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March, 2010 | |||
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Cast Study: Print Industry | |||
Full Service Printing Company Began Claiming for SR&ED Tax Credits with Northbridge in 2005/2006A printing company, who specializes in screen, digital and offset printing, and who also offers a full array of finishing systems, originally enlisted the help of Northbridge Consultants for their 2005 and 2006 SR&ED claims. The 2005 and 2006 SR&ED claims were submitted at a combined $1M in expenditures. The CRA administered a financial review which resulted in a 90% acceptance rate. The client received $280K in credits/refunds as a result of their efforts combined with Northbridge’s expertise. Accurate Tracking Records and Better Understanding of SR&ED Criteria Lead to Higher Claim Values
Northbridge Consultants worked in conjunction with the client to build a documentation system that easily integrated into their standard business procedures. The documentation tracking system was specifically designed for the client and helps to track the activities eligible for future SR&ED claims. The SR&ED claims submitted over the next two years were significantly larger than previous years due to the availability of accurate records as well as a better understanding of the SR&ED program. Client Continues to Submit High Value Claims – Funding New Initiatives in the CompanyThe client's 2008 claim was submitted at 30% higher than their first claim in 2005. The 2008 claim was subject to a financial and technical review by the CRA and, due to their improved documentation system, the claim was accepted at the full value. The client received over $300K in refunds from the SR&ED program. With the refunds earned over the past 4 years, the client was able to purchase new updated equipment and they have expanded their service offerings. | |||
Testimonial
The first information session where we were informed of the benefits of the SR&ED program piqued our interest but we remained quite sceptical through the initial phases of the process. Due to the technical nature of the program outline we did not think we qualified for the tax credits. Northbridge instilled confidence and handled every aspect of the claims with diligence and professionalism and we now receive healthy annual ITC’s which assist us in improving our operations. Northbridge customer service skills are on par with the best in our industry and it is always refreshing to have an exchange of knowledge when they stop in. We are confident in recommending Northbridge to any organization requiring these types of services.”
Metalfab is a family owned and operated manufacturer of long lasting, high quality custom fire trucks. |
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Employee Spotlight: Max Qasmi
Business Account Manager Max Qasmi has been with Northbridge Consultants since June 2009. He completed his Bachelors Degree in Electrical Engineering at McMaster University in 2001, then subsequently earned his Masters degree in Applied Science and Masters in Business Administration while working in the Photonics industry. He later managed development projects in Digital Signal Processing, Embedded applications and Real-Time systems. In 2009, he also earned his Project Management Professional (PMP) designation. Max utilizes his diverse knowledge base gained over the years to aid clients in identifying and claiming even the most difficult projects. In his free time Max is spotted either practicing martial arts, composing electronic music, or absorbed in deciphering semitic inscriptions, archaeological artifacts and papyri from late antiquity. He is also fond of travel and has visited seventy two cities across North America, Europe and Asia. Max has been able to learn the various forms of the Aramaic alphabet on his own, which he considers to be one of his accomplishments. Furthermore, he has a Green-Belt in Taekwondo and also draws inspiration from the Chinese fighting styles of XingYi Quan. | |||
On the BlogWe are always endeavering to be the first to inform you about recent news on the SR&ED program, the current Canadian business environment, and some general practices to help improve your day-to-day business on our company blog. Some highlight’s from the Northbridge Consultants’ Canadian Business Blog in February include:
Read about these topics and more on our blog. |
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Ask the ExpertsDear Northbridge; - A Northbridge Client Dear Client; Oftentimes, we are asked whether installing new software that was purchased off-the-shelf, or whether implementing improvements to current software or hardware infrastructure count as SR&ED projects – unfortunately this doesn’t count, as there typically aren't technological obstacles that you are trying to solve through systematic investigation. In general, when looking to see whether an IT project is eligible, here are some questions to ask yourself:
All of these areas will be looked at by the CRA reviewers to confirm that what you are claiming does qualify for the SR&ED program. To get more information about whether your IT project qualifies for SR&ED, talk with your account manager. |
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Although we endeavor to ensure timely and accurate information throughout this newsletter, it is not intended to be a definitive analysis of legislation cited, or a substitute for professional advice. Readers are encouraged to seek professional advice when attempting to relate their specific situations to information disclosed within.
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Northbridge’s involvement with the client and with the claim process helped them to better understand the CRA’s criteria for the SR&ED program. They are now able to quickly identify eligible activities and better identify all relevant costs associated with each activity.
“Metal Fab Fire Trucks, Ltd. has been fortunate enough to have Northbridge Consultants, Ltd. as our SR&ED program advisors for over 3 years. Jen Mahon and her team of professional engineers have not only managed our R&D claim submissions but have also provided invaluable ongoing logistical support in terms of time tracking and proper documentation for the CCRA. 
–Gordon GreenPresident, Metalfab Ltd.