Once filed, the claim is internally reviewed by CRA for both technical substance and financial congruity. CRA normally visits all first-time claimants to explain the program in more detail and set expectations for subsequent claims. The science and financial reviews may be conducted sequentially or jointly. These reviews are confined to SR&ED and are not audits of the company’s affairs. The review process varies depending on the quality and magnitude of the claim. A history of credible claims, without adjustments, reduces the processing time.

Since many first-time claimants are not aware of the program, especially while the work was being undertaken, CRA will generally allow reasonable first claims with less than ideal documentation. Nonetheless, documents are central to demonstrating a systematic investigation. Claimants should assemble documentation at the earliest opportunity, ideally at the conceptual or discussion stages of a project; evidence of a planned approach is preferred. Costs for development should be separated from other activities insofar as is possible. Now is a good time to start documenting any current undocumented projects. Diaries, photographs, sketches and meeting notes are all effective indicators of project work.

After review, the majority of claimants receive a refund cheque or tax credits to offset taxes owing. The SR&ED claim is a source of cash for R&D work and is considered income in the following taxation year.