Burlington Hive – We’ve Moved!

Burlington HiVE has recently moved to an expanded location to 901 Guelph Line, Burlington – on the South-East corner of Guelph Line and Harvester, one block south of the QEW. The move was made possible as local entrepreneur and founder of the HiVE, Shaun Pennell, collaborating with leading property development and management company, Emshih Developments Inc.

The new space offers members free parking, reduced membership rates, more meeting rooms, large separate presentation room (suitable for 40 attendees), much larger games room with pool table, including significantly larger kitchen and lounge.. The new space also provides potential growth by 30% with the property’s 18,000 sq. footage (up from 6,000sqft) and a possibility to expand to 100,000 sq. feet. This is a creative office that already has a unique energy, and is bringing the community even more vibrancy and growth.

HiVE members often collaborate with one another, making the HiVE the home base where new and established businesses alike can grow and thrive. It is not unlikely to see two people who were once strangers, now working alongside each other as business partners, clients or mentors. With the rapidly growing community membership, there are far greater opportunities for successful businesses and the happy humans that run them.

Join the community with memberships starting at $29/month. The drop in rate is $30/day.

 hive 2015 collage 2s

About the HiVE

Burlington HiVE is a shared co-working space, giving a working home to a community of entrepreneurs, freelancers, professionals and start-ups! The idea of the HiVE grew out of noticing the need to avoid the commute to Toronto and provide a creative place to work in the Halton Region. Burlington HiVE is the connecting space that brings both talented people and ideas together.

Founded in 2013, is a growing and thriving community of tech professionals, startups, freelancers and entrepreneurs. We offer a shared office space that encourages professional growth and collaboration while learning from other creative professionals in a fun and light co-working atmosphere.

Learn more about the Burlington HiVE here: www.burlingtonhive.com and follow us on-line @BurlingtonHiVE, or contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. and 905.592.2590. 

Kaylyn Gelata is the new, Community Manager at the, Burlington HiVE

What Constitutes Scientific Research and Experimental Development?

Tax Court of Canada's perspective on SR&ED eligibility criteria

The Tax Court of Canada recently ruled in favour of Les Abeilles with respect to a SR&ED claim denied by CRA. We thought the decision was worth highlighting, and expect that this ruling will impact how CRA will test SR&ED eligibility going forward.

The case came to trial in July 2013 after CRA rejected the claim on grounds that none of the claimed work met the definition of SR&ED eligibility: the work undertaken was standard practice and/or routine engineering with no technological uncertainty, no technological advancement nor any systematic investigation. CRA also cited a lack of contemporaneous documentation to corroborate the claimed work.

On October 23, 2014, Justice Gaston Jorré allowed an appeal to the Tax Court of Canada (TCC) made by Abeilles Service de Conditionnement Inc. Abeilles is located in the east end of Montreal and is 49% owned by General Electric. The company manufactures electric motors and other component subassemblies such as heating elements, control panels etc. used in household appliances.

The following three rulings by the judge are contrary to the usual stance taken by CRA to reject a claim.

Technological Advancement: The Court ruled that research does not have to lead to technological progress for it to be SR&ED. Work undertaken in the interest of technological progress, even if it fails, can still qualify. Additionally, increasing the productivity and flexibility of a process can constitute technological advancement. In determining whether there has been experimental development, the Court stated that one must consider the project as a whole rather than looking at each individual test or step separately. This ruling contrasts with the approach taken by CRA.

Technological Uncertainty: Criteria of technological uncertainty can be met by the taxpayer not knowing how to achieve some goal that is very specific to its situation. This is a clear distinction from the statement "Technological uncertainties may arise from shortcomings or limitations of the current state of technology that prevent a new or improved capability from being developed. It is the "no shortcomings or limitations of the current state of technology" reasoning that CRA auditors all too frequently cite in their assessments.

Other findings of note with respect to eligibility are as follows:

  1. Increases in productivity rate and flexibility of the process are acknowledged to constitute a "technological advancement".
  2. Projects should be assessed as a whole and across multiple years, not "de-constructed" until no eligibility remains.
  3. A diligent search by the taxpayer that shows a lack of information public domain with respect to how to achieve the outcome sought in the project, is adequate evidence of "technical uncertainty".
  4. The need to develop a commercially viable (i.e. cost effective solution) can be a factor of technological uncertainty with respect to SR&ED eligibility.
  5. Adjusting a manufacturing process can constitute "systematic investigation".
  6. Technological progress in the manufacturing process equates to "advancement".
  7. The requirement to develop a cost effective solution was a practical factor with respect to the criteria of technological advancement and technological uncertainty.
  8. While contemporaneous documents are needed to corroborate the occurrence of SR&ED, those documents need not have special content relating to SR&ED; it is sufficient to be able to cross link the work claimed to the timeframe of the claims.

The last part of the ruling would be interest to claimants familiar with the SR&ED audit process. CRA often uses internal staff as expert witnesses in court, including using the same staff members who denied the claim in question. In this case, the Court ruled that the CRA staff member appeared to be guided by CRA guidelines, including certain standards for proving facts which were not appropriate in his role as expert witness. The court found that the Crown's expert (a CRA employee) was not sufficiently impartial after the taxpayer objected that the he was not "independent". The court observed the expert's "confusion" between his duty to uphold the very CRA administrative policies that formed the basis of the original assessment and his role at court which is to "clarify" technical evidence so that the court can make its decision.

