Embed Size (px)
Citation preview
Your R&D Tax Prep on Autopilot
Get Your SR&ED Before It’s Filed
Increase Your SR&ED Claim with Software
TRUSTED BY MAJOR TECH HUBS
The only SR&ED automation software available. Join over 300 other companies that have switched to Boast.AI to increase claims and refunds for less time and money.
SR&ED Experts
Larger Refunds
Less Time
Reduced Audit Risk
Our team of engineers and accountants, with over 30 years of SR&ED experience, leverage the Boast.AI proprietary software platform to prepare your claims in real-time, increasing refunds and decreasing the time and energy required from your internal resources.
Since 2011, Boast has been helping innovative businesses in the US and Canada recover their R&D costs from the government.
About
What is SR&ED, what qualifies, what to claim
How to justify SR&ED tax credit claims to CRA reviewers with detailed documentation and reporting
How to automate and easily track labor time and costs associated with SR&ED eligible projects
How to get your SR&ED refund before your claim is filed
Agenda
What is SR&ED?
ScientificResearch&ExperimentalDevelopment
Government program to encourage further innovation in Canada
~20,000 companies received $3 billion in 2018
Up to 64% cash back on R&D spend
Applicable Industries?
SoftwareDevelopment & ITC
Oil & Gas andEnergy
Manufacturing
Agriculture
Bio Technology
And More
Who Can Claim?
CCPCCanadian Controlled Private
CorporationForeign and/or Publicly
Owned Corporation
NON-CCPC
SR&ED BenefitsRETURN RATED FOR SME CCPCs:
Salaries Sub-Contractors Materials
64% 32% 42%
Refundable ITCs
SR&ED BenefitsRETURN RATED FOR NON-CCPCs:
Salaries Sub-Contractors Materials
36% 18% 24%
Non-Refundable ITCs
Qualification Criteria
ALL OF THE ABOVE MUST BE PRESENT!
Technological Uncertainty
Systematic Investigation
Technological Advancement
Challenges usually indicate a technological uncertainty
There was due diligence by the team to search for publicly available answers
The uncertainty is determined within the context of the company
Technological Uncertainty
Meeting technical objectives
Example
Scalability, performance targets, accuracy targets
Which of several alternatives will produce the desired result
Example
Which algorithm or design methodology will satisfy technical objectives
How to build upon out of box solutions to adapt it to a unique challenge
Example
Use open-source framework X to solve problem Y with Z modifications determined through experimentation
Technological Uncertainty Examples
Systematic Investigation
SR&ED ELIGIBLE WORK MUST:
Be performed by qualified, experienced personnel
Incorporate a systematic investigation:
ITERATIONS
Hypothesis -> Experiment -> Conclusions
Advance the company’s knowledge-base in order to address technological uncertainty
Whether experimentation is successful or not is irrelevant
About knowledge gained, not the end product
Technological Advancement
Case Study
Software company with operations in Vancouver (CCPC)
7 developers (1 front-end, 6 back-end)
Salaries are $75K per year and ~58% of time is eligible
Case Study
Front end development not typically eligible
Eligible expenditure pool for salaries would be ~$261K ($75K x 58% x 6)
~$167,040K worth of refundable investment tax credits (ITCs)
PROXY OVERHEAD METHOD AND CCPC RATES OF RETURN
Claim Deadline & Turnaround
DEADLINE IS 18 MONTHS PAST FISCAL YEAR END
Current claim: - file within 6 months- ~60 day turnaround
Amended claim: - file within 7-18 months- ~60 day turnaround
Non-CCPCs can get audited within 12 months of filing even if claim is approved
CRA Reviews
CRA Review ≠ Tax Audit
MULTIPLE TYPES OF REVIEWS:
First Time Claimant Advisory Service (FTCAS)
Desktop
Technical &Financial
Financial
Technical Documentation
Dated Documented at the time the work was completed
Highlight technical challenges &
iterations
Technical Documentation
DOCUMENT TECHNICAL CHALLENGES AS THE WORK PROGRESSES
Highlight technical challenges & iterations
Monthly granularity: major technical challenges/obstacles encountered by the team
TIME TRACKING SHOULD INDICATE: PROJECT & ACTIVITY
Time Tracking
Any type of system can be used
Granularity: quarter day/half day and can be filled out weekly
SR&ED Activities
DevelopmentTestingTechnical analysisTechnical requirements Project management
Documentation Best Practices
Best Practice:
Hours per person per task
Story points can track approximate effort
Use clearly defined buckets (ie, 1 - 2 days, 3 days - 2 weeks, 3 weeks +)
Track effort by QA as well as development
Next Best Practice:
Approximate effort
TIME TRACKINGMost accurate determination of project cost
Documentation Best Practices
Be CONSISTENT in freeform fields
Use consistent names, wording and acronyms
Consistency allows the information to be used in aggregate
CONSISTENT DATA HELPS WITH CONTEMPORANEOUS DOCUMENTATION
Plan your changes to documentation practices
Tag tasks requiring a change in approach or solution
Tag incomplete or discarded tasks
Documentation Best Practices
JIRA Epics != R&D Tax Projects System area
Project - Note:
Impact: how it changes your system
SUGGESTED TEMPLATE [Internal Project][System Area] current state --> target state
TAG THE FOLLOWING
Allows you to see what a ticket is about at a glance
Your SR&ED Hub
Our software integrates with your existing technical and financial systems to help identify, categorize, and time track SR&ED eligible projects, leading to larger claims and refunds with
less time invested from your team.
