Client case study Construction

How Leyton Consulting team managed to obtain SR&ED tax credit despite a CRA audit.

Leyton Icon

François Leduc – President

The process of our claim with Leyton’s consulting team was simple, fast and efficient.

Challenge

How Leyton Consulting team managed to obtain SR&ED tax credit despite a CRA audit.

First-time SR&ED claimer

Our client was a consortium formed for creating a giant infrastructure in Montreal.

The deadline to prepare the SR&ED tax credit claim was tight, our consultant team had less than four weeks to complete the filling.

Our client was a first-time SR&ED claimer, therefore, the chance to be audited by CRA was high. Finally, our consultant team anticipated this risk and communicated it to our client.

Solution

To be closer to the technical team, for three weeks, our team worked at our client offices located at less than one kilometer of the construction site.

Preparation of the technical report

Considering the technological field as well as the nature of our client’s projects, we put together a team composed of three seasoned consultants, their technical background included: mechanical structures, industrial processes, and SR&ED taxation.

All technical interviews were made “on the go” because our client was busy at the construction site, and not so much available. Our team worked efficiently to get the best results. Our client shared with us relevant technical documentation to help to establish the project’s eligibility.

Fluid communication between our client, our consultant team, and our tax specialist allowed us to identify all activities and eligible expenditures.

Benefits

Our team timely completed the preparation of the technical write-ups in three weeks. Then the technical and financial reports were sent to our client accountant firm.

Claim of the SR&ED tax credit

As expected, the SR&ED claim was selected for a CRA audit. Our consultant team prepared the defense strategy. The technical team was prepared for the audit, a comprehensive presentation was put together to demonstrate the eligibility of the claim.

A series of rehearsals were scheduled with every project manager. After the audit review, CRA acknowledged the eligibility and expenditures for all the projects. The claim has been successfully accepted.

Related Case Studies