Acts and Regulations

2016, c.112 - Small Business Investor Tax Credit Act

Table of contents
Full text
Current to 1 January 2024
2016, c.112
Small Business Investor
Tax Credit Act
Deposited December 23, 2016
DEFINITIONS AND INTERPRETATION
2026, c.16, s.2
Definitions
1The following definitions apply in this Act.
“active business” means a business carried on in Canada, other than a specified investment business or a personal services business as defined in the federal Act. (entreprise exploitée activement)
“association” Repealed: 2019, c.24, s.195
“auditor” means a person appointed under subsection 39(1). (auditeur)
“Commissioner” means the Provincial Tax Commissioner appointed under the Revenue Administration Act and includes any person designated by the Provincial Tax Commissioner or the Minister of Finance and Treasury Board to act on the Provincial Tax Commissioner’s behalf.(commissaire)
“community economic development plan” means a plan submitted to the Minister by a corporation or a cooperative as part of the application for registration under subsection 13(1).(plan de développment économique communautaire)
“convertible debenture” (débenture convertible) means a financial instrument issued by an eligible business that functions initially as a loan but may be converted by the holder into shares of the eligible business.
“cooperative” means a cooperative as defined in the Cooperatives Act.(coopérative)
“defined community” means a group of persons situated within the Province that may be reasonably distinguished by common geographic, economic or cultural characteristics.(communauté définie)
“Deputy Minister” means the Deputy Minister of Finance and Treasury Board and includes any person designated by the Deputy Minister of Finance and Treasury Board to act on the Deputy Minister of Finance and Treasury Board’s behalf.(sous-ministre)
“eligible business” means a corporation registered under section 6 or a corporation or cooperative registered under section 14.(entreprise admissible)
“eligible investor” means(investisseur admissible)
(a) an individual who is a natural person at least 19 years of age and to whom section 11 of the New Brunswick Income Tax Act applies,
(b) a corporation to which section 12 of the New Brunswick Income Tax Act applies, or
(c) a trust, other than a qualifying trust, to which section 11 or 42 of the New Brunswick Income Tax Act applies.
“eligible share” means(action admissible)
(a) a share of the capital stock of a corporation registered under section 6 or 14 that is newly issued as part of a specified issue, but does not include a replacement share, and
(b) an investment share of a cooperative registered under section 14 that is newly issued as part of a specified issue and that is not eligible for a tax credit allowed under the authority of the federal Act or a deduction from income under the authority of that Act other than a deduction referred to in subsection 146(5) of that Act, but does not include a replacement share,
and includes a convertible debenture if the convertible debenture is newly issued as part of a specified issue, but does not include a replacement share.
“federal Act” means the Income Tax Act (Canada). (Loi fédérale)
“inspector” means a person appointed under subsection 39(2). (inspecteur)
“Minister” means the Minister of Finance and Treasury Board and includes the Commissioner and any person designated by the Minister of Finance and Treasury Board to act on the Commissioner’s or the Minister of Finance and Treasury Board’s behalf. (ministre)
“NAICS” means the North American Industry Classification System maintained for Canada by Statistics Canada, as amended from time to time.(SCIAN)
“qualifying trust” means a qualifying trust as defined in section 127.4 of the federal Act. (fiducie admissible)
“replacement share” means(action de remplacement)
(a) a share or a convertible debenture issued as part of a specified issue if, at any time on or after December 11, 2002, the purchaser has disposed of a share or convertible debenture of any class of shares or convertible debentures of a corporation that is registered under section 6, or
(b) a share or a convertible debenture issued as part of a specified issue if, at any time on or after February 5, 2014, the purchaser has disposed of a share or convertible debenture of any class of shares or convertible debentures of a corporation or cooperative that is registered under section 14.
“specified issue” means an issue of shares or convertible debentures by a corporation registered under section 6 or a corporation or cooperative registered under section 14. (émission déterminée)
“strategic sector” means any sector, subsector, industry group, industry or Canadian industry encompassing economic activities that is represented by a code assigned by NAICS and prescribed by regulation. (secteur stratégique)
2003, c.S-9.05, s.1; 2007, c.49, s.1; 2014, c.20, s.1; 2014, c.45, s.1; 2019, c.24, s.195; 2019, c.29, s.151; 2026, c.16, s.2
Convertible debentures
2026, c.16, s.2
1.1(1) In this section, “holding period” means the period of four years after the convertible debenture was issued as part of a specified issue.
1.1(2)Nothing in this Act or the regulations prohibits the conversion of convertible debentures during the holding period.
1.1(3)Paragraphs 10(1)(f) and (g) and sections 29, 30 and 31 apply with the necessary modifications to shares resulting from the conversion of a convertible debenture issued as part of a specified issue.
1.1(4)For the purposes of subsection (3) and for greater certainty, the four-year period referred to in paragraphs 10(1)(f) and (g) and sections 29 and 31 is the period referred to in subsection (1).
2026, c.16, s.2
Associated corporations
2For the purposes of paragraphs 5(1)(c), 9(e), 12(g) and (h), 13(1)(b) and 17(f), one corporation or cooperative is associated with another corporation or cooperative if it is associated with the other corporation or cooperative within the meaning of section 256 of the federal Act, except that the relevant time for determining the association shall be at the time the corporation is registered under section 6 or the corporation or cooperative is registered under section 14 rather than the taxation year of the corporation or cooperative.
2003, c.S-9.05, s.2; 2014, c.20, s.2; 2014, c.45, s.2; 2019, c.24, s.195
Exclusion from eligible share
3Despite any other provision of this Act, an eligible share does not include a share or convertible debenture that, in the opinion of the Minister, is or will be issued as a result of a transaction or event or a series of transactions or events the main purpose of which is to claim the tax credit under this Act.
2003, c.S-9.05, s.3; 2026, c.16, s.2
Shares or convertible debentures of qualifying trust deemed to be those of eligible investor
2026, c.16, s.2
4For the purposes of paragraph 10(1)(d), subparagraph 10(1)(e)(iii) and subsections 20(1), (6) and (6.1), an eligible investor who is an individual shall be deemed to have purchased, held or disposed of shares or convertible debentures that are purchased, held or disposed of by a qualifying trust for that investor.
2003, c.S-9.05, s.4; 2014, c.20, s.4; 2026, c.16, s.2
REGISTRATION OF CORPORATIONS
OTHER THAN COMMUNITY ECONOMIC DEVELOPMENT CORPORATIONS
Application for registration
5(1)A corporation that intends to make a specified issue of shares or convertible debentures and that meets the criteria set out in section 9 may apply for registration under section 6 by delivering to the Minister, on a form provided by the Minister, an application including the following:
(a) a certified copy of the instrument of incorporation;
(b) a copy of the corporation’s investment plan;
(c) a copy of the most recent financial statements of the corporation and its associated corporations that 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;
(d) a certificate in writing signed by all the directors of the corporation certifying that the information contained in the application is complete and accurate; and
(e) any other information that the Minister may require in order to ensure compliance with this Act and the regulations.
5(1.1)Any corporation carrying on business in a strategic sector shall indicate in its application for registration the NAICS code assigned to that sector.
5(2)An application for registration shall be accompanied by the application fee prescribed by regulation, which is non-refundable.
2003, c.S-9.05, s.6; 2009, c.14, s.1; 2014, c.45, s.4; 2026, c.16, s.2
Requirements for registration
6(1)Subject to subsection (2) and on payment of the application fee referred to in subsection 5(2), the Minister may register a corporation under this section, with any conditions that the Minister considers appropriate,
(a) if the corporation satisfies the Minister that
(i) the corporation meets the criteria set out in section 9,
(ii) the proposed investment plan complies with the spirit and intent of this Act and the regulations, and
(iii) the corporation meets any other conditions for registration that are prescribed by regulation, and
(b) if the Minister is of the opinion that the proposed use of the capital to be raised by the specified issue, as set out in the investment plan, will benefit the operations of the corporation that are located in the Province.
