Believe it or not, you could have a better chance of approval with the Tax Court of Canada over CRA audit or CRA appeals.
After you have filed your Notice of Objection, you can wait for a verdict that can take as long as 2 years, or wait only 90 days and then file directly with the Courts.
You can file as Informal Procedure if you don’t mind the $25,000 fiscal year limit. If your denial is substantially above this amount, you will want to consider General Procedure. The Informal Procedure is still court with a real tax court judge, but you don’t have to go through the arduous, and potentially expensive discoveries process.
Whether Informal or General Procedure, you will find the following advantages in Tax Court.
- The Judge looks at your case based upon the “balance of probabilities” which is a much lower bar than CRA uses during audit or appeals.
- The Judge is not a technologist and takes a common sense approach to eligibility.
- The Judge will be familiar with the “the spirit of the legislation”, that is, SR&ED Tax Credit is as an incentive program, whereas CRA often administers SR&ED as a compliance program.
- The Judge will be interested in comparing your work to that which was known in the public domain.
- You can call expert witnesses to testify.
- A judge looks at evidence in a subjective manner – was the evidence provided reasonable enough and consistent enough in order to satisfy the judge.
- The Judge will consider whether the claimant is credible.
If your case is below the Informal Tax Court Threshold ($25,000 ITC per fiscal year), then Bond can handle your case without a litigator.
If your case is above this Threshold, then you’re looking at the General Procedure. Bond has partnered up with Tax Litigators to move your case forward on those cases as well. Bond provides specialty SR&ED Policy guidance, and the litigators push your case through the court system.
Bond starts off by assessing your chances of success. As always, Bond will not lead you down a futile path when your chances to prevail are slim.
If we find that your case has merit, we will provide you with a fair proposal, and we will explain the whole process to you.