How We Assisted a Toronto Tech Company to Maximize SR&ED Tax Credit

A Toronto-based technology company approached Gondaliya CPA for guidance on claiming SR&ED (Scientific Research & Experimental Development) tax credits. The company was investing in R&D but lacked the expertise to navigate the complex application process and maximize their eligible credits.

About the Client

Business Type: Technology / R&D company
Location: Toronto, Ontario, Canada
Previous Setup: Limited experience with SR&ED claims
Key Challenges:
- Identifying eligible R&D activities and expenditures
- Complex documentation and filing requirements
- Maximizing refundable and non-refundable tax credits
- Avoiding CRA audit risks

Client Objectives

Identify all eligible SR&ED activities and expenditures
Prepare accurate documentation to support the claim
Maximize refundable and non-refundable SR&ED tax credits
Ensure compliance with CRA requirements to avoid audits

What We Did

1. R&D Activity Review & Assessment
We analyzed the company’s projects, processes, and expenditures to determine eligibility for SR&ED tax credits.

2. Documentation & Claim Preparation
Our team prepared detailed technical narratives and financial records to support the SR&ED claim in accordance with CRA guidelines.

3. Tax Credit Optimization
We calculated the maximum eligible credits, including both refundable and non-refundable portions, to reduce the company’s overall tax liability.

4. CRA Submission & Support
We submitted the claim and provided ongoing support in case of CRA questions or audit requests, ensuring a smooth review process.

Results

Maximized SR&ED tax credits, significantly reducing tax liability
All eligible R&D activities accurately documented and claimed
CRA compliance maintained, minimizing audit risk
Streamlined process saved management time and effort
Increased cash flow for reinvestment in research and development

Summary:
Toronto tech companies trust Gondaliya CPA to navigate the SR&ED process, claim all eligible credits, and ensure CRA compliance, enabling them to reinvest savings into innovation and growth.