Services – SR&ED Audit Defence
Have Canada’s top SR&ED experts defend your claim
ELC Consulting has a highly experienced and highly recommended Audit Defense Practice. Companies that have self-filed SR&ED claims or have filed with the assistance of an accounting firm turn to ELC when they receive notification from the CRA that their SR&ED claim is under review. We are the leading provider of SR&ED audit defense services.
For a set fee, ELC will provide a comprehensive technical and financial defense of a company’s already-submitted SR&ED claim. We identify the reasons the claim was selected for review and work to address those deficiencies. Once a claim is selected for review, the entire claim will undergo CRA scrutiny, so preparing the entire claim and supporting materials is crucial to place the customer in the strongest possible audit defense position.
For a set fee, ELC will provide a comprehensive technical and financial defense of a company’s already-submitted SR&ED claim.
We determine why the claim was selected for review and then work to address those issues. Once a claim is under review, it will be thoroughly examined by the CRA, so it is essential to prepare the entire claim and all supporting materials to ensure the customer is in the strongest possible position for the audit defense.
The core of any SR&ED claim, and therefore the primary focus of our defense efforts, is the technical merit of the claim’s projects. We collaborate closely with the client to pinpoint and reinforce the technological challenges and advancements within the projects. The CRA Research and Technology Advisor (RTA) will want to hear directly from a member of the client’s technical team why a particular project qualifies as SR&ED work, in the client's own words. ELC works diligently to refine the project descriptions, clearly distinguishing SR&ED work from routine engineering. We identify the most suitable client team member to convey the "Why this project is SR&ED" message, and then we coach that person on how to effectively present the project description to the CRA.
Once we are confident in the technical aspects of the claim, we will meticulously review and prepare the financial components of the SR&ED claim for review. Frequently, claims are submitted with financial errors or deficiencies that do not adhere to SR&ED regulations. We collaborate with the customer to correct these errors and self-file the necessary corrections with the CRA before the SR&ED audit. These proactive corrections can positively influence the review process and improve the treatment we receive from the CRA during the audit. We then finalize the financial preparations by compiling a comprehensive package that includes T4s, timesheets, SR&ED practitioner roles and responsibilities, and any other relevant materials, such as itemized IRAP and/or CEWS government assistance deductions.
We attend the review meeting with the customer and actively participate in the audit defense. Our involvement extends through to the receipt of, and response to, the government’s 30-day letter, which contains their settlement offer. Our goal is to secure the full amount (or more) of the SR&ED claim, ideally at 100 cents on the dollar.