Smokey the Bear and SR&ED Audit Defense

Thank You for Self-Filing Your 2020 SRED!*

This post is titled “Thank You for Self-Filing Your 2020 SRED!*”  I’d give it a sub-title, if I knew how to do it in WordPress: “Hey! Help! Who do I call for SR&ED Audit Defense?!”

G6 has a thriving niche vertical in SR&ED audit defense.  SRED audit defense is a nice change of pace for a few reasons.  First of all, we didn’t prepare the claim, so we don’t need to feel guilty about landing the customer in the soup.  Two, we get paid upfront, a flat fee in most cases.  This is a welcome departure from our normal contingency billing.  Third, we need to participate in some audits to get G2 on the government’s current posture regarding reviews, strictness, and points of emphasis. This sort of valuable colour is simply not available at What’s New in SRED.

So we do thank self-filers, folks who file SRED with the big accounting companies, people who got a “deal” on their SRED for 14%, and the ill-informed, who generally file with unvetted companies, losers, or people who “boast” about their SR&ED “AI”.  These unfortunates are our future SR&ED audit defense valued customers.  Thank you.

We participated in a SRED audit defense December 28. Imagine that, the government scheduling work for December 28.  The military term for that would be, “Congrats, you have been invited to a Foxtrot Uniform meeting.  We helped the customer out.  That is how we roll.

The government will tell you in any general info session, audit, or FTCAS, that they are reviewing your claim for systematic work.  Systematic investigation is a cornerstone of the scientific method. Yet, how did you pick your SR&ED provider? Did you do your homework? Did you attempt to secure the services of the SRED thought leader? The customer service leader? Did you shop around? Ask some tough questions?

G6 is not here to MAXIMIZE your SRED claim.  We leave that to flim-flam artists.  What does John Wooden teach us?  The great man led the UCLA Bruins to ten NCAA men’s basketball national championships in a 12-year period.  7 of those championships were in a row!  The bottom left cornerstone of John’s iconic, 15 block,  Pyramid of Success, instructs us:  “Success travels in the company of very hard work.  There is no trick. No easy way.”  No, G6 won’t maximize your 20XX SRED claim.  We strive to maximize your claim 5 years from now.  10 years from now.  In our considered view, THAT is John Wooden-style success for your company’s vital R&D funding.

*The title of this blog post is clickbait.  It is sarcastic.  Let me be entirely clear; I didn’t mean it.  I wish ill-fortune on no man.  For 99 people out of 100, I firmly believe that filing your own SR&ED claim is penny-wise and pound-foolish.  What is 14% of zero? Do you file your own corporate taxes? I can assure you that your SR&ED is 5x more complicated and more nuanced than your general taxes.  Where is my evidence?  It wasn’t that many years ago that the CRA employed ONLY PhD’s to conduct SR&ED technical reviews.  If you encounter an accounting professor/PhD conducting your next corporate tax, payroll or HST audit (see above re no ill will…) I will eat my hat.