One bad experience should not tarnish an entire national ecosystem. There are incubators like GrowLabs and FoundersFuel who offer terms that are on par or better than YC, and there are investment firms that have invested hundreds of millions of dollars into Canadian startups over the past few years, and SR&ED claims seem to function smoothly for all our portfolio companies. I obviously don't know the details of your particular case, but don't mistake it for the status quo.
Well that's nice for them, but for me I’ve received a much warmer welcome from Silicon Valley, including first class flights, an office, and funding for several years of development.