6(2)The Minister shall not register a corporation under subsection (1) unless the Minister is satisfied that
(a) the corporation will raise immediately after registration, or within 120 days following registration, capital on the issue of eligible shares as part of a specified issue as set out in the investment plan in an amount that is not less than an amount prescribed by regulation and not greater than an amount or aggregate amount prescribed by regulation,
(b) the corporation will issue immediately after registration, or within 120 days following registration, eligible shares as part of a specified issue as set out in the investment plan to all eligible investors named in the investment plan, and
(c) the amounts that will be deductible or deducted under section 61.1 of the New Brunswick Income Tax Act during a particular year by all eligible investors will not exceed the amount prescribed by regulation.
6(3)On a written application by a corporation, the Minister may in writing extend the period in paragraph (2)(a) or (b) one time only by up to 60 days.
2003, c.S-9.05, s.7; 2009, c.14, s.2; 2014, c.20, s.5; 2014, c.45, s.5; 2026, c.16, s.2
Certificate of registration
7(1)If the Minister registers a corporation under section 6, the Minister shall issue a certificate of registration and the corporation shall be deemed to be registered as of the date on the certificate of registration.
7(1.1)The certificate of registration shall specify if the corporation intending to make a specified issue carries on business in a strategic sector or does not carry on business in a strategic sector.
7(2)The certificate of registration constitutes approval, as at the date of registration, for the corporation to raise the amount of capital referred to in the investment plan through the sale of eligible shares in respect of which the Minister may issue tax credit certificates under this Act.
2003, c.S-9.05, s.8; 2014, c.45, s.6; 2026, c.16, s.2
Condition of registration
8It is a condition of registration under section 6 that the corporation shall pay, in respect of each of the four years after the date of each certificate of registration issued to the corporation under subsection 7(1), at least the percentage prescribed by regulation of its wages and salaries to individuals who are residents of the Province.
2003, c.S-9.05, s.9; 2014, c.45, s.7
Criteria for eligibility
9The following are the criteria referred to in section 5 for eligibility of a corporation for registration:
(a) the corporation is a private company that meets the requirements prescribed by regulation;
(b) the corporation is incorporated under the laws of, or registered to carry on business in, the Province;
(c) the corporation has authorized capital consisting of shares without par value;
(d) the corporation is not engaged in a business prescribed by regulation;
(e) the total assets of the corporation, including the assets of its associated corporations, do not exceed $50,000,000, calculated in the manner prescribed by regulation, at the time of registration under section 6;
(f) the corporation is not substantially engaged in any activities that may be prescribed by regulation as ineligible;
(g) all or substantially all of the fair market value of the assets of the corporation is attributable to
(i) assets used in an active business, or
(ii) shares of another corporation if all or substantially all of the fair market value of the assets of that corporation is attributable to assets used in an active business; and
(h) the corporation meets all other criteria that may be prescribed by regulation.
2003, c.S-9.05, s.10; 2004, c.S-5.5, s.227; 2007, c.49, s.2; 2009, c.14, s.3; 2026, c.16, s.2
Criteria to be met by the registered corporation
2026, c.16, s.2
9.1A corporation registered under section 6 shall comply with the criteria set out in section 9, except for the criterion set out in paragraph 9(e), for four years after its registration.
2026, c.16, s.2
Investment plan
10(1)An investment plan of a corporation applying for registration under section 5 and every investment plan of a corporation registered under this Act shall contain or make provision for the following:
(a) the name of the corporation;
(b) the amount of capital to be raised under the plan;
(c) the names in full of the directors and officers of the corporation and the residential address of each;
(d) subject to subsection (2), with respect to eligible investors that have agreed to purchase eligible shares of the specified issue, whether directly or through a qualifying trust,
(i) for each eligible investor who is an individual, the full name, social insurance number and residential address of the eligible investor,
(ii) for each eligible investor that is a corporation, the name, business number and head office address of the eligible investor,
(iii) for each eligible investor that is a trust, the name, account number and residence address of the eligible investor,
(iv) the number of shares or convertible debentures subscribed for and, subject to subsection (3), the amount to be paid by each eligible investor,
(v) the number of shares or convertible debentures of the corporation held at any time by each eligible investor, and
(vi) a statement signed by each eligible investor certifying that the information in subparagraphs (i), (iv) and (v) with respect to the eligible investor is accurate;
(e) that shares or convertible debentures to be issued as part of a specified issue under the plan
(i) will only be issued by the corporation on being fully paid,
(ii) will include the rights, if any, to receive dividends declared by the corporation and to participate in the distribution of the remaining property of the corporation on dissolution,
(iii) will be registered immediately following their issue in the name of each shareholder or convertible debenture holder that purchases them or in the name of a trustee, if the shares or convertible debentures are purchased by a qualifying trust, and
(iv) do not have any rights or restrictions prohibited by regulation;
(f) that the corporation shall not redeem an eligible share in respect of which a tax credit certificate is issued under this Act unless the redemption occurs more than four years after the date on which the eligible share was issued, or the redemption occurs in the circumstances prescribed by regulation and meets the conditions prescribed by regulation;
(g) that the corporation shall not register a transfer by the original purchaser or by a registered retirement savings plan or a registered retirement income fund under which the original purchaser or the original purchaser’s spouse is the annuitant, of an eligible share in respect of which a tax credit certificate has been issued under this Act unless the transfer occurs more than four years after the date on which the eligible share was issued, or the transfer occurs in the circumstances prescribed by regulation and meets the conditions prescribed by regulation;
(h) that the corporation is prohibited from lending money, guaranteeing a loan or providing other financial assistance to a person for the purpose of or in connection with a purchase of eligible shares that are part of a specified issue;
(i) an investment confirmation, to be issued to each eligible investor that invests in the corporation within 30 days after the investment is made, setting out the information that may be prescribed by regulation;
(j) the proposed use of the capital to be raised by the specified issue;
(k) a summary of the major business activities and revenue sources of the corporation; and
(l) any other requirements that may be prescribed by regulation.
10(1.1)With the approval in writing of the Minister, a corporation may amend its investment plan.
10(1.2)In the case of an amendment to an investment plan, any reference to it in this Act is a reference to the amended investment plan.
10(2)For the purposes of paragraph (1)(d), the minimum number of eligible investors shall be as prescribed by regulation.
10(3)For the purposes of subparagraph (1)(d)(iv), the minimum amount to be paid by each eligible investor shall be as prescribed by regulation.
2003, c.S-9.05, s.11; 2007, c.49, s.3; 2014, c.20, s.6; 2026, c.16, s.2
Endorsement
11If a corporation registered under this Act issues a certificate to a holder of a class of its eligible shares, the corporation shall put the following endorsement on the certificate: “The right to redeem or transfer this class of shares or class of convertible debentures is subject to the provisions of the Small Business Investor Tax Credit Act”.
2003, c.S-9.05, s.12; 2026, c.16, s.2
Prohibited use of funds
12A corporation registered under this Act shall not use the funds raised by its specified issue in respect of which a tax credit certificate has been or may be issued under this Act for
(a) lending,
(b) acquiring or purchasing the shares or convertible debentures of another person,
(c) investment outside the Province,
(d) investment in land, except land that is incidental and ancillary to the active business in which the corporation is primarily engaged,
(e) funding all or part of the purchase of services or assets at a price that is greater than the fair market value of the services or assets purchased,
(f) purchasing services or assets provided by the Crown in right of the Province or an agency or corporation of the Crown, if
(i) those services or assets are to be used in all or in part in a business or activity that is the same as or similar to the activity previously carried on by the Crown in right of the Province or the agency or corporation of the Crown, and
(ii) the corporation has received, either directly or indirectly, financial assistance from a government, local government or public authority with respect to the acquisition of those services or assets,
(g) the redemption or purchase of previously issued shares or convertible debentures of the corporation or an associated corporation,
(h) the retirement of part of a liability of a shareholder or of a convertible debenture holder of the corporation or an associated corporation,
(i) the payment of dividends,
(j) the funding of all or part of the purchase by the corporation of all or substantially all of the assets of an existing proprietorship, partnership, joint venture, trust or company, except a proprietorship, partnership, joint venture, trust or company that is in receivership or in bankruptcy if an eligible investor or group of investors did not own at any time more than 10% of the voting shares of the proprietorship, partnership, joint venture, trust or company that is in receivership or in bankruptcy, or
(k) other purposes prescribed by regulation.
