The three (3) conditions required to be eligible for SR&ED tax credits
There are three (3) conditions required for a project to be considered as scientific research or experimental development (SR&ED):
- There must be a scientific and / or technological progress / advancement.
- There must be scientific and / or technological uncertainties / barriers.
- There must be a scientific and / or technical content.
The activities necessary to achieve the scientific / technological progress are also needed to overcome the Scientific / technological uncertainty and need to be conducted through a systematic investigation by qualified personnel.
The fourth criterion often overlooked - SR&ED tax credits
The scientific documentation and financial records constitute the forth criterion. It is important to accumulate evidence to show that you have carried out activities and incurred costs in attempting the scientific or technological progress / advancement.