Timely identification of Experimental Development projects generates immediate benefits for any company performing SR&ED work in Canada. Employees involved in a newly identified SR&ED project become aware that it is progressing distinct from or in conjunction with other work. This facilitates not only the timely filing of the claim itself but also the prompt collection of the appropriate expenditures and the documentation necessary to support the project.
Collecting contemporaneous documentation is more important than ever for supporting SR&ED claims, especially for Experimental Development projects. Many Experimental Development projects arise when obstacles are identified in attempts to improve or create a new process, product, device or material. (This is in contrast to Applied Research projects, primarily in search of scientific knowledge with a practical application in view, which lend themselves to up-front planning that can result in preparation of some of the requisite contemporaneous documentation, such as project planning documents, as a matter of course.)
This edition of Developments outlines three initiatives that promote early identification of Experimental Development projects, enabling the effective collection of expenditures and supporting documentation.