2003, c.S-9.05, s.13; 2005, c.7, s.77; 2014, c.20, s.7; 2017, c.20, s.168; 2026, c.16, s.2
REGISTRATION OF COMMUNITY ECONOMIC
DEVELOPMENT CORPORATIONS
OR COOPERATIVES
2019, c.24, s.195
Application for registration
13(1)A corporation or cooperative that intends to make a specified issue of shares or convertible debentures and that meets the criteria set out in section 17 may apply for registration under section 14 by delivering to the Minister an application, in a form acceptable to the Minister, that includes the following:
(a) a copy of the constitution of the corporation or the cooperative;
(b) a copy of the most recent financial statements of the corporation or the cooperative, and of its associated corporations or associated cooperatives, that have been prepared or 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;
(c) a copy of the community economic development plan, containing the information prescribed by regulation;
(d) a certificate in writing signed by all the directors of the corporation or cooperative certifying that the information contained in the application is complete and accurate;
(e) any information prescribed by regulation; and
(f) any other information that the Minister may require in order to ensure compliance with this Act and the regulations.
13(1.1)Any corporation or cooperative carrying on business in a strategic sector shall indicate in its application for registration the NAICS code assigned to that sector.
13(1.2)With the approval in writing of the Minister, a corporation or cooperative may amend its community economic development plan.
13(1.3)In the case of an amendment to a community economic development plan, any reference to it in this Act or the regulations is a reference to the amended community economic development plan.
13(1.4)A corporation or cooperative that makes amendments to its constitution that affect eligibility for a tax credit under this Act shall deliver a copy of the new constitution to the Minister within 60 days after the amendments are made.
13(2)An application for registration shall be accompanied by the application fee prescribed by regulation, which is non-refundable.
2014, c.45, s.8; 2019, c.24, s.195; 2026, c.16, s.2
Requirements for registration
14(1)Subject to subsection (2) and on payment of the application fee referred to in subsection 13(2), the Minister may register a corporation or cooperative under this section, with any conditions that the Minister considers appropriate,
(a) if the corporation or cooperative satisfies the Minister that
(i) the corporation or cooperative meets the criteria set out in section 17,
(ii) the proposed community economic development plan complies with the spirit and intent of this Act and the regulations,
(iii) the constitution of the corporation provides that no individual is a specified shareholder of the corporation as that term is defined by section 248 of the federal Act and as if the reference to 10% in that definition were read as a reference to 20%,
(iv) the specified issue complies with the provisions of the Securities Act or any part of that Act that may be prescribed by regulation, and
(v) the corporation or cooperative meets any other conditions for registration that are prescribed by regulation, and
(b) if the Minister is of the opinion that the proposed use of the capital to be raised by the specified issue, as set out in the community economic development plan, will benefit the operations of the corporations or cooperatives that are located in the Province.
14(2)The Minister shall not register a corporation or cooperative under subsection (1) unless the Minister is satisfied that
(a) the corporation or cooperative will raise immediately after registration, or within 120 days following registration, capital on the issue of eligible shares as part of a specified issue as set out in the community economic development plan in an amount that is not less than an amount prescribed by regulation and not greater than an amount or aggregate amount prescribed by regulation,
(b) the corporation or cooperative will issue immediately after registration, or within 120 days following registration, eligible shares as part of a specified issue as set out in the community economic development plan to all eligible investors named in the plan, and
(c) the amounts that will be deductible or deducted under section 61.1 of the New Brunswick Income Tax Act during a particular year by all individuals will not exceed the amount prescribed by regulation.
14(3)On a written application by a corporation or cooperative, the Minister may in writing extend the period in paragraph (2)(a) or (b) one time only by up to 60 days.
2014, c.45, s.8; 2019, c.24, s.195; 2026, c.16, s.2
Certificate of registration
15(1)If the Minister registers a corporation or cooperative under section 14, the Minister shall issue a certificate of registration and the corporation or cooperative shall be deemed to be registered as of the date on the certificate of registration.
15(1.1)The certificate of registration shall specify if the corporation or cooperative intending to make a specified issue carries on business in a strategic sector or does not carry on business in a strategic sector.
15(2)The certificate of registration constitutes approval, as at the date of registration, for the corporation or cooperative to raise the amount of capital referred to in the community economic development plan through the sale of eligible shares in respect of which the Minister may issue tax credit certificates under this Act.
2014, c.45, s.8; 2019, c.24, s.195; 2026, c.16, s.2
Condition of registration
16It is a condition of registration under section 14 that the corporation or cooperative shall pay, in respect of each of the four years after the date of each certificate of registration issued to the corporation or cooperative under subsection 15(1), at least the percentage prescribed by regulation of its wages and salaries to individuals who are residents of the Province.
2014, c.45, s.8; 2019, c.24, s.195
Criteria for eligibility
17The following are the criteria referred to in section 13 for eligibility of a corporation or cooperative for registration:
(a) the corporation or cooperative is incorporated under the laws of, or registered to carry on business in, the Province;
(b) the corporation or cooperative has a constitution that
(i) restricts the business of the corporation or cooperative to
(A) operating or carrying on business that is an active business or to evaluating and making investments in one or more active businesses based on a set of criteria defined by the corporation or cooperative,
(B) providing information to and educating investors in the defined community as to the role of capital in business, the value of equity investments to the defined community and the rights and obligations of corporations, shareholders and convertible debenture holders,
(C) investing the capital raised by a specified issue in respect of which a tax credit certificate has been or may be issued under this Act, in businesses located within the defined community as outlined in the community economic development plan and that meet the criteria prescribed by regulation, if any,
(D) exercising ownership rights with respect to the investments made by the corporation or cooperative, and
(E) providing the administrative support necessary to carry on the business of the corporation or cooperative, including preparation of annual reports and the holding of meetings of shareholders and the Board of Directors;
(ii) describes the defined community for which the corporation or cooperative was formed;
(iii) makes provisions for annual general meetings of the shareholders;
(c) in the case of a corporation, the corporation has a Board of Directors, elected by the shareholders at the annual general meeting of the shareholders, consisting of not fewer than six individuals who are residents of the community in which the corporation carries on business;
(c.1) in the case of a cooperative, the cooperative has a Board of Directors, elected by the members at the annual general meeting of the members, consisting of not fewer than six individuals who are residents of the community in which the cooperative carries on business;
(d) the corporation or cooperative is not a non-profit, charitable or non-taxable corporation or cooperative;
(e) in the case of a corporation, the corporation has authorized capital consisting of at least one class of voting equity shares without par value;
(e.1) in the case of a cooperative, the cooperative has authorized capital consisting of at least one class of investment shares without a par value;
(f) the total assets of the corporation or cooperative, and its associated corporations and associated cooperatives, do not exceed $50,000,000, calculated in the manner prescribed by regulation, at the time of registration under section 14;
(g) in the case of a corporation, all or substantially all of the fair market value of the assets of the corporation is attributable to
(i) assets used in an active business, or
(ii) shares or convertible debentures of another corporation if all or substantially all of the fair market value of the assets of that corporation is attributable to assets of that corporation used in an active business or that the other corporation has a constitution that restricts the corporation to operating or carrying on business that is an active business or to evaluating and making investments in one or more active businesses based on a set of criteria defined by the corporation;
(h) the corporation or cooperative does not carry on business or operations in an activity prescribed by regulation or the corporation or cooperative has a constitution that restricts the corporation or cooperative to investing in investments of another corporation or another cooperative that does not carry on business or operations in an activity prescribed by regulation; and
(i) the corporation or cooperative meets all other criteria that may be prescribed by regulation.
