SR&ED CLAIM FOR IT INDUSTRY
There are many misconceptions about this area of SR&ED claims. Many claimants believe their work is eligible because they feel that they have developed an advanced piece of software that solves a business or real-life problems. Others feel that their software is “innovative” or “ingenious”. Just because you are developing software does not mean that you are advancing technology. Many software developers often find this difficult to accept.
As with most SR&ED claims, you will need to establish that you have technological problems, as opposed to technical problems. CRA may also take a narrow view of your work.
Standard software development, database development, business solutions, websites, are often ineligible. But your work could involve technological obstacles if presented properly to CRA.
Good examples of eligible IT work involve problems with encryption, compression, algorithms, logic, performance & quality issues, incompatibility issues, bleeding-edge state-of-the art IT, combinations of media types, and more.
If you answer yes to any of the following questions you could be sitting on an untapped refund.
- Is your hi-tech, IT or computer science company incorporated?
- Have you developed any state-of- the-art software or hardware?
- Does your work push boundaries in Information Technology or computer science?
- Does your work involve networking infrastructure, encryption, e-commerce or computer languages?
- Does your work involve applied mathematics or novel algorithms?
- Do you encounter technological or scientific uncertainty with devices or computing technologies?