Uncle Sam

Have You Filed 2020 SRED? Received CEWS? You Have MisFiled! Call g6 for ‘audit-proofing!”

CEWS-SRED misfiling.  This post is particularly aimed at corporations with March to June year ends who have already filed a 2020 T2 with both CEWS and SRED.  Guess what? You’ve misfiled.

Here’s a front page headline from the Globe and Mail Dec 22, 2020:

If you have already filed a 2020 T2 with SRED, and you have received CEWS subsidies this year too?  Guess what?  It’s almost guaranteed you have misfiled.

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”
Many companies see this instruction, see their large CEWS receipts for 2020 vs their relatively small 2020 SRED expenditures, and reduced (or plan to reduce) their SRED salary expenditures to zero.  That over-deduction unnecessarily drops your 2020 SRED credits by up to 65%.  Or even worse, companies reduce their entire 2020 SRED expenditures to zero.  Which of course puts your SRED credits received in 2020 to zero.  Don’t do this!  Call g6 immediately to help you recover tens to hundreds of thousands of dollars of SRED credits you are entitled to receive!
G6 Consulting has Canada’s first and best tested CEWS-SRED calculator.  We’ll fix your 2020 SRED filing.  If you haven’t filed your 2020 SRED yet, we’ll ensure that the CEWS deduction it contains is accurate to the dollar.  G6 will maximize your 2020 SRED credits AND make you “audit-proof”.  Win-Win for you!