2014, c.45, s.8; 2019, c.24, s.195; 2026, c.16, s.2
Investment requirements
18(1)A corporation or cooperative registered under section 14 shall meet the investment requirements prescribed by regulation.
18(2)The Minister may extend, with or without conditions, the time limit for meeting the investment requirements prescribed by regulation and may grant the extension even though the time limit to be extended has expired.
18(3)The Minister may impose a penalty on a corporation or cooperative registered under section 14 that fails to meet the investment requirements prescribed by regulation.
2014, c.45, s.8; 2019, c.24, s.195
Application of sections 11 and 12 and sections 20 to 46
19Sections 11 and 12 and sections 20 to 46, excluding sections 26.1 and 45.1 to 45.8, apply with the necessary modifications to a corporation or cooperative registered under section 14.
2014, c.45, s.8; 2019, c.24, s.195; 2026, c.16, s.2
SMALL BUSINESS
INVESTOR TAX CREDIT
Application for tax credit certificate
20(1)If an eligible investor is an individual who has paid, or whose qualifying trust has paid, during the calendar year or within 60 days following the calendar year, for eligible shares issued by a corporation registered under this Act as part of its specified issue, the corporation shall apply to the Minister on behalf of the eligible investor for a tax credit certificate in respect of a tax credit to be claimed by the eligible investor under section 61.1 of the New Brunswick Income Tax Act.
20(2)If an eligible investor is a corporation or a trust that has paid during the taxation year for eligible shares issued by a corporation registered under this Act as part of its specified issue, the corporation registered under this Act shall apply to the Minister on behalf of the eligible investor for a tax credit certificate in respect of a tax credit to be claimed by the eligible investor under section 61.1 of the New Brunswick Income Tax Act.
20(3)An application shall be made on a form provided by the Minister and shall be signed by the secretary and one authorized officer of the corporation that has issued the eligible shares in respect of which the tax credit certificate is sought, and shall be accompanied by the application fee prescribed by regulation and all additional material that may be required by the regulations.
20(4)An application shall be made within the time prescribed by regulation.
20(5)The application fee is non-refundable.
20(6)Subject to subsection (6.2), if an eligible investor is an individual, the amount of the tax credit referred to in subsection (1) that may be claimed each year by the eligible investor is equal to 50% of all amounts the total of which does not exceed $250,000, paid during the time period referred to in subsection (1) by the eligible investor or by a qualifying trust of the eligible investor to a corporation registered under this Act, which does not carry on business in a strategic sector, in consideration for eligible shares issued by the corporation as part of its specified issue.
20(6.1)Subject to subsection (6.2), if an eligible investor is an individual, the amount of the tax credit referred to in subsection (1) that may be claimed each year by the eligible investor is equal to 50% of all amounts the total of which does not exceed $1,000,000, paid during the time period referred to in subsection (1) by the eligible investor or by a qualifying trust of the eligible investor to a corporation registered under this Act, which carries on business in a strategic sector, in consideration for eligible shares issued by the corporation as part of its specified issue.
20(6.2)An eligible investor who is an individual may claim a tax credit under both subsection (6) and subsection (6.1) provided that the amount of money invested during the time period referred to in subsection (1) by the eligible investor, and in respect of which tax credit certificates may be issued under this Act, does not exceed, in total, $1,000,000.
20(7)Subject to subsection (7.2), if an eligible investor is a corporation or a trust, the amount of the tax credit referred to in subsection (2) that may be claimed each taxation year by the eligible investor is equal to 25% of all amounts the total of which does not exceed $500,000, paid during the taxation year referred to in subsection (2) by the eligible investor to a corporation registered under this Act, which does not carry on business in a strategic sector, in consideration for eligible shares issued by the corporation registered under this Act as part of its specified issue.
20(7.1)Subject to subsection (7.2), if an eligible investor is a corporation or a trust, the amount of the tax credit referred to in subsection (2) that may be claimed each taxation year by the eligible investor is equal to 25% of all amounts the total of which does not exceed $1,000,000, paid during the taxation year referred to in subsection (2) by the eligible investor to a corporation registered under this Act, which carries on business in a strategic sector, in consideration for eligible shares issued by the corporation registered under this Act as part of its specified issue.
20(7.2)An eligible investor that is a corporation or trust may claim a tax credit under both subsection (7) and subsection (7.1) provided that the amount of money invested during the taxation period referred to in subsection (2) by the eligible investor, and in respect of which tax credit certificates may be issued under this Act, does not exceed, in total, $1,000,000.
2003, c.S-9.05, s.14; 2007, c.49, s.4; 2009, c.14, s.4; 2014, c.20, s.8; 2015, c.26, s.1; 2026, c.16, s.2
Prohibition regarding eligible investors
21(1)The following definitions apply in this section.
“affiliate” , if used to indicate a relationship between corporations, means any corporation when one is the subsidiary of the other, or both are subsidiaries of the same corporation or(affilié)
(a) each of them is controlled by the same person or the same group of persons, or
(b) one of them is controlled by one person and the other is controlled by
(i) a spouse, parent, grandparent, child, grandchild, brother or sister of that person, or
(ii) a parent, grandparent, child, grandchild, brother or sister of the spouse of that person, residing in the same residence.
“associate” , if used to indicate a relationship with an eligible investor that is a corporation or a trust, means(associé)
(a) a corporation of which the eligible investor owns, directly or indirectly, shares carrying 10% or more of the outstanding voting rights for the election of the directors of the corporation,
(b) a partner of the eligible investor,
(c) a participant in a joint venture with the eligible investor, or
(d) a trust or estate
(i) in which the eligible investor has, in the opinion of the administrator, a substantial beneficial interest, or
(ii) for which the eligible investor serves as trustee or in a similar capacity.
21(2)If an eligible investor is a corporation or a trust, the eligible investor shall not make or hold an investment in a corporation registered under this Act if the eligible investor, either alone or in conjunction with one or more of the following persons, will own, directly or indirectly, shares carrying 50% or more of the votes for the election of the directors of the corporation registered under this Act or will, in any manner, control the corporation registered under this Act:
(a) associates or affiliates of the eligible investor;
(b) shareholders of the eligible investor or their associates or affiliates;
(c) directors of the eligible investor or their associates; or
(d) officers of the eligible investor or their associates.
2014, c.20, s.9
Issuance of tax credit certificate
22(1)Subject to subsection (2), on receipt of an application under subsection 20(1) or (2), the Minister shall issue a tax credit certificate to the eligible investor indicating the amount of the tax credit and the taxation year in respect of which the credit may be claimed, unless the Minister considers that the corporation registered under this Act or its directors, officers or shareholders are conducting its business or affairs in a manner that is contrary to the spirit and intent of this Act and the regulations.
