If you got 100% on the quiz for all the key questions, chances are your project has a good foundation for an SR&ED claim. That doesn’t guarantee approval, but it means you’re asking the right kinds of questions and working in the right space.
If your answers were NO (or ‘incorrect’) on one or more, don’t be discouraged. This exercise is about clarity, not judgment. Many businesses discover that only certain projects—or even just parts of projects—fit the SR&ED criteria.
What To Do Next
Focus on the gaps. Look closely at where your answers didn’t support a SR&ED claim. If it was around uncertainty, ask: Was this truly a routine task, or did we face unexpected technical challenges we didn’t capture?
Build better habits. If you struggled to say “Yes” to systematic investigation, it may mean your team isn’t documenting experiments clearly enough. That’s fixable—and we’ll cover how in the documentation lessons ahead.
Seek clarity early. If you’re not sure about a project, don’t wait until tax time, or just assume it’s a ‘no’. Talk with your accountant and with an SR&ED advisor to confirm what’s worth tracking. CRA also has a Pre-Claim Consultation process where they will review up to 3 projects per tax yearbefore you submit your claim. (See the “Working with CRA” section below).
Remember: even if one project doesn’t qualify, another might. The goal is to understand the criteria so you can spot qualifying work as it happens, not in hindsight.
Ownership vs. Control
A common question is whether a company needs to be Canadian-owned to file for SR&ED. The answer is no.
Any Canadian Taxpayer
Any corporation, individual, or partnership can claim SR&ED if the work was performed in Canada.
Canadian-Controlled Private Corporations
CCPC’s get the enhanced refundable rate (up to 35% on eligible expenditures).
Non-CCPC’s
Foreign-owned corporations with Canadian subsidiaries, can still claim SR&ED but usually at the standard 15% rate.
KEY TAKEAWAYS
The key takeaway: ownership doesn’t decide eligibility—control does. But the type of control affects how much you can recover. Rates you can claim will effect your refund amount and cash flow planning – check with your accountant.
