Ottawa, October 5th, 2007
Archived - Canada's New Government Launches Consultations on Improving Scientific Research and Experimental Development Tax Incentives
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- Improving the Scientific Research and Experimental Development Tax Incentives
- Tax Incentives for Scientific Research and Experimental Development
The Honourable Jim Flaherty, Minister of Finance, and the Honourable Gordon O'Connor, Minister of National Revenue, today launched consultations on how to make the scientific research and experimental development (SR&ED) tax incentive program more effective for Canadian business and allow it to play an even greater role in fostering a more competitive and prosperous economy.
"Canada's tax incentives for research and development (R&D) are among the most advantageous in the world" said Minister Flaherty. "But other countries are not standing still, and neither will we. We want to maximize the efficiency of our R&D incentives for Canadian innovators."
The SR&ED tax incentive program is the single largest federal program supporting business R&D in Canada, providing over $3 billion in tax assistance to Canadian businesses in 2006. The SR&ED program plays, and will continue to play, a leading role in fostering a competitive and dynamic business environment in Canada. In undertaking these consultations, the Government's overriding objective is to increase the level of private sector R&D by implementing cost-effective improvements to the tax incentives and further streamlining the program's administration.
"Our Government continues to look for new and innovative ways to improve the administration of the tax system and to reduce the burden on businesses" said Minister O'Connor. "Private sector R&D is crucial to the long-term growth and prosperity of our economy, and this broad-base consultation process will help us improve our existing programs."
The Government is releasing a consultation paper entitled Tax Incentives for Scientific Research and Experimental Development, which is intended to provide a basis for discussion and stakeholder input on a number of key questions relating to the SR&ED program.
These consultations will advance the Government's long-term economic plan, entitled Advantage Canada, which includes establishing an Entrepreneurial Advantage by creating a business environment that unleashes private investment, and a Knowledge Advantage by creating the best-educated, most-skilled and most flexible workforce in the world. The consultations also provide the foundation for the Government to fulfill its commitment in Budget 2007 and in its science and technology strategy, Mobilizing Science and Technology to Canada's Advantage, to identify opportunities for improving the SR&ED program, including its administration, to further encourage R&D within the business sector in Canada.
To participate in the consultations, interested parties should make submissions at www.fin.gc.ca/activty/consult/sred_e.html by November 30, 2007. The submissions will be used by officials at both the Department of Finance and the Canada Revenue Agency (CRA), and they will be posted on the Department of Finance website with the consent of the submitting parties. The Government is planning a series of meetings during the consultation process, allowing stakeholders an opportunity to provide comments directly to the Department of Finance and the CRA.
For further information, media may contact:
Office of the Minister of Finance
Director of Communications
Office of the Minister
of National Revenue
Canada Revenue Agency
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