Client case study Civil Engineering

How Leyton obtained $187 000 in SR&ED tax credit for his client.

Frédéric Deraiche – Financial Director

Leyton’s teams pay attention to our concerns and allow us to improve our procedures for collecting and monitoring SR&ED projects

Challenge

How Leyton obtained $187 000 in SR&ED tax credit for his client

Civil Engineering is a field with a potential of R&D activity

Our client is an civil engineering firm that was founded 10 years ago in Quebec. When we first made contact with this client three years ago, he did not know the eligibility criteria associated with SR&ED tax credits or even the existence of these programs.

Civil engineering is a field where one might think that there is not much potential for SR&ED because the projects carried out are often tailor-made to specific construction projects (bridge, building, factory, etc.), environmental analyses, geomembrane installation, etc.

Given the diversity of these types of projects, multidisciplinary expertise was necessary to determine the eligibility of projects carried out during the year. Indeed, after talking with the engineers from the company, they weren’t able on their own to identify the technological uncertainties associated with their projects.

Solution

Examine the eligibility of the projects

After explaining the different concepts used to determine the eligibility and the admissible expenses associated with an SR&ED project, we then applied these rules to examine the eligibility of the projects which were carried out by the client during each fiscal year.

Benefits

The total amount received by the client for the three fiscal years is $187 000.

Claim of the SR&ED tax credit

We managed to prepare two claims at once for two fiscal years (2018 and 2019) in a fairly short time period. The first estimates were relatively low (about $ 20,000) for each year.

We managed to prepare two claims at once for two fiscal years (2018 and 2019) in a fairly short time period. The first estimates were relatively low (about $ 20,000) for each year.

However, for the 2020 claim, we managed to identify other admissible projects and associated expenses, thereby drastically increasing the value of this claim.

While the client was surprised by this result, when he considered the workforce attributed to this type of project, he better understood how his claims should be structured to collect all the credits he is entitled to.

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