[mdtusz]

I know many will disagree, but I think the commentary on SR&ED killing momentum and motivation in startups is bang on, even though it's a nearly impossible thing to measure or quantify. I'm sure many fellow Canadians reading this comment can relate to the absolute draining feeling when you see that message "remember to update your SR&ED timesheets by the end of the week!".

Time tracking isn't inherently bad, or counterproductive, but I haven't once come across a startup that does their SR&ED reporting with an ounce of honesty. Timesheets are essentially fabricated based on either what the developers think their managers expect to see, or based on what the managers tell them to fill in, and it's entirely understandable - programming is not a job where tracking hours makes sense.

Rather than timesheets, it would make _so_ much more sense if instead, high level but detailed quarterly reports were made outlining what was completed, and if there needs to be more detail, an audit can be done. Timesheets kill productivity, motivation, and curiosity to try new things and accomplish actual research and development - what the SR&ED program is intended for. At the end of the day, it's the implementation of the program and the industry of consultants surrounding it that is flawed.

[jariel]

That's nice, but it doesn't explain why SR&ED is bad.

If the reporting was crazy burdensome - ok - but that doesn't seem to be the case.

The article makes the impression that it's more like a 'welfar trap' type scenario.

In my view, it's just not relevant, the money just doesn't matter that much. Good projects tend to get funded.

[MattGaiser]

And all the time wasted on SR&ED. My manager is constantly pulled away to fill out some document to do with it.

[danbolt]

I can't tell if the worst part of SR&ED is management pulling you away to document your work for tax credits or management hoping you'll lie about your work for tax credits.