Dhaliwal Reports Progress On Research And Development Tax Credit Action Plan

Ottawa, June 17, 1999…The Honourable Herb Dhaliwal, Minister of National Revenue and M.P. (Vancouver South-Burnaby), today reported on the progress that Revenue Canada has made in completing the steps called for in his Action Plan to improve the Scientific Research and Experimental Development (SR&ED) program.

Specifically, Mr. Dhaliwal summarized several accomplishments since the last progress report delivered in March 1999:

  • A consulting firm, Stitt Feld Handy Houston ADR of Ottawa and Toronto, has been selected to develop a dispute resolution system for the SR&ED program.
  • Through a joint industry/government initiative, Jean Claude Gavrel, a software specialist with extensive industry experience, has been retained for SR&ED’s National Technology Sector Specialist (NTSS) program. Mr. Gavrel is an Information Technology executive with more than 20 years of experience in managing and implementing high technology product development and research programs. Other specialists will be identified in the future to supplement the Department’s technology experience.
  • The SR&ED program is being reorganized to bring Headquarters and field offices under one program head. Consultations with all regional offices have been completed and a framework has been established to strengthen the focus on the science and incentive aspects of the program.

Mr. Dhaliwal announced his Action Plan in a document entitled Building Partnerships in November 1998. The Action Plan responded to concerns and recommendations received from the industry at a Vancouver conference in June 1998. A key component of the Action Plan has been the establishment of a Steering Committee composed of industry representatives. The Steering Committee meets frequently to monitor progress of the Action Plan and to co-ordinate industry sector-specific working committees.

“With the progress made to date and with continued support from industry, Revenue Canada is on track to have a totally revitalized SR&ED program by the end of this year,” Mr. Dhaliwal said.

The Minister added that the SR&ED program now delivers about $1.4 billion of federal assistance to Canadian business, and the number of participants nationwide has been growing at about 13% each year. The Minister also reiterated the commitment made in the last federal budget to invest more than $1.8 billion by 2003 to build on the knowledge and innovation initiatives introduced in previous budgets.

The action plan and SR&ED program information are available on Revenue Canada’s Web site at: www.ccra-adrc.gc.ca/ Businesses interested in the SR&ED program should contact:

Norine Heselton
Director General
Tel.: (613) 946-3447

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