Don't cut corners on SR&ED!

2020-05-26 11:33 AM Comment(s) By Mike

CRA has temporarily suspended SR&ED audits - but they will circle back

CRA has recently announced that due to COVID-19 they are temporarily suspending SR&ED audits, but continuing to process claims.  That's welcome news in these uncertain times.  But don't take it as an opportunity to ignore or bend the rules!  CRA has always had the ability to open up previously processed SR&ED claims for audit but has rarely done so, preferring to focus their resources on incoming claims and taxpayer education.  I am only aware of a few isolated instances where this was done during my time at CRA, and those involved unusual circumstances.  The consequences were devastating for the firms involved, as their SR&ED refunds had already been spent.  As current COVID restrictions ease, CRA may make it a point to circle back and audit (aggressively) at least some of the claims they are now processing.  The best practice, as always, is to file well supported evidence-based SR&ED claims so there is no need to fear a CRA audit.  Skookum SR&ED can help you with this.

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