The Canadian tax system provides credits and incentives for taxpayers who carry out qualifying scientific research and experimental development (SR&ED) work. When claims are made for such credit and incentives, an issue that frequently arises is whether the activities undertaken actually qualify as SR&ED.

The Canada Revenue Agency recently issued a guideline document to assist taxpayers in determining whether the work they are carrying out does or does not qualify for purposes of SR&ED credits and incentives. That guideline document can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/policies-procedures-guidelines/guidelines-eligibility-work-sred-tax-incentives.html.

In the document, the CRA notes that there has been no change to the definition of SR&ED. The new guidelines have been issued to provide simplified explanations of the program requirements, clear breakdowns of what constitutes eligible work, and links to further guidance on both what can be claimed and how such claims need to be supported.