Factors to consider when selecting your SR&ED, OIDMTC service provider:
1) Industry knowledge and in depth experience
2) Government Incentive Program knowledge & experience
3) Ethical Business Practice
4) Experience in interfacing with government agencies
5) Testimonials in your field of expertise
1) Industry knowledge and in depth experience: –
It is pertinent to verify industry knowledge and experience when selecting the appropriate SR&ED / OIDMTC consultant. If your company specializes in software development, you want your SR&ED consultant to be a software developer so they can speak technically with your lead developer regarding your project(s) and eligible SR&ED expenses. You would not assign a manufacturing engineer to a software company and vice-versa. It is not sufficient to possess only SR&ED or OIDMTC program knowledge, as in many cases savvy consultants are able to view your technology from different prospective and position your submission in a manner that will maximize the dollar value, yet still meet the programs criteria.
2) Government Incentive Program knowledge & experience – SR&ED (scientific research and experimental development) tax credit is a convoluted Canadian tax credit program with many gray areas and room for different interpretations.Your technology or media content consultants should have years of experience in filing and a full understanding of your product and technology.
3) Ethical Business Practice – There are other complacent consulting firms that tend to be more aggressive in focusing on the sales side and signing up as many clients (eligible or not). Their goal is to submit as many claims as possible to see what sticks. Their risk is minimal and many tend to walk away if you are audited and provide zero assistance in a time of need. The outcome in almost all cases is a CRA audit which results in your SR&ED, OIDTMC claim being slashed or denied. Furthermore, your company becomes a target for future audits, even if you switched your tax credit preparation service provider. These type of consulting firms have been red flagged by government agencies and expose your company as becoming a high risk candidate for future audits.
4) Experience in interfacing with government agencies: – Your SR&ED or OIDMTC partners should regularly interact with government agencies and maintain relationships to better position your submission(s). Being connected to government agents may assist in facilitating your claim. This includes auditors, processors and other government entity’s.
5) Testimonials in your field of expertise: -Requesting relative testimonials to your field of expertise is crucial for assessment. As part of your due diligence, it is important to check references and compare the size of businesses to your organization.