Acts and Regulations

2003-39 - General

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NEW BRUNSWICK
REGULATION 2003-39
under the
Small Business Investor Tax Credit Act
(O.C. 2003-220)
Filed July 29, 2003
Under section 39 of the Small Business Investor Tax Credit Act, the Lieutenant-Governor in Council makes the following Regulation:
Citation
1This Regulation may be cited as the General Regulation - Small Business Investor Tax Credit Act.
Definition of “Act”
2In this Regulation, “Act” means the Small Business Investor Tax Credit Act. (Loi)
Minimum amount of capital to be raised
3For the purposes of paragraph 7(2)(a) of the Act, the minimum amount of capital to be raised by a corporation is $10,000.
Wages and salaries
4For the purposes of section 9 of the Act, a corporation shall pay at least 75% of its wages and salaries to individuals who are residents of New Brunswick.
Calculation of total assets
5For the purposes of paragraph 10(e) of the Act, the total assets of a corporation and its associated corporations shall be calculated by totaling the net book value of the tangible assets of the corporation and its associated corporations as contained in the financial statements attached to the corporation’s application for registration under section 6 of the Act.
Minimum number of eligible investors
6For the purposes of paragraph 11(d) of the Act, the minimum number of eligible investors is three.
Minimum investment
7For the purposes of subparagraph 11(d)(ii) of the Act, the minimum amount to be invested by each eligible investor is $1,000.
Redemption of eligible shares
8(1)For the purposes of paragraph 11(f) of the Act, a corporation may redeem an eligible share where it is held by a person who makes a written request to the corporation to redeem it and notifies the corporation in writing that
(a) the eligible share has devolved on the person on the consequence of the death of the original purchaser of the eligible share or the death of the annuitant under a registered retirement savings plan or registered retirement income fund that was the original purchaser of the eligible share, or
(b) the eligible share is held as an investment in a registered retirement savings plan or registered retirement income fund under which the original purchaser of the eligible share is the annuitant and the original purchaser has died.
8(2)No payment is required to be made under subsection 21(1) of the Act where an eligible share is redeemed in accordance with subsection (1).
Transfer of eligible shares
9(1)For the purposes of paragraph 11(g) of the Act, a corporation may register a transfer of an eligible share where the corporation is notified in writing that the eligible share is being transferred
(a) to be held in a registered retirement savings plan or registered retirement income fund under which the original purchaser is the annuitant,
(b) from a registered retirement savings plan or registered retirement income fund to the annuitant where the annuitant is the original purchaser, or
(c) as a consequence of the death of the original purchaser.
9(2)No repayment is required to be made under section 23 of the Act where an eligible share is transferred in accordance with subsection (1).
Application for tax credit certificate
10(1)An application for a tax credit certificate under subsection 14(1) of the Act shall be made within 30 days after the eligible investor has paid for an eligible share issued by the corporation.
10(2)An application for a tax credit certificate under subsection 14(1) of the Act shall be accompanied by a copy of the share certificate or certificates issued to the eligible investor in respect of the eligible shares purchased by the eligible investor.
Interest
11(1)For the purposes of paragraph 23(a) and section 28 of the Act, the rate of interest is the rate set out in subsection 9(1) of the General Regulation – Revenue Administration Act.
11(2)When an amount is owing under paragraph 23(a) of the Act, interest accrues on that amount commencing on the date of the disposition of the eligible share.
Annual return
12(1)For the purposes of subsection 24(1) of the Act, a corporation shall file an annual return within 90 days after the end of its fiscal year and shall provide the following information in its annual return:
(a) the names of all shareholders at the end of the fiscal year;
(b) the number, class and unit price paid for all shares, other than eligible shares, held by each shareholder;
(c) the number, class and unit price paid for all eligible shares held by each shareholder;
(d) the particulars of any redemption or transfer of eligible shares within the previous fiscal year, including the date of the redemption or transfer; and
(e) such other information as the Minister considers necessary to confirm the use or disposition of the raised capital and to ensure compliance with the Act and this Regulation.
12(2)A corporation shall attach to its annual return for a fiscal year a copy of its financial statements which pertain to that fiscal year and which have been reviewed by a person who is a licensed or registered member of an accounting association that is regulated under a private Act of the Province.
Commencement
13This Regulation comes into force on August 1, 2003.
N.B. This Regulation is consolidated to September 30, 2003.