Hal Richman provides advisory services for firms applying for the Digital Media Tax Credit (DMTC) and the Digital Animation Tax Credit (DATC). As well, he acts as an agent to submit the tax credit applications on behalf of the applicant.
Hal has in-depth experience and expertise in financial and management accounting via his training as a Certified Management Consultant; managing the financial and management accounting for several businesses for the last 25+ years; and developing numerous business plans involving complex budgets and financial projections.
Through his successful work for firms in Nova Scotia such as Alpha Dog Games, Binogi Canada, Blue House Energy, Gamemode One, Maritime Digital Art and Design, Puzzle Finch Games, Styrax Studios Inc., Vesuvius Media, Visnea, XR and D Engineering and ZeniMax Halifax Hal Richman has developed a detailed understanding of the rules and requirements for the tax credits. Hal has filed $5.5M of approved Part B applications since 2016.
Work tasks include
Complete the DMTC application workbook.
Payroll
- Summarize total FY employee salaries from biweekly or monthly payroll registers
- Deduct NS R&D tax credits from salaries and note Federal SR&ED as Government Assistance
- Ensure all taxable items are included in the reported salaries and salaries align with the T4s for firms with FYE 31 Dec.
- Based on timesheets, develop a worksheet that shows the % of labour applied to each product for each employee and calculate the portion of salaries allocated to the product(s).
- Ensure that the employee address on the T4 is the same as the payroll records and that all T4s show employees residing in Nova Scotia.
Ensure that:
- The Certificate of Election or statement of IP ownership has the correct product name and version,
- Employee Declarations of Residency have the correct dates or evidence of residency is provided for employees who moved to Nova Scotia in the calendar year during which salaries are being claimed.
- Invoices from Nova Scotia subcontractors have the required information and Statements of Eligible Remuneration are correct and signed.
- The GANTT chart has the same begin/dates for development and marketing as the application workbook.
- The synopsis of product and video of game play linked to the synopsis clearly show interactivity (control, feedback, adaptation) using the proven template provided.
For DMTC <$100k Total Expenditures, ensure that the Product Affidavit is correct and signed by a commissioner or notary
For DMTC >$100k Total Expenditures, complete the pre-audit checklist to reduce level of effort by the auditor, submit all documents to the auditor, and address all questions from the auditor.
Submit all documents to the Nova Scotia Department of Finance and address all questions from the Nova Scotia Department of Finance.