Tuesday, 28 February 2017

Question 4



We have been examining the 5 questions for which CRA requires a Yes answer for a project to be determined as SR&ED. Our last post on this is at http://gordon-feil-sred.blogspot.ca/2017/01/question-3-continued.html.

The next question is whether the way the project was done was for the purpose of achieving a scientific or technological advancement. A product or process is sometimes improved without there being a gain in understanding the underlying principles. This is not SR&ED. For there to be SR&ED, there has to be an increase in knowing why and how something works OR doesn’t work. The issue is whether the applicant’s scientific or technological knowledge base has increased by doing the project.

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