Our Process vs Others
PROGRESS REVIEWTechnical and financial update
PROGRESS REVIEWTechnical and financial update
CLAIM SUBMISSIONTechnical ReportFinancial ReportTax FormsFinal Review
KICK OFFProgram OverviewData IntegrationRoadmap Review
4-12 weeks of manual effort from client searching historical data to identify eligible projects, prepare time estimates, and write reports.
OTHERS
BOAST.AI
Key DifferentiatorsBIG 4CONSULTANTS
Real-time Claim Preparation
Uploads Email, Docs, Images
Automated audit documentation
Integrations (JIRA, GIT, Payroll, Accounting)
Automated Time Tracking
Contingent Pricing
Manual Process
Filing & Audit Defense
Technical Report Writing (Engineers)
Financial Preparation (CPAs)
SR&ED Software
Client Time Commitment
Cost
>40 hours
$$$
5-10 hours
$$$
>40 hours
$$$$
INNOVATIVE FUNDINGFOR INNOVATORS
With our quarterly installments, companies will know exactly what to expect and when making budgeting a breeze.
WHAT ISCAPITAL-AS-A-SERVICE?
1 RELIABLE
The funding we provide is non-dilutive, so it’s an attractive part of a company’s capital stack.
4 AFFORDABLE
Our process is simple and devoid of redundancy, so valuable time can be better spent elsewhere.
3
EFFICIENT2
ACCELERATED
With Easly, funding begins at least a year sooner than waiting for a lump sum payment from the government.
3
2
1
HOW ITWORKS
Through our easy to use customer portal companies can qualify their credit profile and tax credit eligibility. There is no cost to applying.
JOIN EASLY
At the end of the year, taxes are completed as usual, including the tax credit claim. We get repaid directly from the CRA refund. There are no interest payments throughout the year.
SUBMIT YEAR-END TAXES
At the end of every quarter, customers submit the documentation needed to determine the accrued tax credit amount. We then distribute 75% of their accrued tax credit for that quarter.
RECEIVE FUNDS QUARTERLY
WHAT ARE THE BENEFITS?
Improves cash management with predictable cash flows.
Increases the diversity of a company’s capital stack.
Promotes a disciplined approach that maximizes ITC returns.
CASH MANAGEMENT OPTIMIZATION
Q1 Q2 Q3 Q4
$
Easly quarterly installment of 75% of accrued ITC eligible expenses
Accrued ITC eligible expenses (locked up until fiscal year end refunds are issued)
UNLOCKING A VALUABLE ASSET
RE-INVESTMENT MODEL
Some companies can benefit from re-investing their Easly quarterly installment back into SR&ED eligible expenses, increasing their total SR&ED refund for that year.
ILLUSTRATIVE EXAMPLE ONLY
Added benefit ofre-investing quarterly installments into more ITC eligible expenses
Q1 Q2 Q3 Q4
$
DIVERSIFIED CAPITAL STACK
CommonEquity
PreferredEquity
Easly
MezzanineDebt
SeniorDebt
30%+
4%
Ris
k an
d R
etur
n Every company has an optimal capital structure based on their access to and cost of debt and equity.
Easly can be an integral piece of that capital stack.
CAPITAL CONSIDERATIONS
- Costs
- Amount available
- Process / Timeline
- Ease of access
- Restrictions on use
- Covenants
DISCIPLINEDAPPROACH
MAXIMIZE THE BENEFITS OF ITCs WITH CONFIDENCE
Quarterly reporting encourages a disciplined approach to tracking ITC expenditure and aligns the goals of all stakeholders.
Our process maximizes returns by ensuring companies capture all eligible activities and are well prepared to defend a CRA review.
WE’RE A TRUSTED PARTNER IN INNOVATION
We develop long-term relationships with our clients and provide them with clarity, stability and confidence.
Our clients can maximize the benefits of government ITC programs by getting access to their refunds sooner and more simply.
Our service is designed to be part of an optimal capital stack alongside other lenders and capital providers.
“Boast enabled our executive team to focus on building our business instead of chasing SR&ED. They saved us countless hours of pain, guiding us through the process and putting together everything. We received 100% of our claim with minimal headache, including a full audit. Highly recommend every tech CEO take a close look.”
Contact Us for a Free Assessment
JASON SMITH, CEO, KLUE
Russ Armstrong416-520-8551
Jeff Christie403-589-2809
Minal [email protected]
