Client case study Aeronautic

How the Leyton teams succeeded in obtaining the SR&ED tax credit despite the audit risk involved in the aeronautic machining and manufacturing field.

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David Simard – Manufacturing Engineer

We greatly appreciated the expert and professional services of the Leyton team, who were able to successfully support us in our claims process despite the specific technical features of the project.

Challenge

How the Leyton teams succeeded in obtaining the SR&ED tax credit despite the audit risk involved in the aeronautic machining and manufacturing field.

The projects did not meet the CRA’s eligibility criteria

Our client is a company that works in the field of manufacturing and machining of aeronautical parts. They no longer claimed the SR&ED credits since 2012 because the claims were rejected.

The projects did not meet the CRA’s eligibility criteria. Our client was even advised by some manufacturers who work in this field to not make any more requests because the CRA will automatically be audited and reject the credit claim.

Solution

Our team first organized a meeting with the engineers involved in the projects in order to understand the nature of the projects claimed and refused by the CRA, determine and explain. The weaknesses of the projects, as well as the reasons for their failure.

An effective method

Trainings were given to engineers to better understand the SR&ED program. We then defined the axis of research and presentation of the future project to qualitatively meet the eligibility criteria of the CRA.

The claims report was no longer presented as a project to manufacture complex aeronautical parts, but rather as a technological process involving the development of new design concepts, which calls into question certain principles generally used in current practice.

Our vision on the project and our methodology were well received by our client because it was secured by the fact that the project is defined according to a technological axis rather than simple manufacturing of complex parts.

Benefits

An effective method of documentation and regular monitoring of projects has been established to support the claim and to maximize the credits.

Admissibility of all projects

The advice provided as well as the strategy adopted to define the axis of research, presentation of projects and structure the claim, allowed our client to meet the requirements of the CRA and therefore all projects and expenses were accepted.

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