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Technology Scientific Ltd.

Submission — Technology Scientific Ltd.

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Submitter(s): Petela, Ryszard

Summary: The present submission shares comments and observations on the SR&ED for self-employing small research companies in order to rescue their existence. The submission addresses the companies which conduct scientific research and the obtained research results are available or published without honorarium paid to the researcher. To encourage such activity the Income Tax Credit (ITC) is expected to ensure a sufficient researcher's net income over the cost of accounting and other expenditures. The scientific activity of the Technology Scientific Ltd. is the example used in the considerations. Unfortunately, the present complex Regulations regarding calculation of ITC does not encourage continuation of company research, and instead they create rather excessive bureaucracy which results in the growth of accounting cost reaching outraging and unfair level in comparison to the SR&ED claimed cost of the research and to the value of the research achievements. Therefore, there is proposed the revision of the present Regulations and some main changes addressed the small self-employing companies conducting theoretical basic research, are suggested:

  1. The annulling of the proxy amount cap.
  2. The creation of a SR&ED unit (established e.g. at the Canada Revenue Agency) which would prepare for the scientist the SR&ED claim for free, thus executing the Regulations complicated by the SR&ED itself.
  3. At least, the mentioned unit could prepare the claim for the scientist who would pay only a reasonable fee.
  4. The developing of a system of awarding of the outstanding research results conducted within SR&ED.

Full submission: PDF Version