The Bloom SR&ED Guarantee
- We guarantee that any claim we prepare from start to finish will be approved for 75% of its filed value.
- If we fail to meet our claim guarantee, we will not charge any fees for that claim year.
Terms and Conditions of the SR&ED Guarantee
- Any part of the claim submitted to the CRA that was not created by us, is not included in the SR&ED guarantee.
- Unless specifically stated otherwise, any claim started less than 6 months prior to your year-end, is not eligible for the SR&ED guarantee.
- Clients must be equal partners throughout the process and follow the guidelines set forth in the engagement letter.
- Items out of our control, such as if the CRA decides you are not a CCPC (and other similar circumstances that could reduce your claim), are not recognized as reductions to your claim.
- When calculating the SR&ED guarantee, only the SR&ED return is used in making a determination on whether or not we have met our 75% minimum standard. Prior amounts owed, or owing and affecting the net return for any given tax year, are not eligible when determining whether or not a SR&ED claim meets our minimum standard.
Example: We prepare a claim on your behalf and file for a tax credit valued at $100K. Our fee on that claim would be $15K. A successful claim without any CRA intervention would mean you would net $85K after our fees (for simplicity we have omitted GST in this example). Should the CRA decide to audit the following scenarios are possible:
- The CRA reviews your claim and makes a determination that the claim is worth $82K. We challenge that determination and the CRA changes their determination to $86K. Our 15% fee equates to $12,900 which means you net (before GST) $73,100. We are charging you are full fee because the claim we filed realized more than 75% of its filed value.
- The CRA reviews your claim and makes a determination that the claim is worth $68K. We challenge that determination and the CRA changes their determination to $72K. Our 15% fee would equate to $10,800, but as we did not realize 75% of the filed value of the claim, there are no fees charged to you. You net $72,000.
