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Pratt & Whitney Canada

Submission — Pratt & Whitney Canada

Important note: The content of submissions and summaries is the sole responsibility of the person and / or organization having made a submission. The posting of this content does not indicate that the Panel supports or endorses it. Submissions and summaries are posted in the language provided without modification.

Submitter(s): Bertrand, J. Richard

Summary: The SR&ED tax credit program does not specifically encourage investment since it is a credit on money already spent. One has to invest first in R&D to potentially benefit from the tax credit. There is the risk that the company does not qualify for the credit on technical merit of the project or over its financial situation and cash flow. The SR&ED tax credit program may not be accessible to SMEs which have difficulty to fund the R&D project initially; this cripples a little their innovation supply chain.

We applaud the government for its public consultation initiatives in wanting to look for ways to stimulate innovation further. The number of countries providing tax incentives in one form or another has been increasing significantly over the years. We are of the view that for Canada to stay competitive, the government must provide a supportive business environment which promotes and fosters innovation. In the following pages we will provide our views on the role of the SR&ED Program and recommendations for enhancements. In so doing we will, at the same time, provide some answers to the key questions asked in the SR&ED section of the Expert Panel Consultation Paper.

Full submission: PDF Version