Back in October the CRA announced its upcoming changes to form T661.
In our opinion the changes were all good changes and despite the “controversy” amongst other practitioners regarding the new Part 9 SR&ED preparer information we feel the biggest change was related to the new ordering of the three questions in section B as we’ve highlighted below.
The reordering of the questions brings the focus on to more tangible items (technological obstacles) versus more subjective items (technological advancements). More focus is brought, because this is the section the RTA will read first and thus have more bearing on the direction they’ll take when determining the eligibility of your claim. We feel that it is pertinent you understand these very subtle differences yet, in our opinion, very big changes.
For more information on how you can best prepare your SR&ED claims, please give us a call or send us an email.
- We have removed lines 223 to 229 in Part 2.
- We have removed lines 230 and 232 in Part 2. The relevant information from these lines is now requested on lines 620 and 622 in Part 7.
- We have removed lines 235 to 238 in Part 2.
- We have consolidated former Sections B and C in Part 2 so that all claimants answer the same three questions in Section B. We have also changed the order of the questions in Section B.
- We have introduced notes in Parts 3 and 4 to advise that expenditures for capital property or the right to use capital property can no longer be claimed after December 31, 2013.
- We have changed the descriptions for lines 350, 355, 390, and 504 to reflect that expenditures for capital property or the right to use capital property can no longer be claimed after December 31, 2013.
- We have changed the description for line 820 to accommodate the 10% reduction in the prescribed proxy amount (PPA) for the number of days after December 31, 2013, in the tax year.
- We have introduced new Part 9 to capture SR&ED claim preparer information.
- Part 10 is formerly Part 9–Certification.