Acts and Regulations

2001-11 - Registered Labour-sponsored Venture Capital Corporations

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Current to 1 January 2024
NEW BRUNSWICK
REGULATION 2001-11
under the
New Brunswick Income Tax Act
(O.C. 2001-79)
Filed March 16, 2001
Under section 124 of the New Brunswick Income Tax Act, the Lieutenant-Governor in Council makes the following Regulation:
Citation
2012-104
1This Regulation may be cited as the Registered Labour-sponsored Venture Capital Corporations Regulation - New Brunswick Income Tax Act.
2012-104
Definitions
2The following definitions apply in this Regulation.
“Act” means the New Brunswick Income Tax Act.(Loi)
“eligible business entity” means eligible business entity as defined in subsection 204.8(1) of the Federal Act.(entreprise admissible)
“eligible investment” means eligible investment as defined in subsection 204.8(1) of the Federal Act.(placement admissible)
“equity capital” means the amount of consideration paid in money for which approved shares are issued.(capitaux propres)
“reserve” means reserve as defined in subsection 204.8(1) of the Federal Act.(réserve)
2012-104
Application of regulation
3This Regulation applies to the 2000 taxation year and to the 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013 and subsequent taxation years which are prescribed for the purposes of subsection 50(3) of the Act.
2001-91; 2003-26; 2004-152; 2005-155; 2006-88; 2007-80; 2008-145; 2009-161; 2012-3; 2012-104; 2013-83
Registered labour-sponsored venture capital corporations
4For the 2011, 2012, 2013 and subsequent taxation years, the corporation “GrowthWorks Atlantic Venture Fund Ltd.” is prescribed as a registered labour-sponsored venture capital corporation for the purposes of section 50 of the Act.
2003-92; 2003-93; 2004-152; 2005-155; 2006-88; 2007-80; 2008-145; 2009-161; 2012-3; 2012-104; 2013-83
Investment requirements
2012-104
4.1(1)A registered labour-sponsored venture capital corporation shall comply with the following requirements for the investment of equity capital that it raised in New Brunswick from the sale of its approved shares on or before March 17, 2009, and that was required to be invested by it on or after that date:
(a) at least 80% of the equity capital shall be invested at all times in a taxation year in eligible investments or reserves in New Brunswick; and
(b) at least 60% of the equity capital raised in a taxation year by the corporation shall be invested in eligible investments in New Brunswick within five years after the end of the year in which the equity capital was raised.
4.1(2)A registered labour-sponsored venture capital corporation shall comply with the following requirements for the investment of equity capital that it raised in New Brunswick from the sale of its approved shares after March 17, 2009, and that was required to be invested by it after that date:
(a) at least 40% of the equity capital shall be invested in eligible business entities in New Brunswick within the year immediately following the end of the corporation’s taxation year in which the equity capital was raised;
(b) at least 60% of the equity capital shall be invested in eligible business entities in New Brunswick within the year immediately following the end of the period described in paragraph (a); and
(c) at least 75% of the equity capital shall be invested in eligible business entities in New Brunswick within the year immediately following the end of the period described in paragraph (b).
4.1(3)If the Minister of Finance and Treasury Board of New Brunswick imposes a penalty under subsection 50(2.6) of the Act, a registered labour-sponsored venture capital corporation that fails to comply with the requirements in paragraph (1)(b) shall pay a penalty calculated as follows:
(B/60%) × 15%
3where
3Bis the investment shortfall of the corporation.
4.1(4)For the purposes of subsection (3), the investment shortfall of the corporation is the amount by which the amount of equity capital that is required to be invested in eligible investments by year end under paragraph (1)(b) exceeds the amount of equity capital that actually was invested in eligible investments by year end under paragraph (1)(b).
4.1(5)If the Minister of Finance and Treasury Board of New Brunswick imposes a penalty under subsection 50(2.6) of the Act, a registered labour-sponsored venture capital corporation that fails to comply with the requirements in subsection (2) shall pay a penalty calculated as follows:
C × 12%
5where
5C is the cumulative investment shortfall of the corporation.
4.1(6)For the purposes of subsection (5), the cumulative investment shortfall of the corporation is the amount by which the cumulative amount of equity capital that is required to be invested in eligible business entities by year end under subsection (2) exceeds the amount of equity capital that actually was invested in eligible business entities by year end under subsection (2).
4.1(7)A registered labour-sponsored venture capital corporation shall pay the penalty referred to in subsection (3) or (5) within 90 days after the end of the year in which the investment shortfall occurred and to which the penalty relates.
4.1(8)From the date on which a penalty is required to be paid, the amount of the penalty bears interest at the rate of 1.06% per month compounded monthly.
2012-104; 2019, c.29, s.102
Commencement
Repealed: 2004-152
2004-152
5Repealed: 2004-152
2004-152
N.B. This Regulation is consolidated to December 20, 2019.