Ontario’s Wine Industry: Harvesting the Benefits of SR&ED

By Alex Berlyand, January 12, 2010

How wonderful it is to proudly browse the wide selection of Ontario’s wines at your local LCBO.  Knowing that your own winery is both a driving force in the Canadian economy and an innovator of the local wine industry can certainly be rewarding, both personally and professionally.

From challenges to opportunities

Quite often the goal of a grape grower to produce a consistent, high-quality brand of wine is met with many unexpected challenges. With the erratic situation of the Canadian economy following the recession, wine makers of Ontario struggle to produce at the risk of manufacturing downsizing. In addition to economic factors, the wine industry of Ontario is faced with a higher stringency under Vintners Quality Alliance (VQA) regulations, and the push from Wine Council of Ontario (WCO) to raise industry standards by participating in programs like Sustainable Winemaking Ontario.

For the individual winery of Ontario, keeping up with competition means continuously utilizing new technologies and finding innovative ways to provide a premium product, despite such challenges. Simply put, this boils down to having the necessary financial opportunities become available to maintain a healthy competition. Are these opportunities available to the wine industry of Ontario? Yes – SR&ED is the answer!

The SR&ED program

The SR&ED program (Scientific Research & Experimental Development) aims to reimburse companies for their experimental development expenses. For over 20 years and with about $4 billion a year in funding, it remains the largest single source of federal funding for R&D in Canada. The goal is to make creativity and innovation affordable in the Canadian business environment and foster future development.

The program is highly relevant to businesses who are naturally involved in shop-floor
experimentation. R&D projects that qualify under the program include (1) work undertaken for the purpose of achieving technological advancement and/or (2) creating new, or improving existing materials, devices, products or processes. The actual refund amount depends on proper identification and qualification of eligible expenditures.

Wineries in Ontario serve as ideal candidates for such funding. Typical SR&ED eligible activities that apply to the wine industry include:

• Developing new wines
• Altering soil chemistry
• Handling and harvesting technology
• Improved bottling techniques
• Altering practice as result of the weather
• Many more…

Wineries and growers may be regularly overcoming such obstacles in daily operation. Your innovative solutions to these problems may very well qualify you for some SR&ED funding. The program supports any attempts to improve your business operations, even if they do not prove successful.

Which costs qualify?

Working on new ideas takes time, wastes material and requires equipment modification. The SR&ED program allows retrieving these expenses:

• 68% of wages and salaries of personnel directly involved in R&D
• 41% of sub-contractor expenses
• 22% of capital expenditures

The refund has no strings attached – as a winery owner you are free to spend it anyway you like – buy new equipment, attempt new projects, or give everyone a big bonus – the decision is yours!

How we can help?

Submitting a SR&ED claim is a fairly complex and time consuming process. It involves properly identifying eligible activities within your business, associating the appropriate costs to these projects and completing a highly technical report to support the claim.

Using the extensive experience of a professional consultancy like ourselves, business owners have the opportunity to review their potential for qualification, and complete the application process in a few hours, and with no up-front costs. We get paid when you do!

Discovering that your business is eligible for SR&ED funding makes a world of difference. The goal is to help your winery take potential technical risks that will eventually lead to significant improvements in your industry.

Contact me at alexb@tripol.ca or call (416) 454 5215 for a free consultation today!

SR&ED Senior Technical Manager Job Opening

We are looking for Senior Technical Manager with the following Key Responsibilities:

• Manage the team of technical writers – scheduling, enforcing the quality of writing, quality of project costing part.
• Prepare the technical portion of clients’ Scientific Research & Experimental Development (SR&ED) claims. 
• Build relationships at a senior level and be seen as a trusted business advisor.
• Examine our clients’ activities to determine which R&D activities qualify for income tax incentives.
• Plan, organize and execute engagements on time.
• Interview technical personnel and prepare all necessary documentation to file an SR&ED claim on behalf of our clients.
• Assist clients in technical review preparation, attend technical reviews.
• Training new technical writers.
• Actively mentor and coach team members to their highest potential.

