For businesses claiming the Scientific Research &
Experimental Development (SR&ED) investment tax credit, a new
federal tax measure needs to be considered to maximize this tax
credit.
Canada Emergency Wage Subsidy (CEWS)
In response to the COVID-19 pandemic, the Canada Emergency Wage
Subsidy (CEWS) is one of the federal government's financial
support programs to Canadian businesses. The purpose of CEWS is to
help eligible employers keep or rehire employees. However, how does
the CEWS affect SR&ED claims?
In CRA's Guidance issued on February 19, 2021, the
Department of Finance Canada has indicated that assistance received
under the CEWS reduces the amount of remuneration expenses eligible
for other federal tax credits calculated on the same
remuneration.
