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Dartec Inc.

Submission — Dartec Inc.

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Submitter(s): Diez, Angel

Summary: It is my view that Canada's SR&ED tax incentive program (no comment is being made on other programs) may substantially be improved if a few steps are taken as follows:

  1. Greater emphasis should be placed on technological innovation. It is my view that the CRA's SR&ED department should increase the use of consultants and technical advisors, both internal and external, helping to boost the innovation capabilities of Small and Medium Enterprises. The use of external consultants was substantially reduced in 2008 and subsequent years, even though millions of dollars have been given to companies that were not properly assessed due to lack of proper technical advisory support within the CRA.
  2. Creating an effective Technical Support plan for the SR&ED tax incentive program. There is no clear mechanism within CRA today that will help Small and Medium Enterprises towards promoting their potential innovations. While this support mechanism exists on other programs, such as the Industrial Research Assistance Program of the NRC, the connection between them is very loose or non-existent. A support mechanism should be implemented.
  3. Research Integrity. Sanctions should be applicable if the firm carrying out SR&ED clearly misleads its financial supporters with false information. Furthermore, reviews should be carried out every year, even if it is just to touch base with the current development. This will enhance SR&ED integrity.

Full submission: PDF Version