SR&ED Audit Defense
A CRA review can be frustrating and confusing, especially when you are unsure what information is required, how to respond, or what the outcome could mean for your SR&ED claim.
You don’t have to navigate it alone.
While a CRA review is a normal part of the SR&ED program, being prepared is crucial. Having the right information, responding accurately and on time, and effectively communicating the eligibility of your work can make a significant difference throughout the process.
EVAMAX helps companies prepare for and respond to CRA reviews and audits, providing experienced guidance throughout the process. From reviewing your original claim and preparing responses to communicating with CRA and pursuing available recourse, our team works with you to build the strongest possible case for your SR&ED claim.
What Is an SR&ED Audit or Review?
The Canada Revenue Agency (CRA) conducts SR&ED reviews and audits to determine whether a company's claim meets the program's eligibility requirements and whether the claimed expenditures and activities are properly supported.
A review may involve requests for information, discussions with CRA officials, technical questions about your SR&ED work, or requests for additional documentation.
The process can be complex and time-consuming. An experienced SR&ED consultant can help ensure your responses are accurate, complete, and clearly presented.
What You Need to Know About a SR&ED CRA Audit
Being selected for an audit does not necessarily mean something is wrong.
Being selected for a CRA review or audit does not indicate that the taxpayer is suspected of wrongdoing. Reviews and audits are part of CRA's due diligence process to assess compliance with the SR&ED program. However, it is important to take the process seriously and ensure you are properly prepared.
First-time claimants may receive additional CRA review support.
If you are a first-time SR&ED claimant, you may receive a First-Time Claimant Advisory Service (FTCAS) review from CRA. During this process, it is important to demonstrate that your claim and supporting information comply with SR&ED requirements. EVAMAX can help prepare you for these discussions and ensure you understand what information may be required.
CRA may begin the process with a Request for Information (RFI).
An audit may begin with an initial RFI from CRA. Providing timely, accurate, and well-supported responses is an important part to successfully navigating the process. If CRA requests additional information, an on-site meeting, or further discussions, there is no need to navigate these steps alone. EVAMAX can help prepare your responses and support you throughout communications and meetings with CRA.
A declined claim does not necessarily mean you cannot claim SR&ED again.
If a previous SR&ED claim has been declined, you may still be eligible to make SR&ED claims in subsequent fiscal years, provided the work and expenditures meet the program's requirements. Each fiscal year and claim should be assessed based on the SR&ED work actually performed and the applicable eligibility requirements.
Claims may be challenged because of how information is presented.
SR&ED claims can be challenged when insufficient information is provided, information does not clearly support the claimant's position, documentation is incomplete, or responses are not provided within the required timelines. There can also be differences in interpretation between CRA and the claimant regarding whether work or expenditures meet SR&ED requirements.
This is where experienced guidance with EVAMAX can make a difference. Contact EVAMAX Today
Why Are SR&ED Claims Rejected or Challenged?
There are several reasons a claim may be reduced, challenged, or rejected.
A strong audit defense is not simply about providing more information. It is about providing the right information, in the right way, and clearly connecting it to the SR&ED eligibility requirements.
- Insufficient technical or financial documentation
- Gaps or omissions in the original claim
- Information that does not clearly demonstrate SR&ED eligibility
- Inconsistencies between the claim and supporting documentation
- Responses that do not adequately address CRA's questions
- Information submitted outside the required timelines
- Differences of opinion regarding whether activities meet SR&ED eligibility requirements
How Does EVAMAX Support Clients Through an SR&ED Audit?
Whether EVAMAX prepared your original SR&ED claim or you are coming to us after receiving a CRA audit notice, our team can help you navigate the process.
If EVAMAX did not prepare your original claim
If we are hired to defend a claim originally prepared by another taxpayer or representative, we begin by reviewing the information previously submitted to CRA. We use the existing documentation and supporting information to understand the original claim, identify areas of strength and weakness, and build a strong eligibility case. In certain circumstances, we may also be able to rebuild and resubmit portions of the claim if the CRA timeline permits.
If your original submission needs additional information
We identify gaps and omissions in the original submission and work with you to gather, restructure, and prepare the information required by CRA. Our goal is to ensure that the additional documentation and explanations clearly support the SR&ED activities and expenditures being claimed and address CRA's specific questions.
If you need help communicating with CRA
The first step is establishing clear communication with CRA. EVAMAX can help you understand CRA's requests, prepare appropriate responses, coordinate communications, and support you during meetings or discussions with CRA.
If you are unsure how to proceed
Every audit presents different circumstances. We listen to your concerns, review the details of your situation, and provide our insight on the best way to proceed. Our team helps you understand your options so you can make informed decisions throughout the process.
If the audit outcome is not what you expected
An unfavourable audit outcome does not necessarily mean the end of the process. Depending on the circumstances, there may be additional recourse available to defend your SR&ED claim. EVAMAX can assist with available options, which may include requesting additional reviews, filing objections, or pursuing appeals where appropriate.
You shouldn't have to figure out a SR&ED audit on your own.
Contact EVAMAX TodayOur experienced consultants can support you from the initial CRA request through the various stages of the review or audit, helping you understand what is required and ensuring your claim is presented as effectively as possible.
Why Choose EVAMAX for SR&ED Audit Defense?
20+ Years of SR&ED Expertise
EVAMAX has been helping Canadian businesses with SR&ED claims and government incentives since 2003. Our team understands the SR&ED program, CRA requirements, and the audit process. We work to translate your company's technical and financial information into clear, well-supported documentation.
A Proactive Approach
We don't simply respond to CRA requests. We identify potential gaps, clarify supporting information, and help strengthen your position throughout the review process.
Tailored to your Projects
No two SR&ED claims or audits are exactly alike. We take the time to understand your company's circumstances and develop an approach based on your specific claim and CRA's requirements.
Long-Term Support
Our support extends beyond the immediate audit. We provide practical recommendations to help you plan, document, and present your SR&ED activities more effectively, both now and in future fiscal years.
Facing an SR&ED Audit?
Don’t face a CRA review alone.
Whether you have just received a Request for Information, are preparing for a meeting with CRA, need help responding to questions about your claim, or are dealing with an unfavourable audit outcome, EVAMAX can help.
Get help with your SR&ED audit defense today.
Contact EVAMAX TodayWorried about your current claim and need a second opinion? see our services