If you’re claiming SR&ED, it’s not a matter of if you’ll be reviewed—it’s when.
CRA reviews SR&ED claims just like any other part of the tax system, and every company should expect an audit roughly once every four to five years. Let’s look at the types of SR&ED reviews:
This is a friendly “orientation audit” where CRA walks you through what qualifies, what doesn’t, and how to improve future claims.
CRA simply reads through your claim, lets you know they’ve done so, and that they’ve elected not to audit the claim and verify eligibility. They may approve your claim as-is or ask for small clarifications or additional information.
CRA will review the financial aspects of your claim but don’t assess the technical aspect of your work (whether your work meets the SR&ED criteria).
This is most detailed audit, where CRA examines both your technical eligibility and your financial accuracy. They may interview team members or request more supporting documents.
In addition to preparing everything we’ve been talking about in this course, ask yourself:
Official Guidance from CRA
Here’s what CRA has to say about their audit process:
Check the official CRA page here: SR&ED Review Process: A Guide for Claimants
