Tag: E-business

Getting started now will pay off

2024 fiscal cycle and refundable tax credits

Managing your tax obligations isn’t always exciting, but it’s essential to your company’s financial health. It’s already the end of November, and now is the time to take action to benefit quickly from your refundable tax credits, which will strengthen your company’s financial flexibility and make it easier to manage your operations.

For companies with a December 31 fiscal year-end, we strongly encourage you to finalize your technical report before the end of the year to support your claim for tax credits. This will enable you to submit your tax reports early in the year, including the T2 form for the federal government and the CO-17 return for Quebec.

The sooner you get in touch with your accountant and the specialist handling your R&D tax credit claim, the better for your company. It is therefore advisable to send your tax file to your accountant no later than February 15, as the tax advisors’ availability diminishes will be greatly reduced due to their increased workload during this period.

Submitting your tax returns before March 30 will significantly speed up your tax refunds. Late filing, on the other hand, can lead to delays of several months and additional costs, such as substantial interest and penalties.

Proactive management of your tax obligations includes:

– Filing your tax claims within three (3) months of your fiscal year-end (March 30
for companies with a December 31 fiscal year-end)

– Filing and paying your GST-QST tax returns on time

– Managing your D.A.S. reports and payments on time

– Producing your T4 summaries by February 28 (regardless of your fiscal year-end)

In our experience, failure to meet these obligations with revenue agencies raises red flags and can result in technical or tax audits, causing delays of several months in the processing of tax credit refunds.

In short, companies that are diligent in filing their tax returns demonstrate their commitment to rigorous and responsible tax management, which contributes to easier and more productive relationships with revenue agencies, much faster access to tax refunds and lasting financial stability.

About us

R&D Capital is the Canadian expert in the financing of research and development tax credits (SRED), e-business tax credits and multimedia tax credits. Don’t hesitate to contact us. You’ll receive fast, courteous and straightforward service, and within 10 working days you’ll know what financing is available to you. For more information, you can reach us by e-mail at pbinette@rdcapital.ca or at (514) 798-0493, ext. 222. We look forward to helping you realize your projects and ambitions.

Refundable tax credits: get the support you need to make the most of them

We invite you to watch this video by Mr. Marwan Bitar, founding partner of Innoprofits Solutions, who explains the importance of being well-supported in managing refundable tax credits.

Although tax credits can introduce a certain complexity in business management, they represent a financial and development lever that is essential to fully capitalize on. Optimal use of refundable tax credits, including their financing, can play a significant role in the success of your projects and your business.

Enjoy watching!

Interview with Marwan Bitar, founding partner of Innoprofits Solutions

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Calling in the experts:

a smart move to make the most of your R&D tax credits.

We are pleased to present this interview with Pierre Savignac, CEO and Founder of Emergex Subsidies.

Surround yourself with specialists

As you’ll see from listening to this seasoned expert, it’s in your best interest to surround yourself with specialists when it comes to preparing your R&D tax credit claims. That way, you’ll get the most out of your claims, and potentially avoid unnecessary hassles.

In fact, the support of a firm like Emergex combined with R&D Capital’s expertise in financing your refundable tax credits are two essential foundations of a solid tax and financial optimization strategy for your company.

Interview with Pierre Savignac, CEO and Founder of Emergex Subsidies.

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Entrepreneurship: a driving economic force across the country

1.2 million businesses

We all know that entrepreneurship is the main driver of Canada’s economy. As I mentioned in my last post, there are 1.2 million businesses with fewer than 100 employees across the country, and these account for 70% of all private sector jobs in Canada. But when we take a closer look at this data, we also see that the presence of entrepreneurship in the economy varies quite significantly from province to province. Read more here (integrated link)

According to data published by Quebec’s Ministère de l’Économie, de l’Innovation et de l’Énergie, the Prairie provinces have 38 businesses per 1,000 inhabitants, followed by British Columbia at 37, Ontario at 31, the Atlantic provinces at 30, and Quebec at 26.

This data is not an indicator of the quality of entrepreneurship by region in Canada, nor a yardstick for measuring the dynamism of the entrepreneurs themselves, but it does provide a useful and interesting portrait of the presence of businesses in the economic activity of the various Canadian provinces. It may be that some provinces offer fiscal and economic environments that are more conducive to the emergence and creation of businesses.

Quebec

In this respect, based on this data, Quebec certainly has challenges to meet, since it is known that economic prosperity depends to a large extent on the presence and activity of SMEs on its territory. With this in mind, we can only endorse this passage from the Quebec government’s Plan québécois en entrepreneuriat 2022-2025, which stresses the importance for Quebec “(…) to promote the entry of new businesses into the market and encourage growth, particularly through innovation (…)”.

Canada

It’s also worth noting that the number of entrepreneurs in Canada as a whole dropped by 20.3% between 2019 and 2021, due in part to the negative impact of the pandemic. It’s clear from this picture that our entrepreneurs, who represent the country’s main economic lever, need more than ever a fiscal and financial environment that is favorable to their needs, notably our governments. This is even more important in the aftermath of a difficult pandemic, and in a context of persistently high interest rates, where traditional banks are tending to tighten access to credit for SMEs.

About us

R&D Capital is the Canadian expert in the financing of research and development tax credits, e-business tax credits and multimedia tax credits. Don’t hesitate to contact us. You’ll receive fast, courteous and straightforward service, and within 10 working days you’ll know what financing is available to you. For more information, you can reach us by e-mail at pbinette@rdcapital.ca or at (514) 798-0493, ext. 222. We look forward to helping you realize your projects and ambitions.

Supporting our entrepreneurs is vital for the Canadian economy’s competitiveness

The Conference Board of Canada recently published a study on the state of innovation in Canada that is both enlightening and worrying

The report (Innovation Report Card: Benchmarking Canada’s Innovation performance) makes some very positive observations, particularly with regard to the dynamism of our entrepreneurs, but also sounds the alarm about our overall innovation performance.

Let’s start with the bad news

In this ranking, Canada comes 15th overall out of 20 countries examined, based on 21 different indicators. Among the challenges facing our country are a significant lag in the adoption of certain technologies, notably robotics, in the export of new technologies and in the development of mobile applications. In the Conference Board’s assessment, Korea, Switzerland and Singapore take the top three spots. The United States ranks 7th, while Australia, France and Japan lag just behind Canada. So much for the gloomy side of the Conference Board’s report.

On a much more positive note

What I also take from this study, to quote it verbatim, is that “Compared with its peers, Canada is marked by a strong foundation in higher education and a vibrant spirit of entrepreneurialism”. This leads the organization to recommend, among other things, “encouraging new businesses by lowering risk and providing deep support for innovators”. For 20 years now, R&D Capital has been directly supporting innovative companies through financing solutions for their R&D refundable tax credits. I can personally attest to the resilience of our entrepreneurs and the critical importance of supporting them in their projects. The country’s economic future depends on it, when you consider that there are 1.2 million small businesses in Canada – those employing fewer than 100 people – and that they are responsible for almost 70% of all private sector jobs in Canada.