NEWFOUNDLAND AND LABRADOR REGULATION 95/11

NEWFOUNDLAND AND LABRADOR
REGULATION 95/11

Direct Equity Tax Credit Regulations (Amendment)
under the
Income Tax Act, 2000
(O.C. 2011-280)

(Filed October 25, 2011)

Under the authority of subsection 46(5) of the Income Tax Act, 2000 the Lieutenant-Governor in Council makes the following regulations.

Dated at St. John's, October 21, 2011.

Robert Thompson
Clerk of the Executive Council

REGULATIONS

Analysis

NLR 26/01
as amended

1. Paragraph 2(e) of the Direct Equity Tax Credit Regulations is repealed and the following substituted:

(e) "eligible business" means an active business that

(i) is incorporated under the laws of the province, another province of Canada or of Canada,

(ii) is Canadian controlled,

(iii) is not a publicly traded corporation,

(iv) has a permanent establishment in the province,

(v) has less than $20,000,000 in assets, including assets of associated corporations,

(vi) utilizes all of the capital raised from the specified issue in the province, except that, where a product or service is developed in the province for an export market, the corporation may utilize capital for marketing the product or service outside the province, subject to the approval of the minister,

(vii) has no more than 50 full time equivalent employees,

(viii) has contributed not less than $25,000 in capital consisting of either or both of shareholder equity and shareholder loans before making an application for registration under the regulations, and

(ix) will engage in and utilize all of the capital raised from the specified issue for qualifying business activities;

2. Subsection 4(4) of the regulations is repealed and the following substituted:

(4) The capital that may be approved by the minister with respect to a specified issue shall not exceed $3,000,000.