Latest news with #SR&ED
Yahoo
27-05-2025
- Business
- Yahoo
It's Time for Canada to Buy Canadian: Avanti CEO Calls for Procurement Reform to Fuel Innovation in Canada
CALGARY, AB, May 27, 2025 /CNW/ - In the face of global economic uncertainty, David Owen Cord, CEO of Avanti Software, is urging Canadian government agencies to prioritize home-grown technology in their procurement policies. "Canada pours billions into R&D incentives like SR&ED—$4.5 billion in 2024 alone1," Owen Cord explains. "But without adoption, that investment stops short of making an impact. Public institutions should be our industry's first customers, not its last." Closing the Innovation Loop Despite generous funding, government entities continue to procure foreign software, breaking the cycle of domestic investment and reinvestment. Avanti's solution is simple: Canada's innovation cycle begins with government R&D funding through programs like SR&ED. Canadian companies turn that support into real solutions. When public agencies adopt these technologies, they help keep jobs and revenue in Canada—generating tax dollars that fund future innovation and growth. Mandating that a portion of public funding be reinvested in Canadian tech creates a multiplier effect, where each reinvested dollar fuels a new cycle of economic activity here at home. But when government agencies purchase foreign solutions, they disrupt that cycle, leaking potential tax revenue and job growth out of the country. In the long run, Canadians pay the price. The United States recognized this long ago. Enacted in 1933, the Buy American Act (BAA) requires the U.S. government to prioritize the purchase of goods and services made in the United States over foreign-made alternatives. Canada should be no less ambitious when it comes to supporting its own innovators. A National Opportunity, Starting Locally Just recently, Mayor Olivia Chow announced that the City of Toronto is launching a "Love Local" campaign, committing to put Canadian industry first when it comes to procurement. She called on all three levels of government to unite as Team Canada. And yet, Avanti has lost business to U.S. vendors in four Canadian municipalities in just the past few months: Country of Oxford, Thompson Nicola Regional District, Municipality of the County of Kings, and Lac La Biche County. If a major city like Toronto can take this kind of stand, why can't smaller levels of government follow suit? "When government agencies buy Canadian," Owen Cord emphasizes, "we create jobs, secure our data, and ensure that R&D dollars generate real economic growth right here at home." About Avanti Software Avanti Software is a proudly Canadian-owned and operated company, with all employees based in Canada. Avanti is a leading Canadian HCM provider, offering highly configurable Canadian payroll and people management software, serving clients from coast to coast. With over four decades of experience, Avanti understands the unique challenges Canadian businesses face. For more information, visit 1 SOURCE Avanti Software View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
SRJ Chartered Professional Accountants Empower Canadian Startups to Maximize SR&ED Tax Credits and Fuel Innovation
TORONTO, ON / / May 21, 2025 / As Canadian startups continue to push the boundaries of innovation, SRJ Chartered Professional Accountants (SRJCA) is helping them fuel that momentum by unlocking one of the country's most powerful funding tools: the SR&ED (Scientific Research and Experimental Development) tax credit program. Designed to reward companies investing in research and development, the SR&ED program can return up to 35% of qualifying R&D expenditures-even for pre-revenue startups. Yet, many innovative businesses fail to claim the full benefit due to complex eligibility criteria and documentation requirements. SRJCA is bridging that gap. With specialized experience in tech, engineering, and healthcare, SRJ Chartered Professional Accountants supports startups by identifying hidden opportunities in their development processes and simplifying the claims process from end to end. "We make SR&ED accessible, not intimidating," said Shayan Rashid, Partner at SRJCA. "Our mission is to help founders stay focused on building their product, while we ensure they get every dollar they deserve." Helping Startups Reclaim Capital and Extend Their Runway From software coding and product prototyping to failed experiments and process improvements, many day-to-day startup activities may qualify for SR&ED-but often go unclaimed. SRJCA helps founders: Uncover eligible R&D efforts Compile compliant technical and financial documentation Maximize claim value with confidence in CRA audits Avoid missed deadlines and costly errors Real Funding, Not Just Tax Deductions For Canadian-controlled private corporations (CCPCs), the SR&ED credit is often refundable-meaning startups can receive a cash infusion directly, rather than waiting to turn a profit. In an ecosystem where cash flow can make or break innovation, SRJCA's personalized, startup-friendly services offer a strategic edge for founders looking to grow. About SRJ Chartered Professional Accountants SRJCA is a leading Canadian accounting firm based in Toronto, specializing in tax advisory, assurance, and SR&ED consulting for small businesses and high-growth startups. With a team of seasoned professionals and a reputation for hands-on client service, SRJCA is committed to helping innovators access the financial tools they need to succeed. Startups looking to learn more or begin their SR&ED journey can visit for resources and free consultations. Media Contact:Company Name: SRJ Chartered Professional AccountantsContact Person: Shayan RashidEmail: info@ SOURCE: SRJ Chartered Professional Accountants View the original press release on ACCESS Newswire
