{"id":2160,"date":"2025-07-14T15:59:17","date_gmt":"2025-07-14T15:59:17","guid":{"rendered":"https:\/\/leyton.majjane.agency\/ca\/post\/whats-changing-in-sred-review\/"},"modified":"2026-07-26T19:29:03","modified_gmt":"2026-07-26T17:29:03","slug":"whats-changing-in-sred-review","status":"publish","type":"article","link":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/whats-changing-in-sred-review\/","title":{"rendered":"What\u2019s changing in SR&#038;ED review?"},"content":{"rendered":"<p>The Canada Revenue Agency (CRA) has updated its guidance on<strong> <a href=\"https:\/\/leyton.com\/ca\/everything-you-should-know-about-sred-tax-credit\/\">SR&amp;ED<\/a> review<\/strong>, specifically by expanding how it explains the review of both <strong>scientific work<\/strong> and <strong>associated expenditures<\/strong>.<\/p>\n<p>While this isn\u2019t a change to the program itself, it reflects a clear expectation: businesses must be ready to demonstrate their claims clearly, consistently and with evidence.&nbsp;<\/p>\n<p>Here\u2019s what that means in practical terms.<\/p>\n<h2 class=\"wp-block-heading\">Your SR&amp;ED costs must be traceable&nbsp;<\/h2>\n<p>The CRA now outlines in more detail how it expects businesses to track and report <strong>expenditures<\/strong>.&nbsp;<\/p>\n<p>If you\u2019re claiming costs under the <strong><a href=\"https:\/\/leyton.com\/ca\/tax-credits\/sred-scientific-research-experimental-development\/\">SR&amp;ED program<\/a><\/strong>, you\u2019ll need to show:&nbsp;<\/p>\n<ul>\n<li>How those costs were tracked <\/li>\n<li>When the work was performed<\/li>\n<li>Who did the work<\/li>\n<li>How the costs link directly to the scientific or technical efforts<\/li>\n<\/ul>\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p>Cost <strong><a href=\"https:\/\/leyton.com\/ca\/sred-tax-credit-calculator\/\">calculation <\/a><\/strong>must be supported by internal records like timesheets, project logs, technical notes and financial documentation (e.g: general ledger, pay registers, T4s, R1s..).<\/p>\n<h2 class=\"wp-block-heading\">Reviewers may ask for a virtual or on-site tour<\/h2>\n<p>To better understand the claimed work, CRA reviewers may request a virtual tour of your facility or process. This can be as simple as:&nbsp;<\/p>\n<p>The goal is to place your<strong> technical work <\/strong>in context and make your claim easier to verify.<\/p>\n<h2 class=\"wp-block-heading\">Supporting information is critical&nbsp;<\/h2>\n<p>Reviewers will ask to see the documentation you referenced in your <strong><a href=\"https:\/\/leyton.com\/ca\/insights\/articles\/the-sred-is-dead-long-live-the-cric\/\">SR&amp;ED claim<\/a><\/strong> (especially lines 270 to 282 of Form T661).<\/p>\n<p>This may include:&nbsp;<\/p>\n<ul>\n<li>Technical records (e.g: lab notes, test results, prototypes, photos, version history)<\/li>\n<li>Employee logs or project timelines <\/li>\n<li>Meeting notes or internal communications<\/li>\n<li>Any evidence showing how work progressed and who was involved<\/li>\n<\/ul>\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p>The more<strong> specific and date stamped <\/strong>your <strong>records <\/strong>are, the <strong>stronger your claim<\/strong>.&nbsp;<\/p>\n<h2 class=\"wp-block-heading\">Financial documentation is equally important&nbsp;<\/h2>\n<p>Beyond technical evidence, your financial reporting must be detailed. Reviewers may request:<\/p>\n<ul>\n<li>Financial statements<\/li>\n<li>General ledger reports<\/li>\n<li>Source documents like contracts, invoices or timesheets<\/li>\n<li>Payroll summaries and proof of time spent on <strong>SR&amp;ED activities<\/strong><\/li>\n<\/ul>\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p>Disorganized or missing records can result in reductions or denials, even if the work itself is eligible.&nbsp;<\/p>\n<h2 class=\"wp-block-heading\">What happens after your review?