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Third Session, 47th General Assembly 63 Elizabeth II, 2014 |
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AN ACT TO AMEND THE INCOME TAX
ACT, 2000 NO. 2 |
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Received and Read the First Time................................................................................................. |
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Second |
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Committee.......................................................................................................................................... |
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Third |
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Royal Assent...................................................................................................................................... |
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HONOURABLE CHARLENE JOHNSON Minister of Finance and President of Treasury Board |
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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 Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: SNL2000 cI-1.1 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. |