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Released: 05 November, 1998
Revenue Minister Announces Action Plan To Improve The Federal Scientific Research And Experimental Development (SRED) Program
OTTAWA, November 5,
1998...The Honourable Herb Dhaliwal, Minister of National Revenue and M.P.
(Vancouver South-Burnaby), today releases Revenue Canada's action plan designed
to improve its Scientific Research and Experimental Development (SRED) Program.
The SRED Program provides
broadly based support for research and development in every industrial sector in
Canada. In 1997, about $1.3 billion in assistance was provided to over 11,000
participants through the program. The number of claimants has continued to grow
at a rate of 13% a year since the beginning of the program in 1985. The
Government is committed to maintaining this growth and to securing Canada's
leadership role in innovative research and development.
The action plan is Revenue
Canada's direct response to the recommendations of a recent SRED conference that
brought together more than 70 representatives from industry associations and
companies. The aim of the Revenue Canada conference was to work together with
industry to improve the SRED Program, as well as to ensure industry's continued
participation in the program's administration.
The plan contains 13 actions
based on industry's recommendations. One key activity has already been
implemented through the creation of the Action Plan Steering Committee, which
will prioritize the steps needed to improve the SRED Program. Other key actions
include:
- Representatives
of the private sector and Revenue Canada will jointly create sector-specific
committees to clarify SRED eligibility issues and to develop interpretation
guidelines.
- Revenue
Canada will re-organize its SRED Program to focus on science and incentive
aspects, and make the program independent of the Department's Audit
Directorate.
"This Government
understands the importance of tax incentives to the critical role of research
and development in our economy. Continued investment in research and development
is necessary if Canada is to remain competitive in the global marketplace,"
said Minister Dhaliwal. "Working to improve all aspects of the SRED Program
will help to ensure strong levels of this type of investment well into the
future."
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The action plan and SRED
Program information are available on Revenue Canada's SRED Web site at: ./sred.
For media information,
contact:
Colette Gentes-Hawn
Media Relations
Revenue Canada
(613) 957-3522
Tom Balfour
Office of the Minister of National Revenue
(613) 947-7299
"
45T/98
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