Our client’s industrial focus is in Motion Capture, audio, and localization services. The company previously claimed the SR&ED Tax Credit internally, but following an audit with CRA was denied part of his claim, specifically the project related to Motion Capture.
CRA’s position was that only existing technologies were leveraged without solving technological uncertainty. They called upon Leyton to do a risk analysis of a future claim and evaluate new projects undertaken in the company.
Analyzing his past audit results and looking at current and future projects in Motion Capture, we helped our client understand what part of this field of technology could be claimed as SR&ED.
In our case, we focused on the applied mathematics aspect of working in a spatial reference system that required complex trajectories for a camera, addressing discrepancies in 3D positioning registered by the software solution.
For doing so, we were able to showcase the underlying technological advancements that were achieved and the generic solution develops that limits errors in 3D positioning when using a camera in a Motion Capture shoot.
Following an audit that resulted in limited tax credit for our client, we were able to claim more credits than before while strengthening his claim from a technological standpoint, helping him to build a good relationship with CRA.