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Released: 10 March, 1999
Federal Plan Moving Ahead To Improve Incentives For SD & ED
Ottawa, March 10, 1999
Revenue Canada's action plan to improve its Scientific Research and Experimental
Development (SRED) program is moving to full implementation, the Honourable Herb
Dhaliwal, Minister of National Revenue and M.P. (Vancouver South-Burnaby)
reported today.
"Our progress to date
shows the strong commitment of my department and the Government of Canada to
making the federal incentive program for industrial research and development
fair, friendly, and client-centred," Mr. Dhaliwal said. "One of my key
objectives as Minister of National Revenue is to make sure that this action plan
for research and development becomes a reality."
Mr. Dhaliwal outlined a
number of developments which illustrate the progress made since the action plan
was announced in November, 1998.
- In
less than one year, the backlog of SRED claims has been reduced by
two-thirds.
- As
part of the plan's objective to make the SRED program more client centred,
Revenue Canada has named account executives to work with research-intensive
companies in Vancouver and Ottawa. Also, the Department has made a preclaim
review of research projects available in six Canadian cities. These reviews
will be extended to all parts of Canada within the next year.
- Eleven
representatives from technology-based industries have been named to a
national steering committee that meets regularly to oversee the
implementation of the action plan.
- Joint
training has started in the aerospace industry and is planned for other
industries.
- Revenue
Canada has released a publication called A Guide to Conducting a
Technical Review. This publication has been released to the field and
is being circulated for consultation.
- Sector
committees have been formed in 11 industries, including automotive,
pharmaceuticals, software, oil and gas, communications, and chemicals. These
committees will clarify eligibility issues and develop interpretation
guidelines for the federal SRED tax incentives.
- In
April, Revenue Canada expects to process almost all SRED claims within 120
days.
In addition, Mr. Dhaliwal
confirmed that the Department will have an independent SRED directorate separate
from other tax audit activities. The directorate will manage a program that
channels about $1.3 billion into industrial research and development in Canada
every year.
The Director General of this
new SRED program directorate is Norine Heselton, Vice-President, Policy,
Information Technology Association of Canada, who joined Revenue Canada on an
executive interchange in January. Ms. Heselton is a former telecommunications
executive and a past chair of the Ottawa-Carleton Board of Trade.
The action plan and SRED
program information are available on Revenue Canada's Web site at: /sred
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Businesses interested in the
SRED program should contact:
Jim Millen
Director
(613) 957-9390
"
18T/99
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