We know how much effort an SR&ED application is and so seeing it come back rejected can feel just so much worse. But don’t fret and give up just yet; there is a chance you might have been wrongly denied and you can get the funding you deserve!
Innotek can be your next step to reversing your rejected claim and rightfully getting the IT startup funding you need. Innotek helps you confidently get software government funding in BC. We work closely with you to help you get IT startup grants, by using our experience within the field and SR&ED.
How and Why Was My Claim Denied?
SR&ED, which stands for Scientific Research & Experimental Development, is one of Canadas largest tax incentive programs. Because of this, and the increased popularity of this incentive as compared to just a couple of years ago, denials and reductions have become more and more common. The first step to moving forwards is clearly understanding why your claim was reduced or rejected to properly make adjustments.
If your SR&ED claim was denied you would have received a statement saying it was “unsubstantiated” or “ineligible” and this is a big help to finding out the reason for your rejection. Unsubstantiated suggests that the CRA found they weren’t provided with sufficient information or evidence to properly determine your status. Ineligible is near the opposite, instead of not supplying enough information everything was provided adequately; but the work was just found to not fit SR&ED requirements.
Should I Look into Getting a Second Opinion?
After getting this disappointing result it’s a good tactic to look into having another look this over to determine whether or not the claim denial is grounded. Before you go up against the CRA you, of course, want to have everything sorted out straight.
And you certainly don’t want to waste your time if it turns out that even though you were close to qualifying you just couldn’t either because of your specific work, lack of achievement in the field, lack of documentation, or more. If you go in unprepared or uninformed about SR&ED then that significantly lowers your chance of changing the denial.
What To Do if My SR&ED Claim Was Denied?
Initially, you need to look at your practical options, if it was just recently denied then there’s a chance you can turn it around without having to resort to an appeal. By either providing more in-depth evidence or drafting a written argument. If the denial seems baseless and not fully supported then you can submit a case to SR&ED management instead of filing an appeal.
If you contact SR&ED management a manager will take a second look and assess any problems or grievances you had, postponing the denial until any issues can be cleared up fully. If you provide a grounded argument against the denial and evidence then it’s not unknown for the CRA to reverse the initial decision to resolve the issue.
Are There Any Other Solutions?
If that doesn’t work out, then you can escalate it to the Assistant Director level. At this point, it’s imperative to have a consultant ready to help and streamline the conversation with SR&ED senior management.
Past this, there is of course the option of going to appeals. Though to escalate to appeals means the standards for a decisive change is significantly higher. For a properly structured appeals case, it may require much more documentation and evidence in your favour.
Trying To Reverse a Denied Claim? Talk to a Trusted SR&ED Consultant in BC
Turn to the experts at innotek that will be on your side and aim to give you the best guidance today. Call 604-259-9937 or reach out to us at info@innotek.ca to get a consultation today.
