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Ottawa December 08, 2003 ... As we make a political changeover in Canada, there's an opportunity to create a much better investment climate for high tech growth. At the same time there are significant risks as government re-evaluates its programs and expenditures. We are tracking these risks and responding proactively.
CATAAlliance has prepared a comprehensive advocacy defense of Canada's SR&ED tax credit program. We are calling on companies in Canada who are expending considerable investment in Canada-based R&D to actively engage themselves in helping to advance this campaign.
A CATA tax team, led by senior tax and finance experts, has completed the research needed to back up our case. This represents six months of discussions, a client survey, research consultancy and the mapping of a communication plan.
Please refer to the following materials:
With respect to the gap analysis, its conclusions are worth noting:
"Through the effective partnership of industry and CCRA, significant improvements were made to the SR&ED program. We are encouraged by these efforts and the progress that was made. We believe that as a result, the program once again became an effective instrument. However, we at CATAAlliance have been hearing from our members, both directly and through our "2003 SR&ED Satisfaction Survey" that disturbing problems are now surfacing. CCRA senior management needs to understand what is happening and what the impact is on the effectiveness of their management. The goals of the action plan are not met and there are critical gaps. We believe that CCRA must revisit its commitment to working together with industry to achieve a consensus on policies. This will maximize the policies' acceptance in the community and if necessary, the courts.
Finally, we should emphasize that we know that the managers and staff are dedicated, skilled professionals who are doing their best to make a difficult structure and environment work. We commend them for their fortitude but argue that the managerial structure and environment in which they must work is neither appropriate nor supportive of their needs, nor those of this important program. We believe a review and action are warranted in order to improve the situation before it becomes a larger problem."
With respect to the draft gap analysis, it is for internal circulation only. Your comments would be appreciated. Please send them to johnreid@attglobal.net asap for we intend to finalize this paper shortly.
CATAAlliance has mapped out a meeting/communication strategy to advance the industry's positions, beginning with the Commissioner of the CCRA to review the gap analysis.
We are calling on companies in Canada who are expending considerable investment in Canada-based R&D - contact CATA directly to provide input to this important initiative targeted at both preserving and improving this critical business investment program
Thank you for your assistance and support of CATA's defense of the SR&ED tax credit program.
Ps Note that claims assistance is being provided through the CATAAlliance SR&ED Centre established in 2001 as a repository of best practices and advice for our members. We have completed major updates to the Centre. | 