&nbsp;<\/h2>\n<p>At the end of the <strong>SR&amp;ED review<\/strong> meeting, the CRA typically provides a <strong>verbal <\/strong>or a <strong>written feedback<\/strong> in the form of an eligibility report outlining the following:&nbsp;<\/p>\n<ul>\n<li>Review approach<\/li>\n<li>List of supporting evidence submitted<\/li>\n<li>Eligibility determinations (including the project background, understanding of the work performed, eligibility determination) <\/li>\n<\/ul>\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p>CRA may request additional documents after the review meeting and before submitting their eligibility report. In that case, the timeline to submit such supporting evidence will be agreed upon between the two parties during the review meeting.<\/p>\n<h2 class=\"wp-block-heading\">If disagreements arise, there\u2019s a clear process<\/h2>\n<p>If your disagree with the CRA\u2019s findings, you have options:&nbsp;<\/p>\n<ul>\n<li>Submit written representations with new evidence<\/li>\n<li>Request further discussion with the reviewer or their manager<\/li>\n<li>File a formal objection within 90 days of your Notice of Reassessment <\/li>\n<\/ul>\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p>It\u2019s important that your responses focus on facts and documentation not opinions or assumptions. All arguments should be backed by data and explained clearly. <\/p>\n<p>To learn more about how audits work from an Innovation Funding Manager, watch our webinar replay on optimizing your <strong>SR&amp;ED claims<\/strong>,<strong> strategies and audit preparation!<\/strong> <\/p>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<div class=\"wp-block-buttons\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/leyton.com\/ca\/insights\/webinars\/webinar-optimize-your-sred-claims-strategies-and-audit-preparation\/?utm_source=social&amp;utm_medium=article&amp;utm_campaign=SR%26ED_webinar&amp;utm_id=organic_july_2025\">Watch replay<\/a><\/div>\n<\/div>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<p>The CRA\u2019s updated guidance doesn\u2019t introduce new rules but it raises the bar on clarity and documentation. The process is now more transparent, but also more rigorous.&nbsp;<\/p>\n<p>For businesses, this is a reminder to treat <strong>SR&amp;ED claims<\/strong> not just as a tax exercise, but as a structured process that requires careful internal alignment between technical, operational and financial teams.&nbsp;<\/p>\n<p>Being prepared can mean the difference between a smooth review and a denied claim.&nbsp;<\/p>\n<h3 class=\"wp-block-heading\"><em>Need guidance preparing your SR&amp;ED claim?<\/em><\/h3>\n<p>At Leyton, we help Canadian businesses structure strong, compliant SR&amp;ED claims, every step of the way!<\/p>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<div class=\"wp-block-buttons\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/leyton.com\/ca\/contact-us\/\">Talk to an expert<\/a><\/div>\n<\/div>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<h3>References<\/h3>\n<ul>\n<li><a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/scientific-research-experimental-development-tax-incentive-program\/technical-review-a-guide-claimants.html\">CRA &#8211; The SR&amp;ED Review Process: A Guide for Claimants<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The Canada Revenue Agency (CRA) has updated its guidance on SR&amp;ED review, specifically by expanding how it explains the review of both scientific work and associated expenditures. While this isn\u2019t a change to the program itself, it reflects a clear expectation: businesses must be ready to demonstrate their claims clearly, consistently and with evidence.&nbsp; Here\u2019s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2858,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[457933,110,111],"tags":[6901,6904,115,109,113],"expertise":[774],"class_list":["post-2160","article","type-article","status-publish","format-standard","has-post-thumbnail","hentry","category-cric-en","category-sred","category-tax-credit","tag-audit-en-en","tag-innovation-funding-en","tag-sred-en","tag-sred-tax-credit","tag-sred-2","expertise-sred-tax-credits"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.1 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What\u2019s changing in SR&amp;ED review? - Leyton Canada<\/title>\n<meta name=\"description\" content=\"Discover key changes in SR&amp;ED review and how the CRA assesses claims and documentation. 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