Formed in October 2010, the Federal R&D Review Panel (Jenkins panel) has been asked to make recommendations to the Government of Canada on the effectiveness of federal support of business research and development (R&D). Among the programs examined by the panel will be the scientific research and experimental development (SR&ED) program.
Recently, Deloitte made a submission to the Jenkins panel that examines the role of government in stimulating R&D.
In particular, our submission analyzes the SR&ED program in the context of the following questions:
- Does the current structure of the SR&ED tax credit encourage incremental investment in R&D? Does it free up capital to invest in other aspects of innovation activities in the firm? Does this vary by size, ownership, sector or nationality of firm?
- What are the strengths and weaknesses of the refundable portion of the SR&ED tax credit for Canadian-controlled private corporations and to what extent does it encourage the growth and commercial success of SMEs?
- Bearing in mind the improvements being made by the Canada Revenue Agency (CRA), are there additional opportunities for change to simplify the administration of the SR&ED tax credit and facilitate the applications process?
Read Deloitte’s full submission to the Jenkins panel.
About Deloitte:
Deloitte, one of Canada’s leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 7,600 people in 57 offices. Deloitte operates in Québec as Samson Bélair/Deloitte & Touche s.e.n.c.r.l. Deloitte & Touche LLP, an Ontario Limited Liability Partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
