SR&ED AND TEBA INCENTIVES AT CRA

Senator Deacon asked the Government Representative about the incongruent incentive structure at the CRA, where “tax earned by audit”, or TEBA, which is a tax compliance metric, is at odds with SR&ED which is a tax incentive. This puts R&D tax credits at risk of being de-incentivized due to the TEBA tax compliance metric.

You can watch Senator Deacon’s question here.