Qualifications:

• Master Degree or Ph.D. in Engineering.
• 10 or more years experience working in private companies.
• Minimum 3 years of relevant SR&ED work experience.
• Several years of project management experience.
• Strong commitment to professional and client service excellence.
• Superior verbal and written communication skills.
• Proven ability to deliver the full cycle of project management accountabilities.
• Ability to work with minimal supervision on multiple projects.

To apply, forward a cover letter and a resume to hr@taxrefundscanada.ca.

Hiring: SR&ED Technical Writer

• We are looking for a person with extensive experience (at least 10 years) in Mechanical Engineering (Computer Programming,
  Food industry), preferably with Ph.D. or Master degree.
• Excellent logical skills and creativity are a must.
• Capable to write well structured documents.
• The responsibilities include gathering info from clients, writing technical documents for SRED claims, participating in reviews if required.
• The person
  should be dealing with clients as a company representative. Work independently.
• Working hours are very flexible – work mostly
  from home.
• Could be full time (preferable) or part time (but requires at least 20 hours per week). In the case of the part time arrangement
  the payment is done based on percentage of the fee the company is getting from the clients. The fees are very lucrative. In the case of full
  time employment the employee will get fixed payments (by-weekly or monthly) and on project completion additional bonus.

To apply, forward a cover letter and a resume to hr@taxrefundscanada.ca.

3 Reasons to attend the Graphics Canada Trade Show (Nov 12-14, Toronto)

On Nov 12-14 Tax Refunds Canada (powered by Tripol) will be exhibiting and talking about SR&ED at the largest event of the print industry: Graphics Canada Trade Show in Toronto. This is where the Print industry meets in 2009. With the large volume of expected attendees, numerous exhibitors, newest technologies and meaningful seminars, this show is bound to be a colorful, exciting and important meeting place for those involved in the industry.

Largest Graphics, Printing & Converting Show

With over 12,000 people visiting the last show in 2007, this show vows to bring together a large spectrum of industry representatives; from Canada’s 100 largest print clients to small print-shop owners. This is certainly a place to meet the who’s who of the Canadian print industry. Numerous testimonials (link) indicate the significance of the show for the industry

Discover latest technological advancements and industry trends

The show will features several “shows within the show”, addressing various aspects of the industry and allowing the visitor to grasp a glimpse at the whole industry – all under one roof.

-         Wide Format & Sign Pavilion

-         Software and Automation Zone

-         Design City

-         Pac Print – Converting & packaging show

-         Graphics Software Theatre

-         And more!

Terrific Educational Experience

Starting with a Free Keynote presentation by Dr. Joe Webb on Thursday Nov.12, 9-10, during the three day-show various seminars will be conducted discussing a wide range of relevant topics such as:

-         Gov. funding opportunities for printers in Canada

-         Sourcing and the Sustainable Forestry Initiative

-         Driving Profits Through Automation

-         Web-to-Print, what it Really Means

-         And more!

Graphics Canada Trade Show is a must for members of the print and related industries. It’s a wonderful opportunity to catch up on industry events, learn more of recent trends, discover new and innovative technologies and most importantly to meet and network with old and new colleagues.

Optimistic thoughts at CMTS: SR&ED and manufacturing in Canada

Toronto, Fall 2009

On Oct.19-22 2009, Tripol Canada took part in the Canadian Manufacturing Trade Show in Toronto. The event is considered a show case of the industry and  clearly demonstrated the positive impact the SR&ED incentive delivered over the years. Careful conclusions may be drawn about the future of manufacturing in Canada based on 4-day conversations with representatives of all levels.

Competition is tough

With highly competitive costs of manufacturing in developing countries, many goods are no longer produced in Canada. This trend is now prevalent more tha

n ever before. As developing industries become more sophisticated and accessible, the option

to outsource is available to an increasing number of producers who then transform to distributors. This trend is reflected in the decreased size of the show (industry veterans tell of events twice and even four times the size of the current show).