22(2)The Minister shall not issue a tax credit certificate under subsection (1) unless the Minister is satisfied that
(a) the corporation and its eligible investors are complying with the corporation’s investment plan and this Act and the regulations,
(b) the eligible shares to which the tax credit relates do not entitle the holder, in respect of the acquisition of those shares,
(i) to claim a tax credit under the New Brunswick Income Tax Act, other than a tax credit under section 35 or 61.1, or both, of that Act, against tax otherwise payable,
(ii) to claim a deduction from income under the New Brunswick Income Tax Act or the federal Act, other than a deduction under subsection 146(5) of the federal Act, or
(iii) to receive any other financial assistance from a government, local government or public authority,
(c) no tax credit has been previously allowed under the New Brunswick Income Tax Act in respect of the eligible shares to which the tax credit certificate relates,
(d) the eligible shares to which the tax credit certificate relates were purchased and acquired directly from the corporation issuing the eligible shares,
(e) the aggregate of all entitlements in respect of the eligible investor for all tax credit certificates applied for in a year or a taxation year, as the case may be, does not exceed
(i)  $125,000, if the eligible investor is an individual who is claiming the tax credit under subsection 20(6),
(ii) $500,000, if the eligible investor is an individual who is claiming the tax credit under subsection 20(6.1),
(iii) $500,000, if the eligible investor is an individual who is claiming a tax credit under both subsection 20(6) and subsection 20(6.1),
(iv) $125,000, if the eligible investor is a corporation or trust that is claiming the tax credit under subsection 20(7),
(v)  $250,000, if the eligible investor is a corporation or trust that is claiming the tax credit under subsection 20(7.1), or
(vi) $250,000, if the eligible investor is a corporation or trust that is claiming a tax credit under both subsection 20(7) and subsection 20(7.1), and
(f) there has been compliance with any other conditions that may be prescribed by regulation.
2003, c.S-9.05, s.15; 2005, c.7, s.77; 2007, c.49, s.5; 2009, c.14, s.5; 2014, c.20, s.10; 2015, c.26, s.2; 2017, c.20, s.168; 2026, c.16, s.2
ENFORCEMENT
Revocation of certificate of registration
23(1)At any time after a certificate of registration has been issued to a corporation, the Minister may revoke the certificate
(a) if, in the opinion of the Minister, the corporation has not complied with a provision of this Act or the regulations,
(b) if, in the opinion of the Minister, the corporation, or its directors, officers or shareholders, are conducting the business or affairs of the corporation in a manner that is contrary to the spirit and intent of this Act and the regulations,
(c) if the corporation has misrepresented any information to the Minister either knowingly or through circumstances amounting to negligence,
(d) if the corporation has used the funds raised by the specified issue for any use prohibited by section 12,
(e) if the corporation redeems, retracts or registers the transfer of an eligible share contrary to the prohibitions required by this Act to be contained in the investment plan,
(f) if, in the opinion of the Minister, the corporation is no longer in compliance with its investment plan, or
(g) if another transaction or event prescribed by regulation occurs.
23(2)The Minister may not revoke the registration of a corporation without first notifying, by registered mail, the corporation of the Minister’s intent and giving it, its representative and other persons that would be affected by the revocation the opportunity to make comments.
23(3)A person to whom the Minister sends a notice under subsection (2) and who wishes to make comments to the Minister shall make them within 30 days after receiving the notice.
23(4)A notice under subsection (2) shall be deemed to have been received by the person to whom it is sent no later than five days after it was mailed.
2003, c.S-9.05, s.16; 2014, c.20, s.11
Surrender of registration
24On the request of a corporation registered under this Act, the Minister may accept the surrender of its registration if
(a) the corporation pays to the Minister the amount, if any, required to be paid under section 25, and
(b) the corporation meets all other conditions that may be prescribed by regulation.
2003, c.S-9.05, s.17
Recovery of tax credit on revocation, surrender or wind-up
25A corporation whose registration is revoked by the Minister, that makes a request under section 24 to surrender its registration or that proposes to wind-up or dissolve shall immediately pay to the Minister an amount of money equal to the total amount of all tax credits for which tax credit certificates were issued or may be issued under this Act in respect of all eligible shares of the corporation that were issued as part of a specified issue within the four years immediately preceding the date of the revocation, surrender of registration or the winding-up or dissolution.
2003, c.S-9.05, s.18
Recovery of tax credit on receivership or bankruptcy
26(1)Subject to subsection (2), if a corporation registered under this Act is in receivership or in bankruptcy within the four-year period immediately following the issuance of its eligible shares, the corporation shall immediately pay to the Minister an amount of money equal to the percentage, calculated by the following formula, of the total amount of all tax credits for which tax credit certificates were issued or may be issued under this Act in respect of all eligible shares of the corporation that were issued as part of its specified issue within that period of time:
(48 - n) / 48
where
n is the number of months that the eligible shares were held.
26(2)Instead of recovering the amount provided for in subsection (1) from the corporation, the Minister may recover from each eligible investor named in the investment plan of that corporation the amount equal to the lesser of the following amounts:
(a) the total amount of all tax credits in respect of which tax credit certificates have been issued to the eligible investor under this Act and that have been used by that eligible investor; and
(b) the amount corresponding to the product obtained by multiplying the total amount of all tax credits in respect of which tax credit certificates have been issued to all eligible investors named in the corporation’s investment plan by the percentage calculated using the following formula:
(48 - n) / 48
where
n is the number of months that the eligible shares were held.
2014, c.20, s.12; 2026, c.16, s.2
Status as a private company
2026, c.16, s.2
26.1If, within the four-year period immediately following the issuance of its eligible shares, a corporation registered under section 6 ceases to be a private company that meets the requirements prescribed by regulation, the corporation shall immediately pay to the Minister an amount of money equal to the percentage, calculated by the following formula, of the total amount of all tax credits for which tax credit certificates were issued or may be issued under this Act in respect of all eligible shares of the corporation that were issued as part of its specified issue within that period of time:
(48 - n) / 48
where
n is the number of months that the eligible shares were held and is deemed to be zero if the number of months is less than 24 months.
2026, c.16, s.2
Liability of officers and directors
27If an officer or director of a corporation registered under this Act permits or acquiesces to a transaction or event or a series of transactions or events that the officer or director knew or ought to have known at that time would cause the certificate of registration to be revoked, that person is jointly and severally liable for the repayment under section 25.
2003, c.S-9.05, s.19; 2014, c.20, s.13
Recovery of tax credit when no entitlement
28If an eligible investor receives, directly or indirectly, the benefit of all or part of a tax credit in respect of which the eligible investor is not entitled, the eligible investor shall immediately pay the amount of the benefit to the Minister.
2003, c.S-9.05, s.20; 2014, c.20, s.14
Recovery of tax credit on early redemption
29(1)The following definition applies in this section.
“holding period” means four years after the date the eligible share was issued.
29(2)If a corporation registered under this Act redeems, acquires or cancels an eligible share in respect of which a tax credit certificate was issued under this Act before the expiry of the holding period, other than when permitted by regulation, the person who was the shareholder or convertible debenture holder, as the case may be, immediately before the redemption, acquisition or cancellation shall pay to the Minister an amount equal to the tax credit allowed in respect of the eligible share, or a lesser amount if prescribed by regulation.
2003, c.S-9.05, s.21; 2026, c.16, s.2
Withholding and remittance of tax credit
30(1) If a corporation registered under this Act redeems, acquires or cancels an eligible share in respect of which a tax credit certificate was issued and, as a consequence, an amount is payable under subsection 29(2) by the person who was the shareholder or convertible debenture holder, as the case may be, immediately before the redemption, acquisition or cancellation, the corporation shall
(a) withhold the amount payable under subsection 29(2) from the amount otherwise payable to the shareholder or convertible debenture holder on the redemption, acquisition or cancellation,
(b) send the amount payable under subsection 29(2) to the Minister on behalf of the shareholder or convertible debenture holder within 30 days after the redemption, acquisition or cancellation, and
(c) submit with the amount referred to in paragraph (b) a statement in the form approved by the Minister.
30(2)If a corporation registered under this Act fails to withhold the amount referred to in paragraph (1)(a) from an amount paid to a shareholder or convertible debenture holder, the corporation is liable to pay on behalf of the shareholder or convertible debenture holder, as the case may be, the amount the corporation failed to withhold, and is entitled to recover that amount from the shareholder or convertible debenture holder.
