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The computer games industry provides particularly good examples of innovative projects that do meet the requirements of the R&D schemes and also examples of projects which do not.

 No matter how original and inventive the game storylines are, these are not scientific or technological advances. The important criterion is not ‘what’ is produced but ‘how’.

The ICT sector is so fast-moving that further advances overtake new and groundbreaking developments very quickly. What is important is that a project represents an advance at the time of development. New encryption and security techniques are being developed regularly and in many cases give rise to further advances. Even if the technique is quickly rendered redundant it will probably qualify for relief.

The same applies to new search engines using new search methods. A company realized that each object on a game’s screen had to be programmed in respect to its interaction with all the other objects. As the game became more complex, more objects were introduced and the amount of code required rose exponentially. The solution was to programme the properties of each object. When the objects interacted, a separate code was no longer required as the inherent properties produced by the outcomes.

The qualifying expenditure on developing this innovative code qualified for R&D relief. Many advances are in the software field but advances in hardware are not unusual and will qualify for R&D relief if they are designed to overcome a scientific or technological uncertainty. Equally, very small companies dealing in subcontracted work may qualify if the work undertaken is sufficiently innovative, even if the larger contractor’s project does not qualify.

 

Source: CRA (Canada Revenue Agency)

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

 

 

The computer games industry provides particularly good examples of innovative projects that do meet the requirements of the R&D schemes and also examples of projects which do not.

 No matter how original and inventive the game storylines are, these are not scientific or technological advances. The important criterion is not ‘what’ is produced but ‘how’.

The ICT sector is so fast-moving that further advances overtake new and groundbreaking developments very quickly. What is important is that a project represents an advance at the time of development. New encryption and security techniques are being developed regularly and in many cases give rise to further advances. Even if the technique is quickly rendered redundant it will probably qualify for relief.

The same applies to new search engines using new search methods. A company realized that each object on a game’s screen had to be programmed in respect to its interaction with all the other objects. As the game became more complex, more objects were introduced and the amount of code required rose exponentially. The solution was to programme the properties of each object. When the objects interacted, a separate code was no longer required as the inherent properties produced by the outcomes.

The qualifying expenditure on developing this innovative code qualified for R&D relief. Many advances are in the software field but advances in hardware are not unusual and will qualify for R&D relief if they are designed to overcome a scientific or technological uncertainty. Equally, very small companies dealing in subcontracted work may qualify if the work undertaken is sufficiently innovative, even if the larger contractor’s project does not qualify.

 

Source: CRA (Canada Revenue Agency)

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

 

 

A company created a cladding system which had the appearance of ‘normal’ brickwork but incorporated the capacity for off-site fabrication, improved fire protection and suitability to fast-track production.

Mechanical fixing rather than wet mortar provided strength and durability, which together with the capacity to construct in all weather conditions provided significant cost savings.

The uncertainty of the materials in the cladding system and the technological uncertainties surrounding fixing were qualifying R&D projects. The technological uncertainties surrounding the mechanisms to achieve this had to be overcome before the concept proved viable, making this a qualifying project.

A further example of innovation is a company which used wood as part of a project. Traditionally the wood needed to be of a certain age but the company was able to modify a coating so that younger and cheaper wood could be used while still having the required qualities.

Significantly this development was a small element of an overall conventional project. Only after discussion with the site foreman did the company directors realize that the modification and application of the coating qualified for R&D relief. Another company specialized in constructing laboratories.

To combat contamination the company designed some new buildings with removable sections. Exterior walls could be slid away and a unit could be removed in total and replaced by a new unit before the exterior walls were slid back into place.

 

Source: CRA (Canada Revenue Agency)

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

 

 

Creating a new drug, up to and including Phase III trials, to more effectively and safely reduce the risk of a stroke, is a qualifying project.

The salaries of both the scientists and their laboratory assistants doing this hands-on R&D can qualify. However, their work to achieve important regulatory FDA approvals does not qualify, because any uncertainty in achieving these is in regulation, not science or technology.

However, where a competitor reverse-engineers this product, for markets not covered by any intellectual property protection, this does not qualify. The advance in science or technology worldwide has already been overcome and the competitor’s uncertainty is not an uncertainty at the industry sector level, rather an uncertainty in their own state of knowledge.

