SRED From The Shed:
Episode 4 – Evidence
Though #CRA doesn’t mandate that “Thou shalt keep time sheets!” they do require that evidence be collected to substantiate both the work conducted and the expenses claimed. If you don’t have supporting evidence an audit can be a nightmare and cost you the ENTIRE VALUE of your claim, EVEN IF CRA agrees that the work was SR&ED!
That said, if a robust (but NOT time consuming) SR&ED evidence strategy is set out and followed through the year audits are easily addressed.
In this episode we discuss some simple tips to help build a SR&ED evidence strategy, focusing mostly on substantiating the expenses claimed.