The fifth SRED eligibility question that CRA uses is whether a record of the hypothesis and the test results were kept while the work was being done.
SRED eligibility: Question 4
The next question is whether the way the project was done was for the purpose of achieving a scientific or technological advancement.
SRED eligibility: Question 3
The third one has to do with whether the overall approach taken to resolve the technological uncertainties reflects “a systematic investigation” and includes testing the hypotheses through “experiment or analysis”.
SRED eligibility: Question 2
The second question has to do with whether you formed hypotheses having the purpose of resolving the technological uncertainty addressed by the first question.
SRED Eligibility: Question 1
Was there a scientific or technological uncertainty? This means that current technology is not at the place where it allows you to know if you can achieve a new (or improved) capability.
The 5 SR&ED Questions
The law says several things about SR&ED. There has to have been a scientific or technological uncertainty. This means that the scientific or technological challenge was not resolvable by only using methodologies (techniques and procedures) that are standard practice for competent practitioners in the knowledge field to which the project pertains
What is SR&ED?
The fundamentals of it are that you need to be seeking technological advancement through scientific research or experimental development that is done via systematic experimentation or analysis.
HOW DO I KNOW WHICH COSTS ARE ELIGIBLE?
If you are trying to resolve a technological uncertainty by application of systematic experimentation and investigation, you may well have SRED expenses eligible for a hefty tax rebate.
CRA SR&ED Claim – How Long Does it Take To Get Together?
One of the concerns many people have about filing the SRED claim is the amount of time they will have to spend. It would be misleading to say that you would not notice the demand on your schedule. It DOES take time, but it can be minimized.