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Dmitry Shparber's Submission in Response to Joint Finance Canada – Canada Revenue Agency Consultation Improving the Scientific Research and Experimental Development Tax Incentives:
Being the key instrument for the industrial research conducted throughout the private sector, presently, SR&ED program is lacking attractiveness for multi-national corporations. Taking into the account that such companies provide with somewhat powerful capabilities where a larger portion of the overall budget is spent towards R&D as well as advancement in a variety of fields of applied science, such can contribute significantly to the creation of a climate of innovation on the domestic market. Present incentives for such corporations are not fully engaged due to non-profitability of the Canadian divisions as a result of a lower corporate taxation rates provided in the foreign taxation systems.