With a annual budget of nearly 7 billion eurosResearch and innovation tax credits (CIR and CII) represent a major challenge for innovative companies. Visit auditing departments are increasingly strict about the relevance of the arguments used to prove eligibility for the criteria..
For guidance, here are the 3 main pitfalls identified by controllers for which a structured argumentation is necessary to provide admissible evidence and secure your tax credit in the long term.
- Going beyond the state of the art for the CIR or outperform the competition for CII
Simply claiming to meet an eligibility criterion is not enough. important to prove it objectively in :
- providing bibliographical references representative of available knowledge in the field for the CIR: we often talk about the state of the art accessible to the skilled person;
- detailing product characteristics representative of today's market for CII, including competitor names, product names and measurable performance data.
- Describing the experimental approach (CIR) or design (CII)
In addition to providing the results needed to understand the success - or otherwise - of the project, the description of the work must above all demonstrate the method used and the approach followed.
This description not only check the consistency of declared working hoursbut also confirm that the company has developed a specific approach that it can capitalize on.
In other words, it proves that the the path taken required a phase of discovery (for the CIR) or creativity (for the CII)regardless of any differences from what already exists.
It is essential to provide detailed description of in-house and subcontracted work, the costs of which have been included in the tax credit calculation research and innovation (CIR/CII). This approach makes it possible to justify the importance of using an external service provider as part of the company's research and innovation activities.
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- Justify project team involvement
When it comes to demonstrating personnel qualification (CVs, diplomas, job descriptions...) to carry out research or innovation work, it is essential to be able to relate each team member to the main tasks or jobs described. This shows how each has made a significant contribution to the project's R&D or innovation process.
To help you in this process, G.A.C. group has developed l'MyInnoTime application a to make it easier for you to track days worked by project and by employee.
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In short, it is essential to compile a complete, compliant technical file to avoid any risk of challenge from the tax authorities. In fact, whatever the content of subsequent discussions during an audit, the first impression gained from reading the technical file will tend to have a lasting influence, both positive and negative.
To find out more about how to structure and organize your sales pitch to secure your declaration, view the replay of our webinar on the subject :
With over 20 years' expertise in the CIR and CII, G.A.C. Group has developed a range of support services to meet your needs and secure your tax credit, making it a sustainable source of financing for your innovation.
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Article written by
Axel MERLIN
Innovation Business Manager at G.A.C. Group
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