The Canada Revenue Agency (CRA) has issued a clarification on the qualification of outsourcing claims under the scientific research and experimental development (SR&ED) tax credit program. When claimants outsource work to third parties that they wish to claim under SR&ED, they must choose between the traditional and proxy methods for calculating overhead. They must also ensure that contracts for individual work fit the parameters of the legislation. If they opt to use the proxy method, contractual wording must show that the work is SR&ED-eligible and not services….