policy documents reflect the renewed focus of the CRA toward the application of the rules that govern the program. While the program rules have not changed, the application of the guidelines in their consolidated policy will make non-compliant claims more easily detectable. Claimants should consult with their MNP SR&ED practitioners to gain a better understanding of how to respond to the new consolidated policy guidelines.

To discuss these changes further, please contact Ryan Mackiewich, SR&ED Practice leader at MNP by phone at 778.475.5678 or by email: [email protected].