SR&ED Deadline Extension due to COVID-19

Most SR&ED reporting deadlines have been extended from June 30, 2021, to September 1, 2021.

Authored by Earl Viner, H.B.A., LL.B., our vital SR&ED provider and President of Viner R & D Tax Specialists.

The Scientific Research and Experimental Development (SR&ED) Program offers tax incentives to Canadian businesses that conduct research and development.  The standard Federal deadline for this program is 18 months following the corporate tax year-end. Due to COVID-19 corporate tax extensions for year-ends from November 30, 2019, to February 29, 2020, extending to September 1, 2020, the standard 18-month SR&ED deadline has also been extended. While most tax software continues to report the pre-COVID-19 deadlines, the CRA have published extended filing deadlines for most claimants, as a part of their COVID-19 measures. For corporations filing claims for December 31, 2019, the SR&ED filing deadline has been extended from June 30, 2021, to September 1, 2021.   

Three important points to note:

  1. Filing deadlines for corporations with tax years ending from November 30, 2019, to February 29, 2020, were extended to September 1st, 2020, which translates into a SR&ED claim drop-dead filing date of September 1st, 2021.
  2. The filing extension is not applicable to British Columbia and Nova Scotia. Thus, claimants with SR&ED claims in these provinces are still subject to the 18 month drop-dead filing deadline.
  3. It is recommended and optimal to prepare SR&ED claims in a timely manner (well in advance of the drop-dead date), such that descriptions and records are prepared prior to the potential loss of employees crucial to the technical aspects of the claim, and while the records are still current and easily accessible in the company’s records.   

If you have any questions about the SR&ED extension, or to inquire if your business may qualify for SR&ED tax incentives, please reach out to your Bateman MacKay Business Advisor.

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