News release

Revenue minister annouces improved SR&ED tax credit service

OTTAWA, April 22, 1997...National Revenue Minister Jane Stewart today announced measures designed to improve service for companies claiming investment tax credits for scientific research and experimental development (SR&ED).

Under the SR&ED program, the federal government provides tax incentives to Canadian taxpayers that conduct scientific research and experimental development in Canada. The program is designed to encourage industry, including small business and start-up firms, to develop technologically advanced products and processes in this country.

"We are committed to providing the highest quality of service to clients of the SR&ED program. We want to ensure that taxpayers understand the incentives available and receive their tax credits promptly," said Mrs. Stewart.

In her speech to the Ottawa-Carleton Board of Trade luncheon, the Minister highlighted a number of initiatives designed to enhance the SR&ED program. They include:

• streamlining paperwork for small business with a new simplified application form;
• reviewing projects before they begin or while they are under way;
• expanding service by increasing the number of science offices serving SR&ED applicants;
• strengthening partnerships with industry associations and centres of technological expertise; and
• increasing awareness of the SR&ED program across the country through an outreach campaign.

"These improvements are practical examples of the Government's commitment to promoting economic growth and competitiveness in Canada," said Mrs. Stewart.

Revenue Canada will phase in these initiatives over the next two years. They will benefit taxpayers by providing greater certainty, consistency, and timeliness, as well as by reducing administrative burden.

Copies of the SR&ED guidelines and claim forms are available from Revenue Canada tax services offices, or on the Internet at: www.ccra-adrc.gc.ca/sred/

For media information, contact:

Michel Cléroux

Media Relations

(613) 957-3504

Revenue Canada's national news releases and fact sheets are available on the Internet at the following address: http://www.ccra-adrc.gc.ca/newsroom/menu-e.html

27T/97