2003, c.S-9.05, s.22; 2014, c.20, s.15; 2026, c.16, s.2
Disposal of eligible share
2026, c.16, s.2
31If a tax credit has been allowed in respect of an eligible share and a person disposes of the eligible share within the four-year period after the date it was purchased, the person shall repay to the Minister
(a) an amount equal to the tax credit received in respect of the eligible share, including interest on the amount if prescribed by regulation, or
(b) a lesser amount determined in accordance with the regulations in the circumstances prescribed by regulation.
2003, c.S-9.05, s.23; 2026, c.16, s.2
GENERAL
Annual returns
32(1)A corporation that is registered under this Act shall prepare and file with the Minister an annual return in accordance with the regulations, with any information required by the Minister and in the form approved by the Minister.
32(2)Unless otherwise ordered by the Minister, subsection (1) does not apply after four years have elapsed since the date on which the corporation last issued eligible shares as part of a specified issue.
2003, c.S-9.05, s.24
Records of corporation
33(1)A corporation that is registered under this Act shall maintain records and books of account at its registered office in the Province, or at any other place designated by the Minister, in the form and containing the information the Minister considers necessary to verify that the corporation has complied with this Act and the regulations.
33(2)Until permission for their disposal is obtained from the Minister, every corporation required to keep records and books of account shall retain them and every document necessary to verify the information contained in them.
2003, c.S-9.05, s.25
Debt due the Crown
34An amount required to be paid to the Minister under this Act is a debt due to the Crown in right of the Province and may be recovered by action in its name in a court of competent jurisdiction.
2003, c.S-9.05, s.26
Recovery of amount
35(1)The Minister may issue a certificate stating an amount that is due and payable under this Act, including interest, if any, and the name of the person by whom the same is due and payable.
35(2)A certificate referred to in subsection (1) may be issued
(a) when directed by the Minister, or
(b) on the expiration of 30 days after the mailing of a registered letter demanding payment.
35(3)A certificate issued under subsection (1) may be filed in The Court of King’s Bench of New Brunswick and shall be entered and recorded in the Court, and when so entered and recorded becomes a judgment of the Court and may be enforced as a judgment obtained in the Court by the Crown in right of the Province against the person named in the certificate for a debt of the amount specified in the certificate.
35(4)All reasonable costs and charges attendant on the filing, entering and recording of the certificate shall be recovered in like manner as if the amount of the costs and charges had been included in the certificate.
2003, c.S-9.05, s.27; 2023, c.17, s.255
Interest
36From the date on which an amount due to the Crown in right of the Province under this Act is to be paid by a person, the amount bears interest at the rate prescribed by regulation.
2003, c.S-9.05, s.28
Extension of time
37The Minister may extend, with or without conditions, the time limit for the doing of anything under this Act or the regulations and may grant the extension even though the time limit to be extended has expired.
2003, c.S-9.05, s.29
Projections
38A calculation or determination under this Act or the regulations may be based on projections that the Minister considers to be appropriate.
2003, c.S-9.05, s.30
Appointment of auditors and inspectors
39(1)The Minister may appoint one or more persons as auditors for the purpose of ensuring compliance with this Act and the regulations.
39(2)The Minister may appoint one or more persons as inspectors for the purpose of ensuring compliance with this Act and the regulations.
2003, c.S-9.05, s.31
Audits and examinations
40(1)For the purpose of ensuring compliance with this Act and the regulations, an auditor or inspector may carry out an examination of the affairs of the following during normal business hours:
(a) a corporation that is registered under this Act; or
(b) a person who is or was a shareholder of or convertible debenture holder of a corporation that is registered under this Act.
40(2)For the purpose of ensuring compliance with this Act and the regulations, an auditor may audit or examine the records, books of account or other documents of a corporation or person referred to in subsection (1), and make copies of them.
40(3)For the purpose of ensuring compliance with this Act and the regulations, an inspector may examine the records, books of account or other documents of a corporation or person referred to in subsection (1), and make copies of them.
40(4)For the purposes of an audit or examination under subsections (1) to (3), an auditor or inspector may enter the premises of a corporation or person referred to in subsection (1) during normal business hours.
40(5)Despite subsection (4), an auditor or inspector shall not enter a private dwelling unless the auditor or inspector
(a) has the consent of the occupier, or
(b) has obtained a warrant under the Entry Warrants Act.
40(6)Before or after attempting to enter or have access to, through or over any premises for the purposes of this section, an auditor or inspector may apply to a judge for an entry warrant under the Entry Warrants Act.
40(7)An auditor or inspector may request the assistance of a peace officer for the purposes of this section.
2003, c.S-9.05, s.32; 2026, c.16, s.2
Removal of documents
41(1)An auditor or inspector may remove records, books of account or documents from a premises for the purposes of section 40 and may make a copy or extract of them or any part of them and shall give a receipt for them to the occupier.
41(2)If records, books of account or documents are removed from a premises, they shall be returned to the occupier as soon as possible after the copies or extracts have been made.
41(3)A copy or extract of a record, book of account or document related to an examination and purporting to be certified by an auditor or inspector is admissible in evidence in an action, proceeding or prosecution and, in the absence of evidence to the contrary, is proof of the original without proof of the appointment, authority or signature of the person purporting to have certified the copy or extract.
2003, c.S-9.05, s.33
Information to be provided
42Every person shall furnish an auditor or inspector with any information that the auditor or inspector reasonably requires for the purposes of section 40.
2003, c.S-9.05, s.34
Obstruction
43(1)No person shall obstruct or interfere with an auditor in the carrying out of an audit or examination under this Act.
43(2)No person shall obstruct or interfere with an inspector in the carrying out of an examination under this Act.
43(3)A refusal of consent to enter a private dwelling is not and shall not be deemed to be interfering with or obstructing within the meaning of subsection (1) or (2), except when an entry warrant has been obtained.
2003, c.S-9.05, s.35
Offences
44(1)A person commits an offence who
(a) makes or assists in making a statement in a document or information required to be filed or furnished under this Act or the regulations to the Minister, an auditor or an inspector that, at the time and in the light of the circumstances under which the statement is made, is false or misleading with respect to a material fact or that omits to state a material fact, the omission of which makes that statement false or misleading,
(b) makes, or assists in making, false or misleading entries in the records or books of account of a corporation registered under this Act, or
(c) knowingly fails to record material particulars in the records or books of account of a corporation registered under this Act.
44(2)A person does not commit an offence under this section in relation to a statement made if the person did not know that the statement was false or misleading and, in the exercise of reasonable diligence, could not have known that the statement was false or misleading.
44(3)A person who violates or fails to comply with a provision of this Act listed in Column 1 of Schedule A commits an offence.
44(4)A person who violates or fails to comply with a provision of the regulations commits an offence.
2003, c.S-9.05, s.36
Penalties
45(1)For the purposes of Part 2 of the Provincial Offences Procedure Act, each offence listed in Column 1 of Schedule A is punishable as an offence of the category listed beside it in Column 2 of Schedule A.
45(2)If an offence under this Act continues for more than one day,
(a) the minimum fine that may be imposed is the minimum fine set by the Provincial Offences Procedure Act multiplied by the number of days during which the offence continues, and
(b) the maximum fine that may be imposed is the maximum fine set by the Provincial Offences Procedure Act multiplied by the number of days during which the offence continues.
2003, c.S-9.05, s.37
Administrative penalties
2026, c.16, s.2
45.1(1)If the Commissioner believes, on reasonable grounds, that an eligible business has violated or failed to comply with a provision of this Act that is listed in Column 1 of Schedule B, the Commissioner may issue a notice of non-compliance to the eligible business.
45.1(2)The Commissioner shall serve a notice of non-compliance on the eligible business
(a) by registered mail to the eligible business’s latest known address, or
(b) in the manner in which personal service may be made under the Rules of Court.