Innovation is of essence

Cutting edge technologies at the CMTS

The only way for Canadian or any other developed-country manufacturer to survive in the upcoming years is to innovate, to develop unbeatable capabilities, and to offer new cutting-edge products. But in the modern world of technology innovation is risky and expensive. How can a small or even a mid-size business afford to properly innovate while trying to survive at the same time?

The Government IS doing something about it

As in most developed countries, the Government of Canada encourages research and development through incentive programs like SR&ED and IRAP. In fact, in 2008 alone, over $4 Billion was delivered to Canadian producers and manufacturers engaged in qualified experimental activities. Many industries qualify under SR&ED, ranging from Print to Food and IT to Manufacturing industries.

The future is bright!

A significant portion of the show was devoted to companies in new and emerging industries. These companies are at the forefront of technology, and taking a massive advantage of the high level of engineering expertise available in Canada, and the incredible Gov. funding opportunities like SR&ED and IRAP. The remarkable applicability of these incentives to a wide range of industries (Print,IT, Food and Manufacturing to list a few) promises a future economic growth and advancement of technology in Canada.

CMTS Day 3: SR&ED and the future of Canadian Manuf. What’s your take?

The spacious halls of exhibition centre remained half empty thorough out the third day of CMTS. The very slow visitor traffic allowed us to dwell in to philosophical conversations with our neighbors about the current and the future state of the manufacturing industry in Canada specifically and North America in general. Below is a very brief overview.

It is a known fact that traditional manufacturing is in decline in Canada. Every year more and more products are outsourced to off-shore factories, driven by the low cost of labor. We went out and asked our neighbors at the CMTS what do they think about the situation, and how are they dealing with it.

We learned that in order to survive in the North America as a manufacturer, speed and quality are the two things you can compete on.

The use of highly sophisticated technologies allows the production of supreme quality products. THAT you can’t outsource.

SR&ED incentive plays a pivotal role in enabling businesses to embrace new technologies, invest in new equipment, and enhance specialization. “We couldn’t afford this machine with out the incentive. We spent so much time trying to overcome the challenges posed by our old equipment – thankfully, it paid off and now we have the needed cash to purchase this machine and remain competitive” says one of the visitors at the show.

Investment in high technologies is crucial for the growth and survival of North American manufacturing. SR&ED is one way in which Canada supports this industry; in over $4 billion is available annually for Canadian companies of any size that attempt to enhance their capabilities through R&D and shop-floor experimentation.

What is your opinion on the future of Canadian and North American manufacturing?

CMTS Day 2: talking about SR&ED and IRAP at the show

Tuesday was the second day of the Canadian Manufacturing Trade Show in Toronto. Certainly, more people attended compared to the first day, but there was still plenty of time to walk around, and spend extra time talking to clients.

Our involvement in the manufacturing industry goes back many years. So it was no surprise to us to meet quite a few of our existing clients. Throughout the day we prepared a list, of how our clients used the SR&ED funding they received (sorry, we can’t mention real names).

The SR&ED incentive program reimburses companies for their investment in R&D and shop floor experimentation:

Company spends money > SR&ED application made after fiscal year end> funding received

Once the company receives the funding, it is free to spend it in any way it desires.

-         Never have to pay it back.

-         No limitations on how the funding is spent.

So how did they spend their SR&ED money?

John

John has a small machining shop with 5 employees. Last year his company qualified for $50K SR&ED refund.

The extra money allowed John to hold his team together, and he was able to keep everyone on payroll and not letting anyone go even when there was very little work earlier this year. “Now new orders are coming in again, and I have my whole team in place to fulfill these orders on time!”

Bob

Bob has a specialized, high-precision manufacturing plant. Last year, his company qualified for $80K SR&ED refund.

“With the SR&ED money, we were able to purchase a brand new 3D printer and make several significant improvements to our equipment“. With the technological improvements, we are able to further advance our knowledge, and conduct a higher quality type of R&D.

We were glad to hear these stories – the whole idea of SR&ED is to support companies and encourage technological advancement and innovation.

