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jbob2000

This post puts into nice terms something I have been feeling for a while regarding my own startup. Why spend 40 hours filling out paperwork when I could spend 40 hours developing the product and actually making money? What good is a tax credit if I didn't pay any taxes because I didn't make any money?

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SR&ED is a tax refund - cash in hand at the end of your taxable year.

"if you did not pay taxes". No income, no taxes, no refund, no cash in hand at the end of the year.

Yes if it works anything like the US system you could probably credit that would-be refund towards the following year, or the year after. But is that worth the time away from product when your company needs it the most?

It's actually a refundable tax credit. You receive it even if you have no income or profit (and paid no taxes).

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