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SRED eligibility: Question 2

In our last post, we addressed the first of the five questions which must have a Yes answer for CRA to consider your project as SR&ED.

Hypotheses Resolving Technological Uncertainty

The second question has to do with whether you formed hypotheses having the purpose of resolving the technological uncertainty addressed by the first question.  The formulation of a hypothesis does not happen in absence of consideration of the technological uncertainty. You can’t very well hypothesize a resolution unless you have thought about the problem.

A hypothesis, in the context of SRED, is an idea or suspicion about what might work in reducing or eliminating the technological uncertainty. It is best to write it down.  Every time you have an idea about what will might work, record the idea. This is so that you can provide evidence to CRA that the answer to Question 2 is Yes.

View the 3rd SRED eligibility question.

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Related Information

Eligible SR&ED Costs

The in-person review of your SRED claim involves determining whether you did eligible work, and then if it is decided that you did, a reviewer makes a decision as to what it cost, i.e.: what expenditure amounts are eligible.

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