A project for newly-diagnosed diabetes patients to provide details of their blood sugar to the hospital via a simple internet web form is innovative. It allows the hospital to monitor their condition in real time and advise the patient immediately on how best to manage their condition.

A project to create a new artificial bladder system for patients with urinary difficulties, substantially more comfortable, safe and leak-proof than any other designed, qualifies as R&D. The advance sought and uncertainty addressed is how to bio-engineer the materials to achieve these qualities, enabling safe insertion and avoiding rejection.

Although this achieves an advance in patient care, any uncertainty associated with the patient’s use of the software is not an uncertainty in the technology itself. As such, this is not a qualifying R&D project.

The design of the web-based system would be obvious to a competent professional.

 

Source: CRA (Canada Revenue Agency)

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

 

 

A project is commissioned to produce a prototype (not to be sold) that will test a design for a new eco-petrol engine and exhaust. The goal is to achieve a substantial reduction in eco-unfriendly emissions with a performance at least as good as a comparable engine.

On the other hand, an innovative in-bus eco-waste bin, where the innovation is in the attractive and appealing presentation of different compartments designed specifically to encourage the usage and promotion of recycling, does not qualify. The uncertainty of persuading people to put their litter in the bin is in the field of social science, not in the field of technology. The technology required would be obvious to a competent engineer.

This appears to competent professional engineers to offer hope of achieving a real advance by way of an improvement in vehicle technology. The uncertainty in science and technology is whether this substantial reduction with the comparable performance sought is possible. Even if unsuccessful, this and the construction of the prototype is still a qualifying R&D project.

A project for a new standard bus engine which is substantially lighter, cheaper, or faster to produce than any currently available or known to be possible (for example patented), while maintaining performance levels (for example in power, robustness, and life) can all qualify as R&D. However, a minor and routine adjustment such as one to incorporate slightly better spark plugs, already designed and used in another vehicle, would not qualify.

 

Source: CRA (Canada Revenue Agency)

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

 

 

A company, specializing in agricultural engineering, used a probe to provide information on the quality of cereals which were transported in sacking. Measurements could only be taken at the top, as anywhere else would damage the sacking. This, however, did not produce representative samples.

A further development arose when the company received orders from Eastern European countries, where the material did not react in the required way in sub-zero temperatures. The company undertook further research to amend the material to meet the requirements of the extreme conditions. The additional expenditure on manufacturing the material was not qualifying but the research costs of amending the material to meet ‘cold weather’ issues again qualified.

The company designed a material which allowed a probe to enter the sacking and which reverted to a sealed surface once the probe was removed. Although the market for this material was limited, it proved extremely successful in overseas markets. For R&D purposes the company incurred qualifying

expenditure in overcoming the uncertainty in developing the material.

In many projects involving advanced materials, the scientific and/or technological uncertainty can be readily identified. However, the use of ‘new’ materials in existing processes may also qualify if it can be shown that the outcome has or was intended to significantly improve efficiency, for example, significantly reduce waste.

Source: CRA (Canada Revenue Agency)

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.

 

 

 

A project to develop a new feed or to grow crops that have substantially increased vitamin content, produce better or more reliable yields, or are more tolerant to weather conditions and resistant to blight, would be qualifying R&D.

Creating an innovative chilled food container that provides a substantially longer shelf life than currently available, would also qualify. The scientific or technological uncertainties to be addressed are in the interactions between the food, gas content and container to keep the food fresh for longer. By contrast, the work in dealing with authorities to comply with extended use-by date regulation would not qualify.

The scientific and technological advance is in resolving the uncertainty in the creation of a new improved strain. However, work to protect this new strain with plant breeding rights does not qualify as it is regulatory, not scientific or technological activity. Not all innovation qualifies. A project to create a food container where the innovation lies in the artistic design or presentation of the packaging to encourage prospective customer purchases would not qualify.

The uncertainty here is in design or marketing, not in science or technology. Not every change advances overall knowledge and capability. Creating new Vitamin C rich confectionery simply by adding Vitamin C to the ingredients does not qualify. A competent professional could carry out the process without uncertainty in either combining the ingredients or their reaction in the body when consumed.

 

Source: CRA (Canada Revenue Agency)

 

For assistance in preparing your submission and to position your application for approval contact EVAMAX Group to help you with the process. You may also email us at info@evamax.com or call 1-877-711-7733.