20
Third Session, 47th General Assembly 63 Elizabeth II, 2014
BILL 20
AN ACT TO AMEND THE INCOME TAX ACT, 2000 NO. 2
Received and Read the First Time.................................................................................................
Second Reading.................................................................................................................................
Committee..........................................................................................................................................
Third Reading.....................................................................................................................................
Royal Assent......................................................................................................................................
HONOURABLE CHARLENE JOHNSON Minister of Finance and President of Treasury Board
Ordered to be printed by the Honourable House of Assembly

EXPLANATORY NOTE

This Bill would amend the Income Tax Act, 2000 to provide for a tax credit in respect of a qualifying investment in a qualifying venture capital fund.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000 NO. 2

Analysis

1. S.46.2 Added
Venture capital tax credit

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

SNL2000 cI-1.1
as amended

1. The Income Tax Act, 2000 is amended by adding immediately after section 46.1 the following:

Venture capital tax credit

46.2 (1) A qualifying investor, or a person acting on behalf of a qualifying investor, may apply to the minister for a tax credit in respect of a qualifying investment in a qualifying venture capital fund.

(2) The minister may give a tax credit to a qualifying investor who applies under subsection (1) or on whose behalf an application is made under subsection (1).

(3) A tax credit given under subsection (2) shall be calculated in the manner prescribed by the regulations.

(4) A tax credit shall be deducted against the tax which is otherwise payable under this Act.

(5) The Lieutenant-Governor in Council may make regulations

(a) establishing the criteria for determining who is a qualifying investor, what is a qualifying venture capital fund and what investments are qualifying investments;

(b) respecting the issuance of and the grounds for revocation of certificates of qualification to qualifying venture capital funds;

(c) limiting the amounts which a qualifying venture capital fund may raise through the use of credits;

(d) prescribing how funds raised may be used by a qualifying venture capital fund;

(e) respecting the wind-up and dissolution of a qualifying venture capital fund;

(f) respecting the manner of calculating the amount of a tax credit that may be paid to a qualifying investor;

(g) setting limits on the amounts of qualifying investments;

(h) respecting the carrying forward or back of a credit;

(i) respecting the holding period for a qualifying investment;

(j) prescribing penalties for failure to comply with the regulations; and

(k) generally to give effect to the purpose of this section.

(6) This section does not apply to labour-sponsored venture capital tax credits referred to in section 45.1.

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