What you need to know and How EVAMAX experienced team can HELP:
So you’ve been claiming SR&ED tax credits for a while and are now faced with a CRA review/ audit.
SR&ED Claim Reviews are essential for compliance to ensure the efficiency of the tax system. These reviews often cause moments of frustration and panic. Every Canadian taxpayer gets audited every 3-5 years, so you shouldn’t worry!
While many SR&ED claimants can go unaudited for longer than that, it is fair to expect an audit at some point. It is crucial the taxpayer is prepared and equipped with sufficient resources to successfully go through an audit.
1) Being selected for any kind of audit by CRA does not indicate that the taxpayer is actually suspected of any wrongdoings. It’s just a due diligence procedure on the CRA side.
2) Are you a first-time claimant? Most receive a First Time Claimant Review Advisory (FTCAS) service by CRA. Meaning the claim may be accepted as filed (AAF). During this review, it is important to demonstrate compliance. We support our clients through these common procedures, while our team of experts ensures clients are extensively prepared for this meeting.
3) To begin an audit, the CRA Audits issues the initial request for information (RFI). In most cases, if they receive timely, accurate responses and their inquiries are addressed appropriately, it will result in a completed audit. However, if the CRA auditors request an on-site meeting or issue the subsequent RFIs, there’s no need to worry. We will support you, by attending your meetings with CRA and fully representing your audit defense.
4) If you’ve been audited and your claim has been declined by the CRA, you are not prohibited from applying. If all relevant expenditures, in fact, did occur within the current FY and other FYs under review and in your opinion SR&ED activities took place, it is worth making an application.
5) Often, claims are rejected if enough information is not provided, or the provided information is not presented accurately to convey the claimant’s position, or information is not submitted in a timely manner. There are occasions where there is a difference of opinion between the CRA and the claimants.
This makes the process cumbersome and confusing for claimants.
How does the Team at EVAMAX GROUP support clients through the CRA audit? What do we do differently?
We help clients in different scenarios:
1) If the claim is not submitted by us and we are hired to defend a client during an audit, we work with prior information submitted to the CRA by the taxpayer or their representative. Using this information, we build a strong eligibility case. In some exclusive circumstances, we can re-build and re-submit the claim if time permits. This depends on the timeline arranged between the claimant and CRA.
2) We will listen to your thoughts and concerns and will share our insight on the best way to proceed.
3) The first step is to open communication channels with the CRA.
4) We identify gaps and omissions in the original submission and will collaborate with you to gather, re-structure and prepare responses and generate the additional information required and to provide CRA with the necessary documentation in order to fully match it with eligibility requirements.
5) There are many reasons when the audit outcome is not as expected by the claimant. We not only handle the submissions of information, but we use the several recourses available to defend the SR&ED Claim. For e.g. requesting additional reviews, filing objects or appeals.
6) Each case is different and it’s imperative to have an experienced consultant supporting you through the process.
Our Goal: Our team at EVAMAX is fully committed to provide services that are fully compliant, both technically and financially, with the current CRA requirements, for our valuable clients, taxpayers.
We provide you with up-to-date recommendations on how to better plan and present your work in the SR&ED claim for each fiscal year. Our focus is on delivering long-term financial success with our clients while maintaining a strong relationship with CRA.
If you are facing a SRED Audit and need a second opinion OR want to discuss engaging EVAMAX to help with your Audit defense.Contact EVAMAX Group through email at firstname.lastname@example.org OR call 1-877-711-7733.