We all have been there, right? Whether you’re filing an SR&ED claim for the first time or already experienced, getting tax incentives approved by the government for your business is tricky. Moreover, your tax credit application can be denied due to several reasons. If you’re aiming at reviewing SR&ED eligibility in Vancouver and find out what to do when your claims are disapproved, a trusted consultant can guide you through the entire claim process.
The tax credit program is designed to support innovative scientific research and development projects across Canada. However, there are certain steps to follow in order to get the grants approved for your innovation. Innotek is one of the reliable SR&ED firms in Vancouver committed to making your SR&ED claim process simple. We at Innotek, identify claimable projects, review your documents, prepare an all-inclusive report and prepare all your financial documents before submitting the claim to the CRA.
Why was my SR&ED claim denied?
Many entrepreneurs have received the red flags upon submitting an SR&ED claim. What can be the possible reason for this denial? Well, there are several occasions when the documents are not complete or the CRA believes that your project doesn’t meet the eligibility requirements. Over the past 6 years, a large number of claimants are submitting tax incentive applications, but you have to cross a lot of obstacles to convince the government to fund your business.
What am I supposed to do if my SR&ED claim gets denied?
Several SR&ED claims are denied every year but luckily, this is not the end of the world. There are possible solutions to get your grant application approved, following some organized steps can eventually make your case strong and lets you save a decent amount of tax incentives.
Here are some of the initiatives you can take to get a reconsideration of your claim.
Understand the denial terms:
The moment you find out that your claim has been disapproved, you need to understand whether your claim was ineligible or unsubstantiated. When it’s considered ineligible, it means that the CRA considers your business not keeping up with the definition of the Income Tax Act.
On the other hand, unsubstantiated defines as the CRA is not satisfied with the evidence you’ve provided and requires more documents to approve your claim.
Ask for a second administrative review:
The moment you receive a denial on your application, the best thing to do is requesting a second review to the administrative authority. On the contrary, you can also place an appeal to the Tax Court of Canada, but before you do so, get in touch with an official SR&ED consultant to make the process simpler for you.
Get assistance from an SR&ED consulting firm:
They say precaution is better than cure, likewise before you submit your SR&ED claim, do it systematically with proper guidance from a professional consultant. Professional consulting will not only determine your SR&ED eligibility but assist you in getting your claim approved.
Innotek works on your Scientific Research or Experimental Development claim application from start to finish ensuring all your tax and accounting reports are in order and your official documents are accurate. Request a free consultation today to discover if your business is eligible for a government grant.
