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SR&ED

New Form T661 and Guide
On November 10, 2008, a new version of Form T661 and the Guide to Form T661 was released. The intent of the changes focuses on making SR&ED claims easier to file. However, there is now more onus on the taxpayer to provide sufficient and accurate information to support the SR&ED claim.

Following is a summary of the main changes:

Line descriptions were rewritten with plain language to simplify the requirements.
Legislative and policy references were removed from the form. Instead, reference is made to the guide that now contains line-by-line explanations for each line of the form.
“Part 2 – Project Information” was completely restructured.The previous free-flowing questions have been replaced with more clear, concise and direct questions and check boxes. These questions are intentionally worded to encourage shorter and more direct responses and the number of words permitted is limited to 350 or 700.
The financial sections were reorganized for a more logical flow and all former schedules (A to F) were removed, or incorporated back into the body of the form.
Two new lines, 307 and 309 were added for salary, or wages for SR&ED performed outside Canada after February 25, 2008.

The new version of Form T661 is effective as of the date of publication and can be used immediately. CRA will accept the new or old version of the form for tax years ending on or before December 31, 2008. For tax years ending after December 31, 2008, only the new form will be accepted.

See the SR&ED website under “What’s new” for more information. Here, you will also find a “clickable” Form T661 (where you can click on a line number and it takes you to the appropriate explanation in the Guide) and an example of a properly completed Form T661.

For more information on how MNP can help maximize your SR&ED investment tax credits, call Ryan Mackiewich, SR&ED Practice Leader at 1.877.766.9735.

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