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Canada's Pitch to Tech Entrepreneur: We'll Pay 80% of Your Salaries

online.wsj.com

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Re: Canada's Pitch to Tech Entrepreneur: We'll Pay 80% of Your Salaries

#51

Post by stormbrew »

teamonkey wrote: post #48
stormbrew wrote: post #4

Earlier quoted context omitted.

The article is really light on details, but I'm pretty sure it's not describing anything new. It's just SR&ED (lovingly called shred colloquially) and related provincial programs, which have been around for a long time (in their modern form since at least 1994). In fact, it's probably fair to say that almost every tech employee (and many non-tech employees) in Canada has been under an SR&ED grant whether they knew it…

The requirements are quite specific. As a designer I didn't qualify for shred when I got here, but programmer colleagues (with an appropriate degree) did.

The requirements are, but enforcement isn't always particularly strong. There's a LOT of companies using SR&ED and relatively not a lot of bureaucrats checking up on it. It's extremely valuable to a company, so some will go to some pretty ridiculous lengths to get it.

Re: Canada's Pitch to Tech Entrepreneur: We'll Pay 80% of Your Salaries

#53

Post by alsocasey »

pyre wrote: post #42
pugsawakening wrote: post #15

I'm currently a beneficiary of SRED in a startup context in Canada. The first thing to note is that it doesn't solve many major problems. The lack of development talent is the biggest one; trying to get someone to move from California to Canada isn't something that's solved as simply as offering more money. And in my experience (as a recent graduate), the talent that would have studied computer science or has an inte…

> The lack of development talent is the biggest one My opinion is that it's less about lack of talent and more about hiring being hard (in general).

Looking at my own graduating class... it's not lack of talent, it's lack of opportunity. Many (most) graduates end up taking jobs south of the border within their first year post-graduation.

Re: Canada's Pitch to Tech Entrepreneur: We'll Pay 80% of Your Salaries

#54

Post by amscanne »

9oliYQjP wrote: post #34
hluska wrote: post #26

This article is light on facts (which is surprising to see in the wsj). This program is called Scientific Research and Experimental Development Tax Incentive Program. And, qualifying for a full SR&ED isn't as easy as they make it sound. To learn more, visit: http://www.cra-arc.gc.ca/txcrdt/sred-rsde/menu-eng.html

The trick to SRED is to hire an outside expert who will work on contingency to get a percentage of the SRED rebate they generate. There are many companies providing this service. These folks are experts on writing the necessary reports/forms given your engineers have written detailed logs of their work. Don't try to do SRED yourself. It's just one of those things, like hiring a lawyer, where it's complete lunacy to d…

I disagree with this advice.

SR&ED consultants are simply exploiting a knowledge gap for serious profits. If you can, you should find someone who can help you and give advice, but don't give away 10%+ of the return.

Re: Canada's Pitch to Tech Entrepreneur: We'll Pay 80% of Your Salaries

#55

Post by jeromeparadis »

9oliYQjP wrote: post #34
hluska wrote: post #26

This article is light on facts (which is surprising to see in the wsj). This program is called Scientific Research and Experimental Development Tax Incentive Program. And, qualifying for a full SR&ED isn't as easy as they make it sound. To learn more, visit: http://www.cra-arc.gc.ca/txcrdt/sred-rsde/menu-eng.html

The trick to SRED is to hire an outside expert who will work on contingency to get a percentage of the SRED rebate they generate. There are many companies providing this service. These folks are experts on writing the necessary reports/forms given your engineers have written detailed logs of their work. Don't try to do SRED yourself. It's just one of those things, like hiring a lawyer, where it's complete lunacy to d…

Or like myself, hire a firm once in your career, assist to the free government course and do it yourself in the future. The trick is really learning what they are looking for in the write up and scientific audit. The rest of the claim is easy. And once you're approved, you usually don't get audited thereafter.

Re: Canada's Pitch to Tech Entrepreneur: We'll Pay 80% of Your Salaries

#56

Post by amscanne »

danielsiders wrote: post #13
stormbrew wrote: post #4

Earlier quoted context omitted.

The article is really light on details, but I'm pretty sure it's not describing anything new. It's just SR&ED (lovingly called shred colloquially) and related provincial programs, which have been around for a long time (in their modern form since at least 1994). In fact, it's probably fair to say that almost every tech employee (and many non-tech employees) in Canada has been under an SR&ED grant whether they knew it…

I believe the company also needs to be majority owned by resident Canadian citizens. There are a number of accounting firms that specialize in SRED claims, but most take a cut of your return in exchange for their services.

Canadian Controlled Private Corporation: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/crprtns/typs/ccpc-eng...

I believe that permanent residents would also qualify under the requirements, citizenship is not strictly necessary.

Re: Canada's Pitch to Tech Entrepreneur: We'll Pay 80% of Your Salaries

#57

Post by maaku »

clubhi wrote: post #14
xux wrote: post #8

So... what's the catch? Sounds too good to be true. Can anyone think why they would do that? Can I just move there and get the benefit?

You have to live in Canada.

Why the downvotes? Seriously that's why the incentive exists. Not enough skilled people wanting to live in Canada.

Re: Canada's Pitch to Tech Entrepreneur: We'll Pay 80% of Your Salaries

#58

Post by amscanne »

xtrumanx wrote: post #19
pugsawakening wrote: post #15

I'm currently a beneficiary of SRED in a startup context in Canada. The first thing to note is that it doesn't solve many major problems. The lack of development talent is the biggest one; trying to get someone to move from California to Canada isn't something that's solved as simply as offering more money. And in my experience (as a recent graduate), the talent that would have studied computer science or has an inte…

> The lack of development talent is the biggest one; trying to get someone to move from California to Canada isn't something that's solved as simply as offering more money. Actually it would take a lot less money than you would think to get many people to move to Canada and take a job offer. There's a whole world of immigrants out there who would love to move to Canada. They're mostly not located in California howeve…

Unfortunately they don't qualify for T-N visas! :)

Re: Canada's Pitch to Tech Entrepreneur: We'll Pay 80% of Your Salaries

#59

Post by Danieru »

danpat wrote: post #49
elchief wrote: post #32

Earlier quoted context omitted.

It's more relaxed in Vancouver and Halifax. Less so in Toronto.

Super relaxed here in Canmore :-)

You don't happen to be working at that Sport Fitness Accessory company in Canmore eh?
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