Introduced at the beginning of 2014, First Time Claimant Advisory Service (FTCAS) reviews are a complimentary service that the CRA provides for first-time SR&ED claimants. They are meant to be educational and conversational so that every new claimant has a better understanding of what the CRA looks for in a SR&ED claim.

If selected for a FTCAS, a SR&ED reviewer will come to your office and provide advice on:

• How to identify potential eligible work in the context of your business;
• How to identify allowable expenditures;
• Types of documentation and other evidence that could support a claim; and
• How to complete and file future SR&ED claims.

Before we go any further, we should remind you that FTCAS meetings are not to be confused with the CRA Reviews we previously mentioned. CRA Reviews are much more elaborate as they determine whether to approve or deny the details of your SR&ED claim.

What Should You Expect?

Based on FTCAS meetings we've attended with our clients, here's what you can expect before, during and after the meeting.

Before the meeting: The CRA will coordinate a time for the SR&ED Reviewer to visit your office and meet with your team and/or SR&ED advisor. Be sure to allocate 4 hours (at most) for the meeting.

During the meeting: The meeting can take anywhere from 2 to 4 hours. Your SR&ED Reviewer may be a recently employed junior employee or could be an advanced SR&ED Reviewer who has been with the CRA for over 10 years. Either way, they typically cover four main areas:

• Review what the SR&ED program is
• Review the technical requirements for SR&ED and the extent of eligible work
• Review the financials for your SR&ED claim
• Review your SR&ED claim from a technical perspective

Be sure to answer the Reviewer's questions as directly as possible; you don't need to dive into the technology or process in elaborate detail if they don't ask for that information. If they do need more info, they will be sure to ask.

After the meeting: After the meeting, your Reviewer will put a report together with written recommendations on what to improve for next claim. After you receive the report, you will receive your official Notice of Assessment (NOA) for your SR&ED claim.

How Should You Prepare?

1. Review your hypothesis and the technical challenges with your team
2. Review what was known and what was unknown when your team began the project. This includes tools, methodologies, etc.
3. Discuss the submitted claim with your SR&ED advisor. (They can attend the meeting as an extra resource)