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.
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.