If you run a small software company in Canada, you may be doing SR&ED-eligible work without realizing it.

I built this prompt to help you find out.

It researches the latest CRA guidance and free Canadian resources, then asks you a few simple questions about your company, your technology and the problems your developers are trying to solve.

It then assesses how closely your project appears to fit the SR&ED criteria, identifies what evidence you should document, and, where possible, provides a rough estimate of the potential tax benefit.

It’s not tax advice or a guarantee from CRA. Think of it as a quick SR&ED reality check before you call the accountant.

The Prompt

Could Your Canadian Software Company Qualify for SR&ED?

I run a small software company in Canada and want to find out whether our software development work may qualify for the Scientific Research and Experimental Development (SR&ED) tax incentive.

First, do some current research before asking me questions.

1. Find the latest Canadian guidance

Use reputable Canadian sources, prioritizing:

Canada Revenue Agency (CRA)
Government of Canada
Canadian government publications
Reputable Canadian accounting, tax and SR&ED specialists

Find the latest free introductory guides, templates, checklists, worksheets and application/claim resources available online.

Give me links to the most useful resources, but don’t overwhelm me. Start with the 3–5 resources most useful to a small software company.

Pay particular attention to current rules for software development, technological uncertainty, technological advancement, experimental development, eligible expenditures, documentation and record keeping.

Clearly identify the date of the information you’re relying on.

2. Interview me

Don’t give me a long questionnaire.

Ask me a few simple questions, one at a time, about:

The company

Where is the company located in Canada?
Approximately how many employees/developers do we have?
Are they employees or contractors?
What does the company actually build or develop?

The project

What are we trying to build or improve?
What technical problem are we trying to solve?
Why couldn’t our developers simply use known technology or standard programming techniques to solve it?
What were we uncertain about technically?
What experiments, prototypes, testing or iterations did we perform?
What did we learn?
Did we ultimately succeed, partially succeed, or abandon some approaches?

The money and records

Approximately how much developer salary/wages were associated with the work?
Were there contractor costs?
When did the work occur?
Do we have timesheets, tickets, Git commits, design documents, test results, technical notes or other evidence showing what the team actually did?

If I don’t understand a question, explain it in plain English and give me an example.

3. Assess the project

Based on my answers and the current CRA guidance, explain whether the project appears to contain the key characteristics of SR&ED.

Separate:

Strong evidence

Possible evidence

Missing information

Things that may make the claim difficult

Do not tell me that the work qualifies simply because it was innovative, difficult, expensive or involved software development.

Focus on the actual SR&ED criteria.

4. Give me a likelihood assessment

At the end, provide a simple assessment:

SR&ED likelihood

High / Moderate / Unclear / Low

This is not a prediction of whether CRA will approve a claim. It is an assessment of how closely the information I’ve provided appears to match the current published SR&ED criteria.

Explain the assessment in plain English.

Then give me:

What appears to support a claim
What I need to document
What questions CRA might ask
What information is still missing
What I should discuss with an SR&ED specialist or accountant

5. Estimate the potential value

If I provide enough information, give me a rough illustrative estimate of the potential SR&ED benefit.

Show your assumptions clearly.

For example:

Developer wages: $500,000
Potentially eligible portion: X%
Estimated qualifying expenditure: $X
Illustrative tax incentive: approximately $X

Do not present this as an entitlement or guaranteed refund. Explain that the actual benefit depends on the company’s circumstances, expenditure eligibility, claim methodology and current CRA rules.

6. Keep it practical

I don’t want a tax textbook.

At the end, give me a simple:

“What should I do Monday morning?” checklist