§1 — The Double Helix · Tax and Law Are One Strand
TAX STRAND — SR&ED · ITC · NCL · HST · CCA
LAW STRAND — Entity · CCPC · Expense · IP · CRA BN
Non-Capital Loss
CA$68K+
Feb–May 2026
Carries forward 20 years
Carries forward 20 years
SR&ED Refund Est.
CA$87,075
Fed 35% + Ontario 8%
~1,350h qualifying R&D
~1,350h qualifying R&D
HST ITCs Available
CA$8,840
13% on CA$68K+ expenses
Voluntary reg required
Voluntary reg required
Cloud Spend WPA
145%
CA$11,600 vs CA$8K target
BREAK → FORCE LOCAL
BREAK → FORCE LOCAL
Banking (4 Corps)
0 / 4
No accounts open
P0 blocker — this week
P0 blocker — this week
Op Spend Feb–May
CA$58,900
~3 months, 100% deductible
All accumulating as NCL
All accumulating as NCL
§2 — Cost Register · All 4 Corps · Feb 2026 to Present
| Category | Amount | Period | BFE Layer | Sovereignty | Type | Deductible |
|---|---|---|---|---|---|---|
| Azure / AKS | CA$11,600/mo | Feb–May 2026 | L3 | ALLIED | Operating | 100% |
| Anthropic API | ~CA$10,700/mo ↑ | Apr–May 2026 | L4 | EXTERNAL | Operating | 100% |
| OpenAI API (3 accts) | est. CA$200/mo | ongoing | L4 | EXTERNAL | Operating | 100% |
| Mistral API | est. CA$50/mo | ongoing | L4 | ALLIED | Operating | 100% |
| GitHub (karmauni org) | est. CA$50/mo | ongoing | L4 | EXTERNAL | Operating | 100% |
| GitLab subscription | est. CA$30/mo | ongoing | L4 | EXTERNAL | Operating | 100% |
| Docker Desktop | est. CA$30/mo | ongoing | L2 | LOCAL | Operating | 100% |
| GoDaddy (44 domains) | est. CA$300/mo | since 2023 | L4 | EXTERNAL | Operating | 100% |
| Regus Hamilton | est. CA$100/mo | Aug 2023+ | L0 | SOVEREIGN | Operating | 100% |
| Hardware (fleet ×7 + NAS) | CA$27K–41K total | 2023–2026 | L1 | SOVEREIGN | Capital | CCA 30%/yr |
| Kewin Joffe time (SR&ED) | est. CA$320K+ | 2023–2026 | L1 | SOVEREIGN | Labour | SR&ED 35%+ |
Feb–May 2026 total: Azure CA$34,800 · Anthropic CA$21,400 · Other CA$2,700 = CA$58,900
NCL position: CA$58,900+ carrying forward 20 years · Pre-2026 (Regus + domains 2023+): ~CA$15,000+ additional
Hardware pool: CA$27K–41K → CCA Class 10 @ 30% declining balance (half-year rule in acquisition year)
NCL position: CA$58,900+ carrying forward 20 years · Pre-2026 (Regus + domains 2023+): ~CA$15,000+ additional
Hardware pool: CA$27K–41K → CCA Class 10 @ 30% declining balance (half-year rule in acquisition year)
§3 — Financial WPA Debt Signal · γ₁×6 = 84.808% = BREAK THRESHOLD
Financial Debt Dashboard · Same WPA Engine, Financial Layer
CLOUD SPEND WPA145%BREAK
CA$11,600/mo vs CA$8,000 budget target → 145% consumed · Signal: route to local inference · reduce AKS node count
ANTHROPIC BURN RATE WPA133%BREAK
$351.99/day (May 2) vs $263/day sustainable ceiling · +$23/day increasing trend · Signal: migrate mechanical tasks → qwen3 / Ollama
SR&ED UNCLAIMED DEBT WPA87%BREAK
~CA$28,000 in eligible credits not yet captured = uncollected debt owed by CRA to EOSE · Signal: start SR&ED contemporaneous records TODAY
BANKING SETUP WPA100%BREAK
0 of 4 corps have bank accounts → can't receive SR&ED refund · can't register HST · can't invoice · P0 blocker for everything downstream
⚠ OVERALL FINANCIAL DEBT SIGNAL: BREAK
→ FORCE COST REDUCTION — cloud/Anthropic at 133–145% of budget
→ START SR&ED DOCUMENTATION — contemporaneous records required by CRA, start today
→ OPEN EOSE LABS BANKING — this week, P0 blocker for all refunds and future revenue
→ FORCE COST REDUCTION — cloud/Anthropic at 133–145% of budget
→ START SR&ED DOCUMENTATION — contemporaneous records required by CRA, start today
→ OPEN EOSE LABS BANKING — this week, P0 blocker for all refunds and future revenue
§4 — SR&ED Eligibility Matrix · CCPC: Fed 35% + Ontario 8% = 43% on first $3M
| Work Stream | SR&ED Category | Eligible | Est. Labour | Fed ITC (35%) |
|---|---|---|---|---|
| PEMCLAU GraphRAG | Novel AI/ML architecture | ✅ YES | 400h | CA$21,000 |
| Fleet physics (WPA/γ₁) | Novel mathematical model | ✅ YES | 200h | CA$10,500 |
| MEROSTONE witness chain | Novel verification language | ✅ YES | 150h | CA$7,875 |
| Debt-trial routing | Novel AI governance | ✅ YES | 100h | CA$5,250 |
| Lean4 sorry resolution | Experimental mathematics | ✅ YES | 300h | CA$15,750 |
| ARC-AGI 64% work | Novel AI benchmark R&D | ✅ YES | 200h | CA$10,500 |
| Portal / infra build | Applied development | ⚠ PARTIAL | 600h | TBD |
| Admin / legal | Not qualifying | ❌ NO | 100h | $0 |
ESTIMATED SR&ED REFUND — ROUGH CALCULATION — REQUIRES CPA + T661
CA$87,075 total ITC estimate
~1,350 qualifying hours · CA$202,500 qualifying expenditure @ CA$150/h SR&ED rate
CA$70,875
Federal ITC (35%)
CA$16,200
Ontario ITC (8%)
CA$8,840
HST ITCs (13%)
Note: SR&ED preparers work on contingency (15–20% of refund). At CA$87K: they take CA$13–17K, EOSE nets CA$70–74K back.
