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SR&ED Consulting For Retail Businesses

Retail is an industry that thrives on constant innovation. From designing advanced supply chain systems to developing personalized shopping experiences, retail businesses are always seeking new methods to improve their processes and enhance customer satisfaction. Recognising this, the Canadian government has established the Scientific Research & Experimental Development (SR&ED) program, which offers valuable SR&ED tax incentives. However, identifying eligible activities and successfully claiming these incentives can be challenging. This is where we, at G6 Consulting, step in. We provide tailored SR&ED Consulting for retail businesses, ensuring accurate claims and maximum tax credits.

Understanding SR&ED

The Scientific Research & Experimental Development (SR&ED) program is a key federal tax incentive designed to encourage Canadian businesses to conduct R&D within the country. It provides businesses with both refundable and non-refundable tax credits for eligible R&D activities.

SR&ED and the Retail Industry

The retail sector provides ample opportunities for innovations and improvements that can qualify for SR&ED incentives. Whether it’s developing innovative inventory tracking systems, improving logistics, integrating AI into customer support, or designing state-of-the-art e-commerce platforms, your everyday developments may qualify as SR&ED.

Typical qualifying SR&ED activities in the retail industry may include:

  • Designing and developing new point of sale (POS) systems or improving existing systems.
  • Developing mobile applications or e-commerce platforms for enhanced customer experiences.
  • Advancing warehouse automation and logistics management systems.
  • Implementing machine learning or AI for advanced customer insights, personalisation or demand forecasting.

SR&ED Tax Credits for Retail Businesses

Retail businesses can claim two types of SR&ED Investment Tax Credits (ITCs):

  • Refundable tax credits: these can be used to receive cash refunds, beneficial for businesses with low or no taxable income.
  • Non-refundable tax credits: these can be used to reduce taxable income.

Canadian-controlled private corporations (CCPCs) may earn a 35% refundable ITC on the first $3 million of allowable expenditure and a 15% non-refundable ITC on any excess expenditure.

Non-CCPCs, including foreign-controlled or public corporations engaged in qualified SR&ED activities, can claim a 15% non-refundable ITC on all eligible expenditures.

Making SR&ED Work for Your Retail Business

Ascertaining what qualifies for SR&ED within the retail sector requires focused expertise. Beyond conventional R&D activities, SR&ED also comprises work directed toward achieving technological advancements to improve materials, devices, or processes.

Key factors to consider include:

  • Existence of technological uncertainties that necessitate experimentation or analysis to resolve.
  • Employing a systematic approach with adequate documentation of the work process, achievements, and failures.

G6 Consulting: Your SR&ED Partner for Retail

At G6 Consulting, we are dedicated to helping retail businesses successfully navigate the SR&ED process. With a comprehensive understanding of the retail sector and the specific SR&ED requirements, we provide unrivalled consulting services that ensure maximum tax credits.

Leverage your investments into innovation and drive your retail business forward with SR&ED. Contact us today for dedicated SR&ED Consulting for retail businesses. 

Get your SR&ED done right with G6 Consulting Inc – Canada’s R&D Tax Credit Experts!

G6 Consulting can work with you to build your claim, co-ordinate with your accountant, submit your claim and get you your cheque. No cost until you get paid

Check out our SR&ED overview page to learn more about SR&ED and how to qualify

Contact an Expert for a free no obligation consultation to see if your business can qualify

Check out our SR&ED calculator to get an idea of how big your SR&ED cheque could be