Many physicians are unaware that eligible research work conducted within their medical practice or corporation may qualify for valuable tax incentives through Canada’s Scientific Research and Experimental Development (SR&ED) program.
Administered by the Canada Revenue Agency (CRA), the SR&ED program is designed to encourage Canadian organizations to pursue scientific research and technological advancement by providing tax credits and deductions for eligible work. Depending on the activities undertaken, eligible claimants may receive substantial tax savings or refunds.
Who Is Eligible?
The SR&ED program is available to incorporated physicians (MPCs) that carry out eligible research and development activities in Canada.
How much money can I get back?
In Bond’s experience, incorporated physicians conducting research can receive $25,000 – $200,00 in tax refunds.
For physicians, eligibility often arises through a Medical Professional Corporation (MPC) that is engaged in developing, testing, or improving technologies, processes, software, or methodologies used within a clinical, academic, or research environment.
What Work May Qualify?
Many physicians assume SR&ED only applies to laboratory research. In reality, a broad range of activities may qualify if they involve overcoming scientific or technological uncertainties through a systematic process of investigation or experimentation.
Examples may include:
- Design of hypotheses, protocols, & methods
- Data collection, data management, and data analysis
- Retroactive chart reviews, academic studies
- Prospective clinical studies, formal and informal clinical trials
- All time commensurate with the needs of the study
Each project is assessed based on its specific facts and circumstances, making a professional eligibility review worthwhile even if the work does not resemble traditional research.
How Do I Apply?
Visit the joint landing page with our SR&ED partner, Bond Consulting Group which is the largest independent SR&ED firm in Canada, and they will be able to assess your eligibility, projects/research, and written technical reports. SR&ED claims are submitted as part of your income tax filing.
Is There a Deadline?
Yes. SR&ED claims are subject to strict filing deadlines.
The SR&ED filing deadline is 18 months after your fiscal year-end, with no extensions and no grace period. Missing the filing deadline can result in the loss of SR&ED benefits for that taxation year. For example, for a fiscal year end of December 31st, 2024, you would have had to file your SR&ED by June 30th, 2026.
Because gathering supporting documentation can take time, we encourage you to review the process with Bond Consulting Group well before their filing deadline.
How Can I Learn More?
Determining SR&ED eligibility can be complex, that’s why we partnered with the largest independent SR&ED firm in Canada to make things easy so you can unlock additional money without additional work.
With more than 20 years of experience and over $300 million recovered in SR&ED tax credits, Bond Consulting Group has helped thousands of Canadian organizations identify and claim eligible research and development activities. Physicians who are unsure whether their work may qualify are encouraged to explore a complimentary SR&ED assessment to better understand their potential eligibility.
Even if you have never claimed SR&ED before, you may be surprised by the types of activities that can qualify under the program.
To learn more, visit the Bond Consulting Group member benefit page to schedule a free, no-obligation consultation with an SR&ED specialist.
Contributed by Bond Consulting Group