Yahoo
15-05-2025
- Business
- Yahoo
Opinion: Ottawa needs a new industrial innovation policy
By John Lester Too many Canadian innovators sell their intellectual property to foreigners rather than commercialize their inventions in this country. That's bad for Canadian productivity. Ottawa should: move some of its support for R&D over to commercialization and scale-up, improve access to risk capital for small and medium-sized enterprises (SMEs) that innovate, and reduce taxes on successful innovation. Support for R&D performed by SMEs is currently too generous. Federal and provincial tax credits reduce firms' cost of performing R&D almost 40 per cent. And about 3,000 of the 17,000 firms claiming tax credits also get financial support from the federal government's Industrial Research Assistance Program (IRAP). That double dip raises their average subsidy rate to a staggering 65 per cent. The fiscal cost of IRAP is approximately $400 million — on top of about $2.1 billion for the Scientific Research and Experimental Development (SR&ED) program for SMEs. R&D creates knowledge that has effects extending beyond the firm performing it, so a well-designed R&D subsidy program could make Canadians richer. But, as I show in a recent paper, topping up federal and provincial tax credits with IRAP subsidies actually makes Canadians poorer. The high subsidy rates reduce the hurdle rate for investment, which encourages entrepreneurs to undertake some projects that have very low commercial value — which means IRAP support fails a benefit-cost test. Even worse, IRAP's business model results in administrative expenses that are about 15 per cent of the financial assistance provided to firms. The corresponding figure for SR&ED is about 3 percent. The social costs arising from investing in projects with low commercial value and high administrative expenses are about 40 per cent larger than the spillover benefits from the new knowledge created. Encouraging projects with a minus 40 per cent return is a serious waste of public money. IRAP's mandate is to create wealth. Ottawa should restructure it to support commercialization and scale-up rather than R&D. IRAP's knowledgeable Industrial Technology Advisors are well-placed to identify promising inventions. IRAP could authorize financial assistance that firms would repay as their commercialization generated profits, thus substantially reducing the program's net fiscal cost. Providing money only to Canadian firms and making them pay it back immediately if they sell to foreigners would encourage keeping intellectual property in Canada. The federal Liberals' election platform contained two new initiatives to improve small innovative firms' access to risk capital: flow-through shares and increased funding for venture capital. Firms performing R&D can't deduct their expenses until they're profitable. Issuing shares to people or businesses that do have taxable income they can deduct such expenses against is a way to realize the assistance right away. But because most purchasers of flow-through shares face a higher tax rate than SMEs, they cost governments more than if firms were able to deduct expenses as they are incurred. And the benefit to firms is eroded by the costs of setting up and selling the shares. A better approach would be a tax credit for investors in innovative startups. This would help fill a gap in Canada's risk capital market at the seed stage and in the lower tier of venture capital (VC) — deals worth up to $5 million. In addition to eliminating the costs associated with shares, a tax credit would attract more capital from sophisticated investors, who often provide advice as well as money. The Liberals also proposed to increase funding for the VC activities of the Business Development Bank, which would be helpful if focused on the higher tier of VC financing — deals of $20 million and up. The dominance of U.S. suppliers in this tier means many smaller firms either sell their IP in the U.S. or go there to commercialize and scale up. Finally, the rewards to successful commercialization in Canada need to be higher. The Trudeau government's announced but not yet implemented Canadian Entrepreneurs' Incentive, which cuts capital gains tax on the sale of shares in innovative SMEs, is a good idea but does not go far enough. Taxing capital gains earned on the sale of shares amounts to double taxation. Innovations increase expected profits and raise the market value of an enterprise, which gives rise to a capital gain on the sale of shares. But these profits are also subject to tax when distributed as dividends. So the effect is double taxation. Opinion: Here's one growth problem we can fix without money Opinion: Resources, yes, but don't give up on the knowledge economy just yet The federal government should therefore gradually eliminate capital gains tax on shares that R&D-performing startups sell to Canadian residents. To keep the focus on successful firms, it should finance the initiative by phasing out the special lower corporate income tax rate SMEs pay. John Lester, fellow-in-residence at the C.D. Howe Institute, is an executive fellow at the School of Public Policy, University of Calgary. Sign in to access your portfolio
Cision Canada
30-04-2025
- Business
- Cision Canada
SRJ Chartered Professional Accountants Welcomes New Associate Partners to Strengthen SR&ED and Corporate Tax Services