The third day of the show will be extra long – its starts at 10:00 and goes all the way to 20:00! If getting of work in the middle of the day is not possible for you, this is your chance to come in at a later time.

Come and see us at booth #32023!

CMTS Day 1: talking about SR&ED and IRAP at the show.

Today was the first day of the Canadian Manufacturing Trade Show in Toronto. This 4-day event is a major gathering venue for Canadian manufacturers, suppliers, distributors and related service providers.

As expected, the first day was quiet and very low on traffic. These quiet trade show days are a wonderful opportunity to spend a little extra time with each visitor, helping him/her to better understand what SR&ED and IRAP are all about, and how they relate to their particular business.

Although most Canadian manufacturers have been benefiting from SR&ED funding for many years, there are still quite a few operations that are not taking an advantage of this wonderful funding program.

Why do businesses are not claiming their SR&ED funding?

-         Not sure how to qualify.

-         Negative experience with paperwork (it may but shouldn’t take a while!)

-         Poor service from low-cost SR&ED consultants in the past.

The team at Tax Refunds Canada was glad to take the time and explain which activities qualify for SR&ED funding  , how to avoid spending days on paperwork and what to look for when you decide on your SR&ED/IRAP service provider.

Today we reminded ourselves, why we love participating in trade shows: it’s the unique opportunity to meet with existing and future clients in person, tell them all they need to know about Gov. funding, and address their own personal concerns with regards to the programs.

Come and see us at booth #32023!

SR&ED advice at the CMTS – Toronto, Oct 2009.

The team at Tax Refunds Canada is proud to take part in the upcoming Canadian Manufacturing trade show (http://bit.ly/3yQuvX) in Toronto Oct. 19^th- 22^nd.

The CMTS is “Canada’s definitive showcase for the latest machine tools, automation technologies, production methods, management strategies and more” (http://bit.ly/3yQuvX ).

We are looking forward meeting with business owners and decision makers and telling them all about the various government funding programs available to them, such as SR&ED (http://bit.ly/2prQbf ) and IRAP.

Come and see us at booth #32023!

SR&ED – IRAP seminar at Consac Trade Show

On September 25-26 2009, Tax Refunds Canada (powered by TRIPOL Canada)  had the opportunity to exhibit and conduct a seminar at the Consac-Imagemakers trade show in Toronto, thanks to the great help and  support of Sherri Edwards and Just Cole of the Sac-Ace association.

The sign Industry is wide, diverse and employs very sophisticated equipment. The products exhibited at the show featured a variety of cutting edge technologies ranging from Fusion Cast Technology to Grip Gard Base Coat, laser cutting, and other specialised sign-industry specific solutions. Visitors to the show were immersed in high-tech right from start – all entrants were greeted by an interactive, projected to a human-shaped silhouette customer service lady, who became a useful touch-pad information centre with a click of a button!

Almost every sign is a complex and highly detailed project, often requiring the sign shop to experiment with their production processes to satisfy highly diverse customer demands.  This experimentation process is exactly what makes the sign industry highly eligible for Government funding innovation programs like SR&ED, IRAP and OIDMTC.

Mark Sorkin and Nik A. Rostarchook were glad to meet and talk to lots of business owners and industry professionals at our booth. The opportunity to meet so many people in person at the booth, helped to create a very pleasant dialogue atmosphere on the seminar TRC conducted later in the show.  Business owners felt comfortable enough to share personal experiences and better understand how exactly they can qualify for the funding).

SR&ED supports Canadian businesses investing in innovation and experimentation. In 2008 alone, over $4 Billion was delivered to businesses in various industries: Hi-Tech, Manufacturing, Printing, Meat and Food Processing, Bakeries and Restaurants, and many others. 70% of funding was received by small and medium size businesses.

TaxRefundsCanada.ca (powered by Tripol Canada) simplifies the application process to less than 8 hours with the support of 20 highly trained engineers, with wide ranging areas of expertise. Over the past 8 years, we connected over 200 businesses and successfully completed over 900 SR&ED applications, learning with time how to balance it with additional programs like IRAP and OIDMTC.