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An SR&ED tax specialist helps entrepreneurs deal with research and development tax credit programs.
Pascal Perreault is a Partner and SR&ED Tax Specialist with Raymond Chabot Grant Thornton. He provides some insight into his work.
What is scientific research and experimental development (SR&ED) tax?
It’s a specialization related to the Scientific Research and Experimental Development tax credit program. This is one of the main tax incentive programs that my team works with. We deal with tax credit applications for our corporate clients, most of whom are in the aerospace, IT and life sciences sectors.
How have you progressed within Raymond Chabot Grant Thornton?
I gained experience in accounting services firms as a tax professional and then I co-created an SR&ED business. It was acquired by Raymond Chabot Grant Thornton in 2015. I joined the group and became one of the Partners. It is a major asset to be surrounded by complementary expertise. It allows us to support our clients in other areas of business and provide more complete service.
What is your usual day like?
I handle the management and prospecting functions. In this regard, my work is different from that of the rest of the team. I also approach organizations such as Montréal International and Investissement Québec to attract foreign investors to Quebec or the greater Montréal area. This is an important part of my activities.
In addition, as SR&ED tax specialists, we deal with the presidents of small and medium-sized companies or with the technical and financial departments of large ones. We make sure that research and development projects are properly documented throughout the year so they meet the requirements of the tax authorities that our team contacts on a regular basis.
Can you give us an example of a typical assignment?
When a new client comes on board, in collaboration with the engineers on our team, we conduct an analysis of the potential to claim tax credits for their projects.
First, we gather information from the engineers who have gained in-depth knowledge of the technologies used, and then prepare the tax credit claim. Project tracking systems are established and allow us to respond to the tax authorities in the event of an audit.
The tax specialists also work with corporate financial managers to collect other essential information for the preparation of the tax forms.
What is most motivating in your work?
I truly enjoy serving our clients and I feel that our work makes a real difference, especially for SMEs. For example, when I help an entrepreneur start a business by obtaining a $100,000 tax credit that allows the client to develop a product, the impact is noticeable and measurable.
Is there a professional accomplishment that you are particularly proud of?
Recently, we went to court to represent a client in a dispute with Revenu Québec and won. It’s motivating to win cases, especially when they become precedents.
But it’s rare that cases go to court, because we have cordial and collaborative relationships with the SR&ED tax authorities. We are well versed in the laws and, in our work, while there is obviously a tax compliance component, there is also a desire to help the taxpayer.
What qualities do you need to do SR&ED work well?
You need discipline and communication skills because, in our specialty, we are in regular contact with the tax authorities. You have to be able to convince them of the validity of what you are saying. That’s what we do every day.
At Raymond Chabot Grant Thornton, we have managed to build a solid reputation with Revenue Canada. They know that we have sound arguments to support a claim, even if we sometimes disagree on an interpretation.
We are also called upon to participate in various panels, such as that of the Association de planification financière et fiscale du Québec. This allows us to maintain a high level of credibility with our peers and, above all, with the people from the revenue agencies, with whom we discuss our clients’ projects.
What is the work climate like in your team?
The work has to be delivered on specific dates, so it’s up to each person to see how they organize their work, according to the schedule that suits them. Working in a team is an important value and I am surrounded by competent people who interact a lot in an atmosphere that I strive to keep enjoyable and positive.
What advice do you have for a tax specialist who might want to work in SR&ED?
Working in general tax before gave me a solid foundation and allowed me to develop the right reflexes, so I think you should do that before specializing.