Author: R&D Capital

R&D Capital and CEIM Partner to Support Tax Credits Financing for Innovative Companies

An exclusive $3,000,000 fund made available by R&D Capital to CEIM client companies

R&D Capital and CEIM (Centre d’entreprises et d’innovation de Montréal) are proud to announce the signing of a new partnership agreement aimed at supporting the growth of Quebec’s innovative technology companies.

This agreement comes at a time of global instability and increasing competition, marked by recent trade tensions, and aims to bring together the complementary expertise of both organizations to facilitate entrepreneurs’ access to practical and tailored financial solutions needed to develop new markets and strengthen their competitiveness on the international stage.

Recognizing that R&D financing is a key driver of innovation, the agreement includes an exclusive $3,000,000 fund dedicated to financing refundable tax credits for CEIM clients, at both the federal and provincial levels.

“R&D Capital is a Canadian private financial institution specializing in refundable tax credits financing at both the federal and provincial levels. This initiative aims to provide meaningful and advantageous support to innovative companies within our network, giving them privileged access to financial resources,” said Pierre Binette, President and CEO of R&D Capital.

“This partnership fully reflects the mission of CEIM and that of the S.I.J. fund, which is also celebrating its 40th anniversary this year. In collaboration with R&D Capital, we are giving ourselves the practical means to support our innovative young companies and, in doing so, to strengthen Quebec’s economic resilience and prosperity. I am grateful to R&D Capital, whose expertise and commitment make them a key player in our ecosystem, and proud to count them among our strategic partners,” said Christian Perron, President and COO of CEIM.

For further information:

Pierre Binette,R&D Capital
pbinette@rdcapital.ca

Christian Perron, CEIM
cperron@ceim.org

More support for research and development

Message from the President

As all economists know, business productivity is an essential lever for prosperity and wealth creation. La Presse + reminded us in its December 14 edition that Quebec and Canada are, unfortunately, at the bottom of the class when it comes to productivity. In a ranking produced by HEC Montréal’s Centre sur la prospérité et la productivité, to which the daily referred, GDP per hour worked in Québec and Canada as a whole stands at $79.40 and $84.80 respectively. By comparison, Germany, France and the United States posted performances of $112.90, $108.60 and $104.30 respectively.

This productivity gap is partly explained by Quebec and Canada’s underperformance in their ability to innovate and take advantage of the country’s huge pool of R&D talent. In the Conference Board’s 2024 Innovation Report Card, Canada ranks 15th out of 20 countries analyzed for its overall innovation performance. South Korea, Switzerland and Singapore top the list, followed by Germany, Sweden, Israel and the United States.

More support for research and development

Faced with these worrying facts, it is imperative that our governments in Canada continue to provide significant support to our companies in their R&D work, so that they can innovate further, increase their productivity and enhance their competitiveness. In fact, one of the Conference Board’s recommendations in its report on innovation is to “make intellectual property (IP) and research and development (R&D) the key drivers of commercial success by improving funding and programs.”

Unfortunately, over the past few years, we have witnessed a financial disengagement on the part of governments. Among other things, this has resulted in a reduction in government R&D tax credits available to companies, which has had a harsh impact on the affected sectors. As a company specializing in the financing of refundable tax credits, R&D Capital has seen for itself the negative effects of the Quebec government’s decision last spring to revise downwards the tax credits offered to companies operating in the multimedia and video game sectors.

Prioritizing wealth creation

Rather than giving in to the temptation to cut R&D aid to ease short-term spending, our governments should look to the long term and redouble their efforts to help our companies meet our productivity and innovation challenges. Our future prosperity depends on it.

Wealth creation is mainly generated by our companies and SMEs. The BDC underlines that 99.8% of businesses in Canada are SMEs, and that they employ 85.2% of all workers in the country. Our governments don’t just have a mandate to redistribute wealth. They also have the primary duty of creating the environment and conditions that will enable this wealth to be created. This includes strong support for innovation and structuring assistance programs, including the maintenance of refundable R&D tax credits that directly stimulate investment in technological development by our companies.

In the current difficult economic climate, this is certainly not the time for our governments to lessen their support for our entrepreneurs, who, on the contrary, need to be able to count on predictable, reliable government assistance that is well adapted to their needs.

Pierre Binette
President
R&D Capital

About us

R&D Capital is the Canadian expert in the financing of research and development tax credits (SRED), e-business tax credits and multimedia tax credits. Don’t hesitate to contact us. You’ll receive fast, courteous and straightforward service, and within 10 working days you’ll know what financing is available to you. For more information, you can reach us by e-mail at pbinette@rdcapital.ca or at (514) 798-0493, ext. 222. We look forward to helping you realize your projects and ambitions.

Getting started now will pay off

2024 fiscal cycle and refundable tax credits

Managing your tax obligations isn’t always exciting, but it’s essential to your company’s financial health. It’s already the end of November, and now is the time to take action to benefit quickly from your refundable tax credits, which will strengthen your company’s financial flexibility and make it easier to manage your operations.

For companies with a December 31 fiscal year-end, we strongly encourage you to finalize your technical report before the end of the year to support your claim for tax credits. This will enable you to submit your tax reports early in the year, including the T2 form for the federal government and the CO-17 return for Quebec.

The sooner you get in touch with your accountant and the specialist handling your R&D tax credit claim, the better for your company. It is therefore advisable to send your tax file to your accountant no later than February 15, as the tax advisors’ availability diminishes will be greatly reduced due to their increased workload during this period.

Submitting your tax returns before March 30 will significantly speed up your tax refunds. Late filing, on the other hand, can lead to delays of several months and additional costs, such as substantial interest and penalties.

Proactive management of your tax obligations includes:

– Filing your tax claims within three (3) months of your fiscal year-end (March 30
for companies with a December 31 fiscal year-end)

– Filing and paying your GST-QST tax returns on time

– Managing your D.A.S. reports and payments on time

– Producing your T4 summaries by February 28 (regardless of your fiscal year-end)

In our experience, failure to meet these obligations with revenue agencies raises red flags and can result in technical or tax audits, causing delays of several months in the processing of tax credit refunds.

In short, companies that are diligent in filing their tax returns demonstrate their commitment to rigorous and responsible tax management, which contributes to easier and more productive relationships with revenue agencies, much faster access to tax refunds and lasting financial stability.

About us

Refundable tax credits: get the support you need to make the most of them

We invite you to watch this video by Mr. Marwan Bitar, founding partner of Innoprofits Solutions, who explains the importance of being well-supported in managing refundable tax credits.

Although tax credits can introduce a certain complexity in business management, they represent a financial and development lever that is essential to fully capitalize on. Optimal use of refundable tax credits, including their financing, can play a significant role in the success of your projects and your business.

Enjoy watching!

Interview with Marwan Bitar, founding partner of Innoprofits Solutions

About us

Calling in the experts:

a smart move to make the most of your R&D tax credits.

We are pleased to present this interview with Pierre Savignac, CEO and Founder of Emergex Subsidies.

Surround yourself with specialists

As you’ll see from listening to this seasoned expert, it’s in your best interest to surround yourself with specialists when it comes to preparing your R&D tax credit claims. That way, you’ll get the most out of your claims, and potentially avoid unnecessary hassles.

In fact, the support of a firm like Emergex combined with R&D Capital’s expertise in financing your refundable tax credits are two essential foundations of a solid tax and financial optimization strategy for your company.

Interview with Pierre Savignac, CEO and Founder of Emergex Subsidies.