General Show how you arrived at the claimed amounts on T661 List of items and amounts claimed, invoices, rationale Provide proof of payment Salaries and Wages Separate SR&ED from non-SR&ED time Need to know what was done and by who for SR&ED Hours claimed for specific activities – weekly increments Materials Rationale Contracts Details of work done, IP ownership

Overhead Cost Proxy method Estimation method - 55% of salaries or wages claimed Easier than Traditional Method Can be more generous than accounting methods Overhead Cost Traditional method Exact accounting method Directly related to conducting SR&ED that would not be incurred if SR&ED was not conducted - incremental Directly attributable to providing premises, facilities or equipment to conduct ..

Payment to specific Canadian corporations and tax-exempt entities, including universities and research institutes, is included. The payer can benefit from the results and receive early notifications but cannot control the work being conducted.

Contract Expenditures SR&ED on your behalf, related to your business and conducted in Canada Taxable suppliers Arm’s length Non-arm's length - individuals are those who collaborate with shared interests or have a family or business relationship

Materials definition All the raw materials, substances, or items that constitute the body of a thing at a specific point in the SR&ED process are eligible for inclusion in your SR&ED expenditures, including items such as: Consumables, like lab supplies and test materials Raw materials used to create prototypes Prototype materials Testing and measurement equipment Materials for systematic experim..

Salaries and wages are one of the eligible expenditure categories that businesses can claim as part of their SR&ED tax credit applications. T4’d Employees Directly engaged in SR&ED Some allowance for first-level supervision Must be paid within 180 days of the end of the tax year Specified Employees Directly engaged in SR&ED Owns is related to someone who owns or owns together with a related pers..