What the data shows and what it does not (brief) | Research Credit Integrity Alliance

Key points

Only HMRC publishes a measured rate of error and fraud in R&D relief, based on random enquiries: 6.4 percent of the cost of the reliefs for 2023 to 2024.1
The CRA publishes yearly SR&ED outcomes: of 23,677 claims processed in 2025 to 2026, 90 percent were accepted as filed, 6 percent after modifications and 4 percent denied.2
The IRS publishes no current research credit error, examination or adjustment figures in the sources reviewed, and its SOI research credit tables end with 2014.3
No authority publishes data linking claim outcomes to how the preparer was paid.

United States

The IRS Statistics of Income tables on corporations claiming the research credit run to tax year 2014.3 The IRS has said it examines research credit claims "in a substantial number of cases" without giving numbers.4 The most detailed published examination data is from GAO in 2009: for a panel of large corporations, examiners recommended reductions of 16.5 to 27.1 percent a year in credits claimed for 2000 to 2003.5 In 2026 TIGTA found 40 businesses that claimed the payroll version of the credit for 2023 without meeting the gross receipts test, together claiming $3.1 million.6 No current figure on research credit error, examination coverage or adjustment was found. Form 6765 does not ask how the preparer was paid.7

United Kingdom

HMRC began random enquiries because its understanding of non-compliance "was incomplete". For 2021 to 2022 it found around half of SME claims non-compliant in part or in full, and estimated error and fraud at 17.6 percent.8 Its revised estimate for 2023 to 2024 is 6.4 percent overall and 11.1 percent for the SME scheme.1 In 2023 to 2024 it opened 9,700 compliance checks, 17 percent of claims received, recovered £441 million, and found that 77 percent of checks required an adjustment.8 Those checks were on claims HMRC selected, so the adjustment rate is not an error rate. Non-compliance by value was 28 percent for claims made with a specialist R&D agent and 21 percent without, but HMRC's data does not distinguish how agents were paid.8

Canada

The CRA reports the outcomes of SR&ED claims processed each year. From 2021 to 2022 to 2025 to 2026, between 90 and 91 percent were accepted as filed, 6 percent accepted after modifications, and 3 to 4 percent denied.2 For 2025 to 2026 it reports $4.9 billion of investment tax credits claimed and $4.6 billion allowed.2 These are processing outcomes, not error estimates, and the page does not define what counts as a modification. Form T661 asks each claim preparer's billing arrangement and fee, with a code for a contingency fee based on a percentage of the credit, but no statistics drawn from those answers were found.9

Ireland and Singapore

Revenue publishes the number of companies claiming the R&D corporation tax credit and its cost: 2,165 companies and €1,263 million for 2024.10 No Revenue figures on review outcomes were found. IRAS reported that in 2018, 83 percent of SME claims processed were granted full benefits and 6 percent were adjusted.11 No later figures were found.

Why the figures cannot be compared

HMRC's error estimates come from random samples meant to represent all SME claims. Compliance check results come from claims selected for review. The CRA figures are processing outcomes. Each country's rules and years differ. A higher rate in one country may reflect selection, rules or administration as much as claim quality.12

What the record shows

One authority measures error across all claims; one publishes regular processing outcomes; and Ireland, Singapore and the United States publish little or nothing current on outcomes. HMRC described its understanding as incomplete before it measured.8 Canada alone collects how preparers are paid.9 No authority reviewed publishes data that would show whether claims prepared under contingent fees fare differently on review.

References

HM Revenue and Customs, Annual Report and Accounts 2025 to 2026 (July 2026), "Corporation Tax research and development tax relief error and fraud" (page 107). https://assets.publishing.service.gov.uk/media/6a4f66c406e7256c331df8a2/HMRC_annual_report_and_accounts_2025_to_2026.pdf (accessed 11 October 2026). Back
Canada Revenue Agency, Annual program statistics, SR&ED tax incentive program (date modified 30 April 2026). https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/annual-program-statistics.html (accessed 11 October 2026). Back
Internal Revenue Service, SOI Tax Stats: Corporation research credit (page last reviewed or updated 9 November 2025). https://www.irs.gov/statistics/soi-tax-stats-corporation-research-credit (accessed 11 October 2026). Back
Internal Revenue Service, IRS sets forth required information for a valid research credit claim for refund, News release IR-2021-203, 15 October 2021. https://www.irs.gov/newsroom/irs-sets-forth-required-information-for-a-valid-research-credit-claim-for-refund (accessed 11 October 2026). Back
US Government Accountability Office, Tax Policy: The Research Tax Credit's Design and Administration Can Be Improved, GAO-10-136 (November 2009), pages 14 to 15. https://www.gao.gov/assets/gao-10-136.pdf (accessed 11 October 2026). Back
Treasury Inspector General for Tax Administration, Controls for the Qualified Small Business Payroll Tax Credit Were Updated, but Ineligible Taxpayers Continue to Receive the Credit, Report No. 2026-408-012 (15 April 2026), Highlights. https://www.tigta.gov/sites/default/files/reports/2026-04/2026408012fr.pdf (accessed 11 October 2026). Back
Internal Revenue Service, Instructions for Form 6765 (Rev. December 2025), Sections A to G. https://www.irs.gov/instructions/i6765 (accessed 11 October 2026). Back
HM Revenue and Customs, Approach to Research and Development tax reliefs 2023 to 2024 (published 30 October 2024), sections 1.1, 1.2 and 2.4 (Table 4), and Annex B, Theme 5 and Tables B.4 and B.5. https://www.gov.uk/government/publications/hmrcs-approach-to-research-and-development-tax-reliefs-2023-to-2024/approach-to-research-and-development-tax-reliefs-2023-to-2024 (accessed 11 October 2026). Back
Canada Revenue Agency, Form T661, Scientific Research and Experimental Development (SR&ED) Expenditures Claim, T661 E (26), Part 9. https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/t661/t661-26e.pdf (accessed 11 October 2026). Back
Revenue Commissioners, Corporation Tax: 2025 Payments and 2024 Returns, section 3.5 and Table 27. https://www.revenue.ie/en/corporate/documents/research/ct-analysis-2026.pdf (accessed 11 October 2026). Back
Inland Revenue Authority of Singapore, Research & Development (R&D) Tax Measures (last updated 13 August 2026). https://www.iras.gov.sg/taxes/corporate-income-tax/income-deductions-for-companies/business-expenses/research-development-(r-d)-tax-measures (accessed 11 October 2026). Back