FREQUENTLY ASKED QUESTIONS

E.I. Refunds

What is the cost of getting an E.I. Refund?
We charge a 30% contingency fee. If we don’t get you a refund, you don’t pay. As simple as that.

Am I eligible for an E.I. Refund?
If you work for a relative who owns 50% or more of the business, then you are likely not eligible for EI and are eligible for a refund of up to $8,000.

How long does it take to get an E.I. Refund?
We will need just over an hour of your time. The rest of the work is up to us. The total process takes 3-4 months from start to finish.

What information must I provide to get an E.I. Refund?
Copies of your T4 slips for the past three years, your current address and a few details about the nature of your job.

What happens if I am not eligible for an E.I. Refund?
Nothing. You keep paying like always, except now you are correct in the assumption that you are paying into a program that will be there to support you if you need it.

What happens if I just stop paying my EI contributions?
Without a letter from the Government you may subject yourself to severe assessment, penalties and interest.

SR & ED Claims

I was asked to consider claiming tax credits for "SR & ED". What is SR & ED?
It stands for "Scientific Research and Experimental Development". It's a government incentive program to encourage Canadian businesses to develop new or improved products or processes. The federal government pays out almost one and half billion dollars annually under this program. It is estimated that for every dollar paid, more than two dollars go unclaimed because companies are not aware of their eligibility.

Isn't any development process "experimental"?
In a sense, yes. But what this program is trying to encourage is development that advances the technology base of Canadian businesses and makes them more competitive in the global marketplace. The work has to meet these criteria:

1. it seeks a technological advance
2. it attempts to resolve a technological uncertainty; and
3. it involves systematic investigation by appropriately qualified people.

Can't our own accountants prepare the SR & ED claim?
Typically, no. The SR & ED claim relies on the technical description of eligible work.

How do I obtain the maximum 35% refundable SR & ED Federal Tax credit?
As long as you are a Canadian Controlled Private Corporation (CCPC) with a net income of less than $500,000, then you qualify for the full 35% refund.

How does the SR & ED fee structure work?
We work on a contingency basis. If we don’t get you a refund, you don’t pay.

How long will it take to process my claim?
Typically, 6-8 months from date of submission.

How much can I or my company get back?
Average companies receive in excess of $96,000 per year.

How much time do I have to make a claim?
18 months from your fiscal year-end.

What happens if my SR & ED projects are incomplete by year-end?
Then we claim for any activities/costs incurred so far. Often companies' SR & ED will straddle several years.

Will my competitors find out about my SR & ED?
Only if you tell them. SR & ED claims and our work is kept strictly confidential.