45.1(3)Service by registered mail is deemed to have been effected five days after the date the notice of non-compliance is deposited in the mail.
45.1(4)The notice of non-compliance shall contain the following information:
(a) the name of the eligible business that has violated or failed to comply with a provision listed in Column 1 of Schedule B;
(b) the provision listed in Column 1 of Schedule B and the date on which the violation or failure to comply occurred;
(c) the amount of the administrative penalty that may be imposed; and
(d) information with respect to the right to make written submissions as provided for in section 45.2.
45.1(5)A notice of non-compliance shall not be served more than one year after the Commissioner first had knowledge of the violation or failure to comply.
45.1(6)An eligible business that is the subject of a notice of non-compliance shall comply with the provisions mentioned in the notice within 15 days after being served with the notice.
2026, c.16, s.2
Submissions
2026, c.16, s.2
45.2(1)An eligible business that is the subject of a notice of non-compliance and that objects to the notice may submit written submissions to the Commissioner on the form provided by the Commissioner within 15 days after being served with the notice.
45.2(2)Within 30 days after receiving the written submissions, the Commissioner shall
(a) issue a notice indicating that the Commissioner is satisfied of the following:
(i) an error or omission exists with regard to the issuance of the notice of non-compliance;
(ii) an extenuating circumstance beyond the control of the eligible business exists and prevented compliance with the provision listed in Column 1 of Schedule B; or
(iii) due diligence was exercised by the eligible business to attempt to prevent the violation or failure to comply with the provision listed in Column 1 of Schedule B,
(b) issue a notice extending the time period referred to in subsection 45.1(6), or
(c) impose an administrative penalty by issuing a notice of administrative penalty.
2026, c.16, s.2
Administrative penalty and offence
2026, c.16, s.2
45.3(1)An eligible business subject to an administrative penalty shall not be charged with an offence in respect of the same incident that gave rise to the administrative penalty.
45.3(2)An eligible business charged with an offence shall not be subject to an administrative penalty in respect of the same incident that gave rise to the charge.
2026, c.16, s.2
Notice of administrative penalty
2026, c.16, s.2
45.4(1)In addition to the case referred to in paragraph 45.2(2)(c), the Commissioner shall impose an administrative penalty by issuing a notice of administrative penalty
(a) if the eligible business does not comply with any provision mentioned in the notice of non-compliance within the time period referred to in subsection 45.1(6) or extended under paragraph 45.2(2)(b), or
(b) if the eligible business does not submit written submissions within the time period referred to in subsection 45.2(1).
45.4(2)The Commissioner shall serve a notice of administrative penalty on the eligible business
(a) by registered mail to the eligible business’s latest known address, or
(b) in the manner in which personal service may be made under the Rules of Court.
45.4(3)Service by registered mail is deemed to have been effected five days after the date the notice of administrative penalty is deposited in the mail.
45.4(4)The notice of administrative penalty shall include the following information:
(a) the name of the eligible business required to pay the administrative penalty;
(b) the provision listed in Column 1 of Schedule B and the date on which the violation or failure to comply occurred;
(c) the amount of the administrative penalty;
(d) when and how the administrative penalty shall be paid; and
(e) information with respect to the right for a review of the Commissioner’s decision as provided for in section 45.5.
45.4(5)A notice of administrative penalty shall not be served more than one year after the Commissioner first had knowledge of the violation or failure to comply.
2026, c.16, s.2
Review of administrative penalty
2026, c.16, s.2
45.5(1)An eligible business that is the subject of a notice of administrative penalty may request that the Minister review the Commissioner’s decision to issue the notice by applying to the Minister on the form provided by the Minister within 15 days after being served with the notice.
45.5(2)After receiving a request for a review under subsection (1), the Minister shall conduct the review of the decision by holding a hearing to consider the matter as soon as the circumstances permit.
45.5(3)The Minister shall not make a determination with respect to a review unless the Minister has given the eligible business that is the subject of the notice of administrative penalty an opportunity to make representations in writing or orally.
45.5(4)Following the Minister’s review, the Minister may uphold, vary or rescind the decision of the Commissioner.
45.5(5)The eligible business that is the subject of the notice of administrative penalty may appeal the decision of the Minister to The Court of King’s Bench of New Brunswick.
2026, c.16, s.2
Payment of administrative penalty
2026, c.16, s.2
45.6(1)If an eligible business that is the subject of a notice of administrative penalty does not apply for a review under section 45.5, the eligible business shall pay the administrative penalty set out in the notice within 15 days after being served with the notice.
45.6(2)If an eligible business that is the subject of a notice of administrative penalty applies for a review under section 45.5 and the Minister confirms or varies the Commissioner’s decision, the eligible business shall pay the administrative penalty within 15 days after the Minister makes the decision.
45.6(3)The administrative penalty shall be payable to the Minister.
45.6(4)For the purposes of this Act only, an eligible business that pays an administrative penalty is deemed to have violated or failed to comply with the provision listed in Column 1 of Schedule B in respect of which the payment of the administrative penalty was made.
2026, c.16, s.2
Amount of the administrative penalty
2026, c.16, s.2
45.7The amount of an administrative penalty is as follows:
(a) for a first violation or failure to comply with the provision listed in Column 1 of Schedule B, the minimum amount listed beside it in Column 2 of Schedule B;
(b) for a second violation or failure to comply with the provision listed in Column 1 of Schedule B, an amount equal to twice the minimum amount listed beside it in Column 2 of Schedule B; and
(c) for a third or subsequent violation or failure to comply with the provision listed in Column 1 of Schedule B, the maximum amount listed beside it in Column 2 of Schedule B.
2026, c.16, s.2
Failure to pay administrative penalty
2026, c.16, s.2
45.8If an eligible business that is required to pay an administrative penalty under subsection 45.6(1) or (2) fails to do so, the Minister may revoke the registration of the eligible business under paragraph 23(1)(a).
2026, c.16, s.2
Certificate as evidence
46(1)In a prosecution or other proceeding under this Act, a certificate signed by the Minister or purporting to be signed by the Minister stating any of the following may be adduced in evidence without proof of the appointment, authority or signature of the Minister and, when so adduced and in the absence of evidence to the contrary, is proof of the facts stated in the certificate and if the person named in the certificate has the same name as the accused, that the person named in the certificate is the accused:
(a) that a specified amount is the amount that is due and payable by a person under this Act;
(b) that a person failed to keep records or books of account in the form, containing the information and in the place required by this Act and the regulations;
(c) that a person failed to make an annual return in the form and manner and at the time required by this Act and the regulations;
(d) that a person at a specified time refused to permit an auditor to carry out an audit or examination under this Act or obstructed or interfered with an audit or examination being carried out by an auditor under this Act; or
(e) that a person at a specified time refused to permit an inspector to carry out an examination under this Act or obstructed or interfered with an examination being carried out by an inspector under this Act.
46(2)A report, certificate or other document signed by the Minister or purporting to be signed by the Minister may be adduced in evidence in a court without proof of the appointment, authority or signature of the Minister and, when so adduced and in the absence of evidence to the contrary, is proof of the facts stated in it.
2003, c.S-9.05, s.38
Notice of objection
2026, c.16, s.2
46.1(1)In this section, “decision” means
(a) a decision to refuse to register or to revoke the registration of a corporation or cooperative,
(b) a decision to recover an amount from an eligible investor,
(c) a decision to refuse to issue a tax credit certificate to an eligible investor,
(d) a decision to impose a penalty on a corporation or cooperative registered under section 14 that has failed to meet the investment requirements prescribed by regulation, or
(e) a decision to issue a certificate stating an amount that is due and payable, including interest, if any.
46.1(2)An eligible investor, corporation or cooperative affected by a decision may, personally or by a solicitor, within 30 days after service of the decision, serve on the Commissioner a notice of objection in duplicate in the form provided by the Minister setting out the reasons for the objection and all relevant facts.
