Canada: Research credit (SR&ED) updated guidance

Canada: Research credit (SR&ED) updated guidance

The Canada Revenue Agency (CRA) may have softened its position on "shop-floor" scientific research and experimental development (SR&ED), as signaled by recent revisions to a CRA guidance document.

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Among other changes, the CRA has reduced the emphasis on the term "scientific method," and has placed increasing importance back on technological uncertainty.

The guidance document also notes that documentation will continue to play an important role in determining whether certain work is eligible for SR&ED investment tax credits.

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