TORONTO, April 30, 2025 /CNW/ - SRJ Chartered Professional Accountants (SRJ CPA) is proud to announce the addition of two esteemed professionals, Tracie Heier and Tabish Bhatti, as Partners. This strategic expansion underscores SRJ's commitment to enhancing its corporate tax and Scientific Research and Experimental Development (SR&ED) services across Canada, helping businesses navigate tax complexities while maximizing available financial incentives. With decades of combined expertise, Tracie and Tabish bring a wealth of knowledge to the firm. Tracie's extensive background in corporate tax positions SRJ to better serve businesses navigating complex tax landscapes. Tabish's focus on SR&ED will play a pivotal role in assisting Canadian businesses in maximizing innovation-driven tax incentives, making it easier for companies to secure valuable funding through government grants and incentives, including the SR&ED program. Tracie Heier is a leading expert in cloud accounting and corporate tax. Based in Saskatchewan, Tracie will spearhead SRJ's expansion across the Western Canadian markets, ensuring businesses in the region benefit from seamless, technology-driven financial solutions. Tabish Bhatti is an authority in the SR&ED landscape, bringing extensive experience across diversified industries. As the leader of SRJ's SR&ED division, Tabish will focus on expanding services to sectors including software/IT, pharmaceuticals, medical practices, engineering firms, and software development. With a growing portfolio of 2,000+ clients and having put over $10 million back into clients' pockets, SRJ CPA is rapidly becoming a trusted name in Canadian accounting and advisory services. "Tracie and Tabish's combined expertise enhances our ability to help businesses across Canada secure crucial tax credits and focus on what matters most: growth and innovation." said Shayan Rashid, CEO and managing partner at SRJ CPA. Expanding Across Canada with a Focus on Innovation and Compliance The appointment of Tracie and Tabish comes at a time when SRJ CPA is experiencing significant growth, driven by increasing demand for specialized tax advisory and innovation funding solutions. About SRJ Chartered Professional Accountants SRJ Chartered Professional Accountants is a leading Canadian accounting and advisory firm offering corporate tax solutions, SR&ED claims services, cloud bookkeeping, and financial consulting. Dedicated to helping businesses maximize profitability and innovation opportunities, SRJ CPA continues to set the standard for excellence in client service and financial solutions.
Calgary Herald
25-04-2025
- Business
- Calgary Herald
What the tech sector wants from the federal election as Canada faces 'perfect storm' for foreign takeovers
Article content Canada's innovation and productivity woes are no secret. A report by The Conference Board of Canada found the country placed 15th out of 20 advanced economies when it comes to innovation performance in 2024, while a report the same year from a TD Economics report noted business sector productivity has failed to grow at all since 2019. Both the Liberal and Conservative parties have promised a combination of smarter investment and tax policy and more efficient government as ways of helping the country improve its economic performance, but what does the technology sector itself want? Here's what they say is needed to establish Canada as a force in the digital age. Article content Article content Article content Article content The belief that Canada's tax system needs to be more competitive, overall, to spur investment in innovation is widely held in the tech sector. Article content After the Liberals proposed a capital gains tax hike in 2022, Canada's tech industry vocally campaigned Ottawa to scrap the idea. High tax rates and complex regulations 'deter investment, drive businesses to relocate, and stifle innovation,' said the Canadian Venture Capital Association (CVCA), a private capital sector lobby group that represents over 350 firms. In one of his early moves after taking over as prime minister, Mark Carney cancelled the unpopular increase ahead of the federal election. Article content The CVCA is proposing further measures. It recommends that Ottawa temporarily reduce the capital gains tax inclusion rate from 50 per cent to 25 per cent for investments into eligible Canadian businesses for a period of three to five years to stimulate 'productive private investment,' it said in an April 2025 white paper. Article content Article content Certain programs, such as Canada's Scientific Research and Experimental Development (SR&ED) tax credit, designed to incentivize businesses to conduct R&D in Canada, should be modernized 'to reward innovation and commercialization of Canadian ideas' and support Canadian companies, the Canadian Council of Innovators (CCI), a tech lobby group that represents 150 Canadian companies. The CVCA suggest this could be achieved by raising annual expenditure limits and taxable capital thresholds. Article content Article content Some tech executives and advocacy groups have endorsed shedding underperforming government programs and streamlining agencies. Article content In February, a coalition of tech founders and leaders launched Build Canada — a platform for publishing policy proposals. In one memo, Daniel Eberhard, the founder and CEO of fintech Koho Financial Inc., advocated for a leaner and more effective federal civil service that would slash 110,000 public sector jobs and mandate and publish 'department performance metrics and targets for all federal civil services.' A number of business leaders supported the idea, including Shopify Inc.'s head of engineering, Farhan Thawar; WIND Mobile co-founder Brice Scheschuk; and CIBC's head of innovation banking, Mark McQueen.
