There are payments and government benefits which reduce the SRED credits a company receives.
Minimize CEWS deduction from your SR&ED
If you deducted too little (or zero) CEWS from your 2020 SRED, that’s a clear-cut CRA audit red flag. Call g6 immediately to fix these errors and to “audit-proof” you. More likely, you OVER-deducted CEWS from your 2020 filed SRED. This scenario is more fun! Many companies just take the CRA instructions from June 16, 2020 regarding CEWS receipts and SR&ED eligible expenditures literally. Here’s the entirety of the instruction to save you a click:
“The Canada Emergency Wage Subsidy and the 10% Temporary Wage Subsidy for Employers are considered government assistance. Assistance received under either wage subsidy reduces the amount of expenses eligible for SR&ED investment tax credits”