46.1(3)A notice of objection under this section is sufficiently served if delivered to the office of the Commissioner or sent by ordinary or registered mail addressed to the Commissioner.
46.1(4)On receipt of a notice of objection, the Commissioner shall within 60 days consider the decision and vacate, confirm or vary the decision, and the Commissioner shall notify the person affected by personal service or by ordinary or registered mail.
2026, c.16, s.2
Appeal to Minister
2026, c.16, s.2
46.2(1)If the eligible investor, corporation or cooperative is dissatisfied with the decision of the Commissioner under subsection 46.1(4), the eligible investor, corporation or cooperative may, within 30 days after receiving notice of the decision, appeal from the decision to the Minister.
46.2(2)An eligible investor, a corporation or a cooperative may institute an appeal to the Minister by sending to the Minister and Commissioner by ordinary or registered mail, or by delivery to the offices of both, a notice of appeal in the form provided by the Minister.
46.2(3)The notice of appeal shall set out the grounds of the appeal and the facts relative to the appeal and be accompanied by any supporting documentation or other pertinent information.
46.2(4)Within 30 days after receipt of the notice of appeal, the Commissioner shall submit a written response to the Minister and provide a copy of the response to the appellant.
46.2(5)Subject to the regulations, the Minister may conduct the appeal on the basis of the notice of appeal, the supporting documentation and other pertinent information referred to in subsection (3) and the Commissioner’s written submission, or the Minister may hold an oral hearing if the Minister considers that the holding of an oral hearing is necessary in order to act in a procedurally fair manner.
46.2(6)Within 30 days after the receipt of the Commissioner’s written submission, the Minister shall fix the date for considering the appeal and give notice to the Commissioner and the appellant of the method by which the appeal will be conducted.
46.2(7)In the case of an oral hearing, the Minister shall specify the date, time and location of the hearing in the notice referred to in subsection (6).
46.2(8)The Minister may affirm, vary or reverse the decision of the Commissioner, and the Minister, having made the Minister’s decision, shall give the appellant written notice of the decision by personal service or by ordinary or registered mail.
2026, c.16, s.2
Appeal to The Court of King’s Bench of New Brunswick
2026, c.16, s.2
46.3(1)If the appellant is dissatisfied with the decision of the Minister under subsection 46.2(8), the appellant may, within 30 days after the date of service or mailing of notice of the Minister’s decision, appeal from the decision to The Court of King’s Bench of New Brunswick.
46.3(2)The appeal shall be commenced by serving on the Minister a notice of appeal in writing setting out the grounds of appeal and stating shortly the facts relative to the appeal.
2026, c.16, s.2
Procedures of The Court of King’s Bench of New Brunswick
2026, c.16, s.2
46.4For the purposes of section 46.3, sections 15 to 19 of the Revenue Administration Act apply with the necessary modifications.
2026, c.16, s.2
Appeal to Court of Appeal
2026, c.16, s.2
46.5A decision of The Court of King’s Bench of New Brunswick may be appealed to the Court of Appeal on any point of law raised on the hearing of the appeal, and the rules governing appeals to that Court from a decision of The Court of King’s Bench of New Brunswick apply to appeals under this section.
2026, c.16, s.2
Requirement to keep records
2026, c.16, s.2
46.6An eligible investor, a corporation or a cooperative that serves a notice of objection shall keep all records relating to the matter of the objection until the objection is disposed of and any appeal is disposed of or the time for initiating any such appeal has expired.
2026, c.16, s.2
Effect of appeal
2026, c.16, s.2
46.7Neither the giving of a notice of appeal by any person nor any delay in the hearing of an appeal shall in any way affect the due date or interest or any liability for payment provided under this Act in respect of any amounts due to the Crown in right of the Province that are the subject matter of the appeal, but in the event of the liability to pay an amount due being set aside or the amount due being reduced on appeal, the Minister shall refund the amount or excess amount that has been paid to the Crown in right of the Province and any additional interest paid on the amount.
2026, c.16, s.2
Administration of the Act and designations
2026, c.16, s.2
47(1)The Minister is responsible for the administration of this Act.
47(2)The Minister may designate one or more persons to act on the Commissioner’s behalf or the Minister’s behalf for the purposes of this Act.
47(3)The Commissioner shall act under the instructions of the Minister, has general supervision over all matters relating to this Act and shall perform all duties that are assigned to the Commissioner by this Act, the Lieutenant-Governor in Council or the Minister.
47(4)The Commissioner may designate one or more persons to act on the Commissioner’s behalf for the purposes of this Act.
47(5)The Commissioner may, in the course of the Commissioner’s employment, issue certificates and execute or receive all other documents, affidavits, declarations and affirmations for the purposes of or incidental to the administration or enforcement of this Act.
47(6)The Deputy Minister may exercise the authority of the Commissioner under this Act.
47(7)The Deputy Minister may designate one or more persons to act on the Deputy Minister’s behalf for the purposes of this Act.
2003, c.S-9.05, s.5; 2026, c.16, s.2
Regulations
48(1)The Lieutenant-Governor in Council may make regulations
(a) respecting forms for the purpose of this Act;
(b) prescribing any matter that is to be prescribed under this Act or is to be determined, required or permitted by regulation;
(c) requiring any person to supply information or returns respecting any matter required in ensuring compliance with this Act;
(c.1) prescribing codes for the purposes of the definition “strategic sector” in section 1;
(d) prescribing fees for the purposes of sections 5, 13 and 20;
(e) establishing periods of time to be taken into account in calculations or determinations under this Act or the regulations, and varying periods set by this Act;
(f) respecting the manner and effective date of revocation of a certificate of registration by the Minister;
(g) respecting the filing of annual returns by a corporation registered under this Act;
(h) prohibiting rights and restrictions for the purposes of subparagraph 10(1)(e)(iv);
(i) respecting the penalty referred to in subsection 18(3), including the amount of the penalty, the time limit for paying the penalty, interest on the penalty and a refund of the penalty;
(i.1) governing the practice and procedure on appeals to the Minister;
(j) defining any word or expression used in but not defined in this Act for the purposes of this Act, the regulations, or both;
(k) respecting any other matter that may be necessary for the proper administration of this Act.
48(2)A regulation made under subsection (1) may be retroactive in its operation.
2003, c.S-9.05, s.39; 2009, c.14, s.6; 2014, c.45, s.9; 2026, c.16, s.2
Saving provision
2019, c.24, s.195
49A certificate of registration issued under section 15 to an association and that was valid immediately before the commencement of this section, continues to be valid and the definition of “eligible share”, as it read immediately before the commencement of this section, applies with respect to that certificate of registration for the purpose of subsection 15(2).
2019, c.24, s.195
SCHEDULE A
Column 1
Provision
Column 2
Category of Offence
 
32(1).............. 
F
33(1).............. 
F
42.............. 
F
43(1).............. 
F
43(2).............. 
F
44(1)(a).............. 
F
44(1)(b).............. 
F
44(1)(c)..............
F
44(4).............. 
B
2003, c.S-9.05, Schedule A
SCHEDULE B
Column 1
Column 2
Provision  
Minimum and maximum amounts of the administrative penalty
 
 32(1).............. 
 $240 –  $10,200
 33(1).............. 
 $240 –  $10,200
 42..............
 $240 –  $10,200
 43(1).............. 
 $240 –  $10,200
 43(2)..............
 $240 –  $10,200
 44(1)(a).............. 
 $240 –  $10,200
 44(1)(b).............. 
 $240 –  $10,200
 44(1)(c).............. 
 $240 –  $10,200
 44(4).............. 
 $140 –  $640
2026, c.16, s.2
N.B. This Act was proclaimed and came into force February 9, 2017.
N.B. This Act is consolidated to August 4, 2026.