Not every SR&ED claim is reviewed in detail, and being selected for review isn’t itself a sign something is wrong — but understanding how selection works helps businesses prepare rather than panic if it happens.
What Triggers a Closer Look
● A claim amount that’s grown sharply from the prior year without a clear explanation
● A first-time claim from a company with no prior SR&ED history
● A technical narrative that’s thin, generic, or reads as boilerplate across multiple projects
● An industry or activity type the CRA has flagged for elevated scrutiny in current guidance
● Expenditure patterns that don’t align with what’s typical for the claimed project size
What a Review Actually Involves
A review can range from a desk review of the paperwork already submitted, to a technical review involving a call or site visit with a CRA research and technology advisor, to a financial review of the expenditure calculations. Most reviews resolve through documentation and clarification rather than escalating further.
How to Prepare Before It Happens
● Keep supporting documentation organized and accessible, not just filed away
● Have the technical staff who actually did the work available to speak to it — not just finance
● Know the claim narrative well enough to explain it in plain language, not just as written
If a Review Happens
A calm, well-documented, cooperative response consistently produces better outcomes than a defensive one. Reviewers are assessing whether the eligibility test is genuinely met — clear, honest answers about what was and wasn’t uncertain go a long way, even for the portions of a project that don’t qualify.
