Publicly traded companies operating at a loss may
conclude that it is pointless filing an SR&ED claim. There can be
significant benefits in filing even if there are no current cash benefits.
First, identifying SR&ED expenses and claiming
them allows the company to add the expenses back to income and to increase the
SRED Pool by the amount of those costs. Whereas non-capital losses can be
carried forward 10 years, the SRED Pool may be carried forward indefinitely. If
a company is in danger of not being able to use its losses within ten years of
incurring them, being able to carry them forward beyond 10 years can be a
significant advantage.
Further, the non-refundable investment tax credits (“ITCs”)
earned by a loss company may be carried forward 20 years. And they do not cease
upon a sale so long as the purchaser is another for-profit corporation in the
same or similar business. Claiming those ITCs can enhance the value of the
company.
Moreover, if the applicant is doing its SR&ED in
Alberta, a refund can be had on the Alberta SR&ED credit arising from the first
$4,000,000 of eligible expenses annually. That’s up to $400,000 that can be
refunded even if the company is not eligible for refundable ITCs under the federal
SR&ED rules.
Don’t dismiss the opportunity to file your SR&ED
claim too quickly. People like those at getsred.ca can help you determine the
pros and cons of filing.
No comments :
Post a Comment