Capnode translates sophisticated engineering and technological development into rigorous, CRA-compliant technical frameworks. We eliminate the friction between innovative companies and CRA technical adjudicators.
Segregates true technical roadblocks from standard routine engineering practice to satisfy CRA technical reviewers.
Correlates verifiable hypotheses directly to iterative testing records, commits, and prototype telemetry.
Defines the explicit net addition to internal technical knowledge, irrespective of project commercial success or failure.
Why standard SR&ED filings collapse under CRA scrutiny.
Most SR&ED claims fail CRA audits not because the R&D didn't happen, but because it was documented as commercial product development rather than scientific investigation. General approaches fail to identify where routine engineering ends and technological uncertainty begins.
Claimants frequently write narratives describing product features, standard framework integrations, or bug fixes. To a CRA Research and Technology Advisor (RTA), these read like standard operations—triggering audits and claim clawbacks.
We extract the specific scientific knowledge gap that standard engineering could not solve. We structure your testing cycles into an airtight audit trail that aligns with the CRA's five-question legal framework.
Comprehensive SR&ED Engineering & Defense
We evaluate your projects against Section 37(1) of the Income Tax Act, identifying high-defensibility R&D while filtering out non-qualifying routine work.
We draft the complete technical reports required by the CRA, framing systematic investigations, technological uncertainties, and advancements in rigorous engineering terminology.
If your claim is selected for review, we manage the technical defense directly with the CRA RTA, presenting contemporaneous evidence and defending your eligible expenditures.
How We Build Defensible Claims
High-level interviews to identify eligible R&D projects while filtering out non-qualifying routine engineering.
Establishing the exact technical boundaries that standard industry tools and public knowledge could not resolve.
Correlating eligible payroll hours, subcontractor invoices, and prototype costs precisely to qualified activities.
Coordination with your tax filing team and active representation throughout CRA administrative inquiries.
Frequently Asked Questions on SR&ED
Not at all. The vast majority of successful claims fall under Experimental Development rather than basic research. If your engineering team is building proprietary software, custom manufacturing processes, or novel architectures and encountering technical barriers that require iterative testing, you are likely performing eligible work.
Yes. From the CRA's perspective, technical failure is often the strongest empirical proof that a true technological uncertainty existed. If you expended resources attempting to overcome a technical roadblock, those costs remain eligible regardless of the project's commercial success.
No. The SR&ED program is administered by a specialized, compartmentalized directorate within the CRA. A technical review of your T661 form is conducted by Research and Technology Advisors (RTA) and is strictly ring-fenced from your general corporate operations and standard tax filings.
Neither. For qualifying Canadian-Controlled Private Corporations (CCPCs), SR&ED acts as a fully refundable Investment Tax Credit (ITC). It provides non-dilutive capital—meaning it functions as a direct cash refund on expenditures you have already incurred, with zero repayment obligations or future spending restrictions.
Whether scoping an ongoing development initiative or preparing to defend a claim in progress, speak directly with an SR&ED technical specialist.