For more information, go to   www.cra-arc.gc.ca/txcrdt/sred-rsde/bts-eng.html  or contact Raj Phalpher at This email address is being protected from spambots. You need JavaScript enabled to view it.

raj 150x150Raj Phalpher, P.Eng, CMC, is the Chief Results Officer of Resultel Technologies Inc. Raj’s focus is exclusively on SR&ED tax credits since 2002. Previously he provided training, counseling, and support to some of the world's largest and most prestigious organizations in both the public and private sectors. Raj founded and chaired Emeritus of Toronto SPIN (Software Process Improvement Network) and is the Past-President of CIPS Toronto Chapter [2005]. Raj currently serves on several boards: GTA Chapter Board of the Canadian Association of Management Consultants [CAMC], Rotary Club of Oakville Trafalgar, Oakville Senior Citizens Residence and Shared Services International in addition to owning the Networking track of Silicon Halton monthly meetups. [ This email address is being protected from spambots. You need JavaScript enabled to view it. ] [LinkedIn] [Web]

 

Building Upon Milton’s Hidden Economy

The Milton Education Village (MEV) Innovation Centre is just completing its first fiscal year. With a soft opening in April, we became fully functional in September with the completion of Phase 2 of our construction. Over the fall we have seen interest in the facility grow with companies using our coworking space and leasing small flexible offices geared toward technology intensive firms.

MEV collage 3x

Our board rooms and meeting spaces are also proving to be quite popular and Wilfrid Laurier University has begun to hold lectures in its class room space.

Much of our early efforts have focused on communicating what the MEV Innovation Centre has to offer to the technology and small business community. We have not spent as much time talking about WHY we are doing this.

Simply put, Milton can’t rely on the type of economic growth we’ve seen during the last decade continuing. Given its location in the GTA, Milton has been very successful in attracting logistics operations and the large scale, and land consuming, facilities that they use. We are not complaining. This tax and assessment growth has allowed us to achieve a level of fiscal balance and the ability to provide the services needed to take care of the Town’s rapidly growing population.

Milton WarehouseHowever, the supply of land is not endless and we expect the majority of large sites to be used up over the next ten years. That’s why we are asking ourselves, “what next?”. Better to be thinking about this now than scrambling for an answer in 2024.

This takes us to what we are calling our hidden economy. It has two parts. First, Milton’s population is on average, the youngest in the GTA with an average age of 34 years. It is also highly educated and over 40 percent of the work force is employed in professional and technical occupations. This is a talent pool teaming with entrepreneurship. We estimate that there are already over 3,000 “home based” businesses in town.

Equally important, is the emergence of the Professional/Scientific/Technical sector as a driver of local economic growth. This sector created the most new companies, about 400, over the last five years.

Business Growth In Milton by Sector: 2009-2013A significant proportion of the companies in the sector are in the computer/systems design and engineering industries. Currently, there are about 1,200 small companies employing about 2,200 people.

We believe that building a more diverse economy will be driven to a large extent by entrepreneurship and the continuing growth of value-added service companies and jobs. The MEV Innovation Centre’s facilities, existing and future entrepreneurship programming is dedicated to achieving this objective.

About the Member Blogger

KyleBKyle Benham is the Coordinator at the MEV Innovation Centre in Milton, Ontario. Reach Kyle at This email address is being protected from spambots. You need JavaScript enabled to view it. .  Learn more about MEV at www.MEVInnovationcentre.ca

Meeting Spaces For Silicon Halton Members In Oakville

SiliconHaltonSpaces

As tech companies, and especially startups, we seem to be constantly searching for places to ‘hang our hats’.  We’re all more than comfortable working ‘virtually’, but we also know that there’s nothing like a face-to-face meeting with clients or investors when the time comes. 

At NEXED we’ve been lucky to be able to use a beautiful café in Bronte – Taste of Colombia – to host many events, demos and meetings. The café recently expanded and now offers an events room adjacent to it. It’s 850sq.ft with space for up to 60 people, wifi throughout, access to a digital projector and sound system, tables and chairs that can be arranged as you need them and free parking.  And of course, having a café right beside you has benefits that don’t need to be spelled out. 

Currently, Taste of Colombia is offering the space at a reduced rate for SH members. To book an event please contact Yurry Wu at 289.837.2031. And stay tuned for updates about a new SH meetup group on Fridays at the café - TGIF Tech. The first is scheduled for November 28th- 3-5pm. More details coming soon!

Sometimes a more formal and intimate atmosphere is required. Carolyn Moshtagh of AXXYR, also located in Bronte, is offering her boardroom to SH members who are looking for a quiet place for smaller meetings. Again, with access to whatever you may need to meet, demo and discuss. Contact Carolyn at 416.500.9195 to set up a time. 

So if you need to get out and about, these are two great locations in Bronte for SH members to call home- at least for a couple hours!

Silicon Halton Sponsors

Silicon Halton is a grassroots high tech community focused on Technology, Community, and Growth