Developments: SR&ED Claims: Importance of Business Context

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No claim for SR&ED can be assessed properly without considering the business context in which it is carried out. According to the Canada Revenue Agency (CRA) eligibility should be judged in the context and environment of the particular company and its field of business (IC 86-4R3). For instance, if two companies in the same industry are working on similar R&D projects to overcome a technological challenge, each claim would be assessed in the context of the claimant’s business environment. (Parallel development situations like this are particularly common in “race-to-be-first” industries such as software.)