6 worked SR&ED Claim Preparation case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to sr&ed claim preparation work, not a specific client's file.
Case Study 1 · CRA review defended
$19,000 Reassessment Reduced To Nil On Review — Late-Documented Claimant, Barrie
Client: A claimant whose project records were written after the work · Where: Barrie, Ontario · Engagement: 3 weeks, fixed fee
Reassessment reduced toNil
Tax protected$19,000
Prior filingsUndisturbed
The situation — A claimant whose project records were written after the work, Barrie, Ontario
A review notice arrived at a claimant whose project records were written after the work in Barrie, Ontario covering sr&ed claim preparation for two tax years. The auditor's working position was an adjustment of $19,000, driven by a claim filed at the 15% non-refundable rate when CCPC status supported 35% refundable.
What we did for A claimant whose project records were written after the work, Barrie, Ontario
Rather than negotiate, we rebuilt the record. We confirmed CCPC status and refiled at the enhanced 35% refundable rate and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A claimant whose project records were written after the work, Barrie, Ontario
The auditor accepted the documented position and closed the review without adjustment, protecting $19,000 and leaving the prior filings undisturbed.
Case Study 2 · Records and systems rebuilt
Books Rebuilt From Source, $6,900 In Unclaimed Input Tax Found — Medical Device Developer, Surrey
Client: A medical device developer · Where: Surrey, British Columbia · Engagement: 7 weeks, fixed fee
Unclaimed tax found$6,900
Records rebuilt27 months
ProcessDocumented
The situation — A medical device developer, Surrey, British Columbia
A medical device developer in Surrey, British Columbia could not answer basic questions about its own numbers, because an amended claim adding two projects after the reporting deadline had already passed sat between the bank statements and the ledger.
What we did for A medical device developer, Surrey, British Columbia
We identified the eligible projects, documented the technological uncertainty and systematic investigation for each, and filed a claim that survived review without adjustment, then documented the process so the work does not depend on any one person remembering how it was done.
The result — A medical device developer, Surrey, British Columbia
Records rebuilt and reconciled, $6,900 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 3 · Backlog brought current
$25,000 Of Arbitrary Assessments Vacated After 5 Years — Provincial Credit Claimant, Kelowna
Client: A corporation stacking a provincial credit on a federal claim · Where: Kelowna, British Columbia · Engagement: 9 weeks, fixed fee
Arbitrary tax vacated$25,000
Years brought current5
Account statusCurrent
The situation — A corporation stacking a provincial credit on a federal claim, Kelowna, British Columbia
5 years of unfiled returns had turned into notional assessments at a corporation stacking a provincial credit on a federal claim in Kelowna, British Columbia, with a provincial credit left unclaimed alongside a successful federal SR&ED claim underneath. Collections had already started.
What we did for A corporation stacking a provincial credit on a federal claim, Kelowna, British Columbia
We sat with the technical staff to write each project description around the uncertainty they actually faced and the tests they ran, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A corporation stacking a provincial credit on a federal claim, Kelowna, British Columbia
All 5 years were accepted as filed. $25,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 5 years.
Case Study 4 · Scaling without breaking
Second-Province Expansion Handled, $129,000 Of Cash Released — Digital Media Game Studio, Halifax
Client: A game studio claiming digital media credits · Where: Halifax, Nova Scotia · Engagement: 5 weeks, fixed fee
Cash released$129,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A game studio claiming digital media credits, Halifax, Nova Scotia
Revenue at a game studio claiming digital media credits in Halifax, Nova Scotia was up sharply and cash was tighter than ever. Underneath it sat technical narratives written by the finance team with no input from the people who ran the experiments.
What we did for A game studio claiming digital media credits, Halifax, Nova Scotia
We netted the government assistance against the qualified expenditure pool, so the claim matched what would survive a review. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result — A game studio claiming digital media credits, Halifax, Nova Scotia
$129,000 of cash was released from the working capital cycle, and the expansion completed with every registration and filing obligation covered from day one.
Case Study 5 · Deadline rescue
Filed On Time From A Standing Start, $60,000 Penalty Avoided — Platform Software Company, Guelph
Client: A software company building a new platform · Where: Guelph, Ontario · Engagement: 8 weeks, fixed fee
Penalty avoided$60,000
Turnaround8 weeks
FiledOn time
The situation — A software company building a new platform, Guelph, Ontario
A software company building a new platform in Guelph, Ontario came to us 8 weeks before its filing deadline with a filing deadline missed by three weeks, extinguishing the entire claim. A late filing would have triggered a penalty of roughly $60,000 before interest.
What we did for A software company building a new platform, Guelph, Ontario
We worked backwards from the deadline. We layered the applicable provincial credit onto the federal claim in the same filing, prioritising the items that actually gated the filing and deferring everything that did not.
The result — A software company building a new platform, Guelph, Ontario
The return was filed on time and complete. The $60,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 6 · Sale and succession
Intergenerational Transfer Completed With $290,000 Deferred — Agri-Tech Company, Saskatoon
Client: An agri-tech company · Where: Saskatoon, Saskatchewan · Engagement: 3 weeks, fixed fee
Tax deferred$290,000
TransferCompleted
RecordsReview-ready
The situation — An agri-tech company, Saskatoon, Saskatchewan
A generational transfer at an agri-tech company in Saskatoon, Saskatchewan had been discussed for years without a plan. A single shareholder holding every share, with no room to multiply the exemption meant the transfer as contemplated would have been fully taxable.
What we did for An agri-tech company, Saskatoon, Saskatchewan
We put contemporaneous tracking in place — project logs tied to time records — so the following year’s claim was defensible by construction, sequencing the steps so each one was complete and documented before the next depended on it.
The result — An agri-tech company, Saskatoon, Saskatchewan
$290,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
