With experience in one hand and a passion for technology in the other, TSGI Corporation (‘TSGI’) occupies a unique vantage point on the Canadian energy industry landscape. Scientific Research & Experimental Development (‘SR&ED’) specialists, TSGI helps organizations across Canada benefit from the >$3B/yr government tax credit program. Located in Calgary, TSGI works with companies in numerous sectors to secure these tax incentives as support for their research and development (R&D) activities. Having built a broad portfolio of dedicated clients, TSGI has demonstrated time and again their commitment to quality and ever-evolving expertise. “We have been at the leading edge of oilfield innovation and the SR&ED program for over two decades,” says Michael Bosdet – President of TSGI.
Understanding SR&ED Needs
The SR&ED tax incentive program, administered by the Canada Revenue Agency (CRA), provides R&D funding to a range of companies including those in the Oil and Gas, Technology and broader Energy sectors; however, the application process for funding can be complex and time-consuming and is not guaranteed. That’s where TSGI steps in. As SR&ED has specific criteria that can be overwhelming for a company unfamiliar in the technicalities of meeting both the scientific and financial criteria of the program, TSGI’s professionals meet with their clients’ technological and financial staff to gain insight into their development efforts, specific challenges, and the associated costs. From there, TSGI is able to effectively support their clients because of their in-depth understanding of not only the client’s R&D efforts but also the specific financial considerations, including the impact of differing corporate structures. “SR&ED can be a huge burden for our client’s internal teams,” emphasises Bosdet. “We want to come in and offload all the work from the clients and take on the heavy lifting. Our clients are world-experts in their technology and need to stay focused on getting their product to market. We are experts in SR&ED so our clients don’t have to be.”
Of particular interest for TSGI’s Oil and Gas clients is the common misunderstanding about these applications with regards to Exploration and Production (E&P) companies not being eligible to apply for SR&ED funding. In actuality, with specific aspects they do qualify. “It’s about looking beyond the commercial drivers and understanding the underlying science,” states Bosdet. “We help to educate [our E&P clients] about how they can [apply], and have successfully recovered well over $100M for E&P companies in the last several years.”
SR&ED Expertise for Client Advantage
In addition to thoroughly understanding their clients’ individual needs, TSGI differentiates itself from other firms who provide SR&ED services because of their experience and willingness to dig into complex issues. “We have examples of successful multi-million dollar claims for our clients where their joint venture partners failed to make a claim because of complex corporate structures or regulatory frameworks,” expresses Bosdet. “We have the expertise to dig in and make the best call for our clients.”
With their expertise, the firm has become a recognized leader in Western Canada for SR&ED services as a result of the training and education among their employees. All of their accountants are accredited CPA’s and all technology advisors have a PhD or MSc in Engineering. “With over 80 years of combined SR&ED experience and clients of all sizes operating in numerous technology sectors, we have a great breadth of knowledge and experience,” says Bosdet. It’s because of this expertise that TSGI has been invited to Ottawa to testify on SR&ED matters before the House of Commons Standing Committee on Finance, and was previously an instructor of SR&ED for the Institute of Chartered Accountants of Alberta. In terms of the Oil and Gas industry specifically, TSGI has seen first-hand many of the technologies that have redefined the space. “From hydraulic fracturing to milling-while-drilling, SAGD to IoT, we’ve helped support these technology advances from the early days. It really makes our jobs exciting.”
Over and above their expertise, it’s TSGI’s dedication to their clients that has earned them a reputation of reliability. According to Bosdet, “Our company has grown organically almost exclusively through referrals.” Thriving on a strong partnership model, the majority of TSGI’s clients engage on a success-only model, meaning that TSGI will only put forth claims that the company believes will be successful in receiving approval for their application, and is only paid when successful. “Trust is earned by aligning our interests with those of our clients, so we only win when our client wins,” says Bosdet. This model is not only attractive for start-ups, but in the current economy even large companies appreciate that there is no up-front payment. The commitment TSGI brings to their clients’ SR&ED applications demonstrates their focus on building partnerships based on trust and expertise. And, having represented hundreds of clients in Alberta, TSGI has demonstrated the difference that high-quality work and a clear understanding of how to strategize all aspects of SR&ED can make for their clients.
Having earned their reputation as a well respected thought leader, TSGI will continue to build strong relationships while supporting clients throughout their technology development.