Instead of making the R and D program much better, the governm
ent decided to make four changes: reducing the gener
al SR&ED tax credit from 20% to 15%; reducing the prescribed proxy amount, which taxpayers use to claim the R and D amount from overhead expenditures, from 65% to 55% of salaries and wages of employees who are engaged in R and D activities; removing the profit element from arm's length third-party contracts for the purpose of the calculation of R and D credits, by allowing only 80%
of the value to be ...[+++]counted toward eligible expenditures; and removing capital from the base of eligible expenditures for the purpose of the calculation of R and D. I could go on.