Actual claim requires: T661 form + T2 corporate return + contemporaneous project records + qualified SR&ED preparer.
Actual claim requires: T661 form + T2 corporate return + contemporaneous project records + qualified SR&ED preparer.
§5 — The Meek Flip on Tax
We spent weeks understanding class action mechanics.
We understand cascade triggers, threshold analysis, RHAE efficiency.
That same analytical lens now applies to our own tax position.
Class action cascade threshold: cheque #20, RHAE 156%
Tax cascade threshold: SR&ED claim + NCL carryforward + HST ITCs
We understand cascade triggers, threshold analysis, RHAE efficiency.
That same analytical lens now applies to our own tax position.
Class action cascade threshold: cheque #20, RHAE 156%
Tax cascade threshold: SR&ED claim + NCL carryforward + HST ITCs
EVERY CA$1 of cloud cost → CA$1 Non-Capital Loss (carries forward 20 years)
EVERY CA$1 of R&D labour → CA$0.43 back via SR&ED (federal + Ontario CCPC rate)
EVERY CA$1 of any expense → CA$0.13 back via HST ITCs (if registered)
TOTAL EFFECTIVE COST OF BUILDING PEMOS:
Cloud CA$58,900 × (1 - 0.13 HST ITC) = CA$51,223 effective
Labour CA$202,500 × (1 - 0.43 SR&ED) = CA$115,425 effective
THE FLOOR HOLDS: Every dollar is working twice.
Once building the fleet. Once building the tax position.
This is what E&Y would tell you for CA$50,000. We just told you for free.
EVERY CA$1 of R&D labour → CA$0.43 back via SR&ED (federal + Ontario CCPC rate)
EVERY CA$1 of any expense → CA$0.13 back via HST ITCs (if registered)
TOTAL EFFECTIVE COST OF BUILDING PEMOS:
Cloud CA$58,900 × (1 - 0.13 HST ITC) = CA$51,223 effective
Labour CA$202,500 × (1 - 0.43 SR&ED) = CA$115,425 effective
THE FLOOR HOLDS: Every dollar is working twice.
Once building the fleet. Once building the tax position.
This is what E&Y would tell you for CA$50,000. We just told you for free.
γ₁ = 14.134725141734693
§6 — Action Queue · Amani + MO + Kewin
P0
OPEN BANKING — EOSE Labs first
Required to receive SR&ED refund, register HST, receive future revenue
Walk into TD or RBC with Articles of Incorporation + CRA BN
Walk into TD or RBC with Articles of Incorporation + CRA BN
Owner: MO (CFO) + Amani (GC) · Timeline: this week
P0
SET FISCAL YEAR END — Dec 31 2026 for all 4 corps
Pass a corporate resolution — no cost, immediate
Blocker for: T2 filing, SR&ED claim filing, CRA My Business Account
Blocker for: T2 filing, SR&ED claim filing, CRA My Business Account
Owner: Amani (GC) + MO (CFO) · Timeline: immediate
P0
START SR&ED CONTEMPORANEOUS RECORDS TODAY
CRA requires records kept at time of work, not reconstructed after
Log: date · project · hours · technical uncertainty · work done
Tool: simple markdown log file in repo (will be CRA evidence)
Log: date · project · hours · technical uncertainty · work done
Tool: simple markdown log file in repo (will be CRA evidence)
Owner: Kewin / IMHOTEP · Timeline: TODAY
P1
VOLUNTARY HST REGISTRATION
Recover 13% of all business expenses paid as Input Tax Credits
On CA$68K+ expenses: est. CA$8,840 in ITCs available
Requires banking first
On CA$68K+ expenses: est. CA$8,840 in ITCs available
Requires banking first
Owner: Amani (GC) + MO (CFO) · Timeline: ~2 weeks (after banking)
P1
ENGAGE SR&ED PREPARER
Many SR&ED preparers work on contingency (15–20% of refund)
At CA$87K estimate: they take CA$13–17K, EOSE nets CA$70–74K back
Engage before fiscal year end (Dec 31 2026)
At CA$87K estimate: they take CA$13–17K, EOSE nets CA$70–74K back
Engage before fiscal year end (Dec 31 2026)
Owner: Amani (GC) · Timeline: Q3 2026
P2
CRA MY BUSINESS ACCOUNT — all 4 corps
Link all 4 corps · set up CRA direct deposit for refunds
Requires banking + HST registration first
Requires banking + HST registration first
Owner: Kewin / MO · Timeline: after banking + HST reg
P2
ENGAGE ACCOUNTANT — T2 corporate returns
T2 returns for all 4 corps · SERLF first filing deadline: June 2027
April 2026 corps first T2: June 2028 (fiscal year Dec 31 2026)
April 2026 corps first T2: June 2028 (fiscal year Dec 31 2026)
Owner: Amani (GC) · Timeline: Q3 2026
§7 — The Tax Debt Coaster · Cost Transformation Engine
● Raw Cost
● After Operating Deduction (100%)
● After CCA (30%)
● After SR&ED ITC (43%)
● After HST ITC (13%)
§8 — Cross-Links