Claim Review Manual for Research and Technology Advisors

Audit Manual

The Canada Revenue Agency's (CRA) guide for conducting audits.

Business consent for access by telephone and mail (RC59)

A form used by taxpayers to consent to the release of confidential information about the claimant's Business Number (BN) account(s) to the representative named on the consent form or to cancel consent for an existing representative.

Business Number System

A CRA mainframe system to access claimant information like addresses and authorizations.

Claimant Representative

An individual or firm who is legally authorized to represent the claimant. Often they assist the claimant in preparing their Scientific Research and Experimental Development (SR&ED) claim and in dealing with the CRA.

Claimant

A person, partnership, or corporation filing an SR&ED claim. In the claim review manual (CRM) this is used when we refer only to those filing an SR&ED claim.

Control Function

The function in each Coordinating Tax Services Office (CTSO) that reviews SR&ED files referred from the tax centre (TC).

Coordinated Review

A review where the Research and Technology Advisor (RTA) and the Financial Reviewer (FR) work together cooperatively to review an SR&ED claim.

CORTAX

The CRA Corporate Tax Assessing system. It is an information system for accessing T2 (corporation) tax information.

CTSO

A Tax Services Office (TSO) that has some extra administrative responsibilities in the SR&ED Program, usually for one or more other TSOs in a region. There are 7 CTSOs for the SR&ED Program.

Decision / Determination

In the context of the CRM, the RTA makes a determination of whether work does or does not meet the definition of SR&ED in the Income Tax Act. RTAs may make other decisions that don't directly relate to the definition of SR&ED.

Eligible work

Work that meets the definition of SR&ED in subsection 248(1) of the Act.

Financial Review

A review of an SR&ED claim by an FR to identify SR&ED expenditures.

Issue

A matter or question whose outcome needs to be determined or answered.

Memo to File

A memo, not addressed to a particular person, that is put in the file.

NOO

Notice of objection. A formal disagreement filed by the claimant in response to a Notice of Assessment / Reassessment.

Notice of Assessment / Notice of Reassessment

The latest assessment of tax for the year filed. The notice is mailed to the taxpayer and provides the taxpayer with the outcome of any review or audit affecting a tax return filed or simply acknowledges that a tax filing that has been accepted as filed.

Outside Consultant

A person hired by the CRA to provide an opinion to the Research and Technology Advisor.

Process review (for CRA internal
use only)

An alternate review technique that focuses on the claimant's process for identifying their SR&ED work (that is, their policies, procedures, organization and systems), rather than on individual projects.

RAPID

The CRA tax assessment information system for accessing non-T2 tax information.

Relevant

Anything supporting a claim or anything used to arrive at a decision.

Resolve

To resolve an issue in the context of the CRM means that the RTA has to make a decision on the outcome of the issue.

Statute barred

The normal reassessment period for a taxpayer is defined in section 152(3.1) of the Act. Reassessments are "statute barred" (that is, not legally allowed) beyond this period. Some exceptions apply.

Taxpayer

Defined in the ITA as "any person whether or not liable to pay tax". This term is used when the CRM refers to taxpayers in general, not just SR&ED claimants.

Technical review

An examination of an SR&ED claim by a Research and Technology Advisor.

T2020

The form which is used as a general-purpose log or diary by all CRA staff to record all conversations, decisions and actions concerning the file.

TD1170-000

The on-line training course for the SR&ED Program Staff.

TF98 file

A file folder for keeping all the information related to the Technical review.

Waiver

The act of a taxpayer who formally gives up certain rights under the Act. It usually applies either to the right to the normal reassessment period or the right to appeal.