It is imperative to hire the services of an SR&ED tax expert. Today, there is no shortage in tax experts’ availability, so you need to be extra cautious to choose the best. After all, they will look after the entire SRED tax process, and you cannot take chances here.
Tips to Consider
Below are some vital tips that can help you choose an excellent SRED tax consultant,
-
Professionalism and Experience –
First and foremost, you need to check the tax consultant’s professionalism and experience. If the candidate has the required experience, they will face no issues sharing the total filing they have done to date. Do not shy away from all that you want to know. Ask him/her about the total number of successful filings and if they hold any experience to handle audit or claim review. If they do not possess the expertise to deal with audits and reviews, you will be at risk.
-
Areas of Expertise –
SRED programs apply to different industries. Thus your consultant should possess decent knowledge related to various industries. Each industry has different standard practices. The R&D activities, likewise for every industry, are likely to vary. The right expertise about an industry’s technical facets will be crucial to understand and evaluate the project’s eligibility. Resting on your industry’s nature, you may need the assistance of a tax accountant that is well-versed and reasonably knowledgeable in your specific needs.
-
Are Documentation Services or Evidence Inclusive? –
The majority of the SRED firms are pure practitioners. Their job is to make a technical report, right submission to CRA, and fill the tax forms. Ask the consultant if he has a documentation department or evidence with services to assist you because you attempt to be organized all through the year, especially during an audit.
-
Payment and Consultant Fees –
Most importantly, you must be aware of the total fees or payments you need to pay your tax consultant. You definitely should agree on their price and fee structure before you seal the service contract. Though the fee does not have any rules, some standard practices will serve you as a guideline. The tax consultant is likely to ask for either a tiered percentage or a flat fee. The fee of an SRED consultant depends on a specific part of the tax refund.
A flat fee means a part of a successful claim that is fixed, and the tiered percentage is a percentage that is fixed at a specified amount of successful claim. When there is a rise in the number of claims, the consultant fees will decrease. When you agree upon the consultant’s fee structure, you have to address the schedule of the payment. Some will need upfront payment before the completion of the submission process, while there will be others that will wait till the claim submission finishes. The bottom line is to be aware of what you are into and stick to your commitment.
So next time you hire an SRED consultant, consider these pointers sincerely, and you set.
Interesting Related Article: “The benefits of proper tax planning“