RE:RE:RE:RE:Latest video interviewGood post BLB0691!
In other very simple terms:
- The government is sharing the cost burden with canadian companies engaged in R&D in order for them to be competative.
- The government allows certain R&D costs to reduce the amount of taxes a company has to pay (That otherwise wouldnt qulaify)
- The government also gives the company money back on the taxes they paid for these R&D costs (Up to 35-40%)
A company like UAV (Novarial) where they have employees engaged in R&D might incur $200,000 in R&D expenses (Including salaries and wages). So imagine if all of that amount were eligible R&D expenditures; UAV would be able to use that $200,000 to reduce taxable income... In our case they have no income so guess what? They pay zero taxes! but it doesnt stop there. Additionally they would be able to get up to 35% back on that $200,000. So $70,000 gets refunded to them from the government just becasue thay're engaging in R&D.
So if you think that spending money on R&D is a waste, you're wrong.