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Released: 30 June, 1998
Revenue Minister Announces Results Of Scientific Research And Experimental Development (SR&ED) Conference
VANCOUVER, June 30,
1998...The Honourable Herb Dhaliwal, Minister of National Revenue and M.P.
(Vancouver South-Burnaby), today announced that Revenue Canada will implement an
action plan to improve the Scientific Research and Experimental Development
(SR&ED) Program. The announcement was made following an SR&ED conference
that ended Saturday in Vancouver.
The two-day conference,
entitled "Building Partnerships", brought together over 70
representatives from industry associations and individual companies to work with
government officials to improve the SR&ED program, and to ensure continued
industry participation in its administration.
Based on the proposals of the
conference workshops, Mr. Dhaliwal announced that Revenue Canada will work
towards implementing:
· a self-contained national
organization for the SR&ED program;
· measures to reduce the
number of formal disputes, based on improved communication, enhanced education
and secondary reviews, as needed;
· development of guidelines,
codes, and standards on an industry-sector basis to reflect industry
differences; and
· a streamlined approach for
processing claims, based on improved risk management.
The Minister also announced
that a review committee will be established to ensure the implementation of
these measures. Mr. Dhaliwal expressed his satisfaction with the results of the
conference and noted that they were consistent with many of the SR&ED
initiatives that his Department has put in place or is in the process of
implementing.
The Minister also emphasized
the value of a working partnership with industry to make improvements to the
SR&ED program. "The broad spectrum of industry involvement in these
proceedings reflects a commitment on the part of industry to develop a working
partnership with my Department for the betterment of the SR&ED program. This
is a commitment we share with industry," said Mr. Dhaliwal.
Mr. Dhaliwal also stated that
"we are confident that the action plan that was jointly developed with
industry will improve the administration of the SR&ED program."
The SR&ED program
provides broadly based support for research and development in every industrial
sector in Canada. In 1997, approximately $1.3 billion in assistance was provided
to over 11,000 participants through the program, and the number of claimants has
continued to grow at a rate of 13% a year since the beginning of the program in
1985.
"The SR&ED program
is a powerful tool in sustaining Canada's competitiveness. If government can
create an environment that allows Canadian industry to flourish, then we all
win," concluded Mr. Dhaliwal.
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Note
The conference was sponsored
by Revenue Canada and several industry associations. It was organized in part to
respond to the recommendations of a report entitled "The Federal System of
Scientific Research and Experimental Development Tax Incentives: Reviewing the
Partnership Through Consensus, Consistency and Predictability." The report
was prepared by the Canadian Advanced Technology Alliance (CATA) in
collaboration with the following industry associations:
Aerospace Industries of
Canada (AIAC)
Alliance of Manufacturers and
Exporters Canada (AMEC)
Canadian Chemical Producers
Association (CCPA)
Canadian Manufacturers of
Chemical Specialties Association (CMCSA)
Canadian Vehicles
Manufacturers' Association (CVMA)
Information Technology
Association of Canada (ITAC)
B.C. Technology Industries
Association (TIA)
For media information,
contact:
Colette Gentes-Hawn
Revenue Canada
(613) 957-3522
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31C/98
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