25 (1)-(2.2) Repealed:  2011, c. 9, Sched. 7, s. 3. Issuance of tax credit certificates (3) Subject to subsection (11), a labour sponsored investment fund corporation shall issue a tax credit certificate on behalf of the Minister to each eligible investor who has subscribed for a Class A share of the corporation during a calendar year ending before 2012 or within 60 days after the end of that calendar year in respect of an investment corporation tax credit to be claimed by the eligible investor in respect of that share under the Income Tax Act or the Taxation Act, 2007.  2005, c. 31, Sched. 3, s. 4 (1); 2008, c. 7, Sched. D, s. 3 (1); 2008, c. 19, Sched. V, s. 2 (11). Form of certificate (3.1) A labour sponsored investment fund corporation shall issue a tax credit certificate in a form approved by the Minister and must indicate in the certificate the taxation year in respect of which the tax credit may be claimed.  2004, c. 31, Sched. 7, s. 13 (1). Amount of tax credit (4) The amount of the tax credit referred to in subsection (3) that may be claimed for a taxation year shall be determined in accordance with the following rules: 1. The amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for the 1991 taxation year is 20 per cent of the lesser of, i. the total amount of equity capital received by the corporation from the eligible investor after November 6, 1991 and before March 1, 1992 for Class A shares issued by the corporation, and ii. $3,500. 2. The amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for the 1992 taxation year is 20 per cent of the lesser of, i. the total amount of equity capital received by the corporation from the eligible investor between January 1, 1992 and March 1, 1993 for Class A shares issued by the corporation, other than any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for 1991, and ii. if the Class A shares were paid for during the first 60 days of 1992, $3,500 if a tax credit was deducted in determining the amount of tax payable under the Income Tax Act for the 1991 taxation year in respect of those Class A shares and $5,000 otherwise. 3. The amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for the 1993, 1994 or 1995 taxation year is 20 per cent of the lesser of, i. the total amount of equity capital received by the corporation from the eligible investor between January 1 of the taxation year and the 60th day of the following year for Class A shares issued by the corporation, other than any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the previous taxation year, and ii. $5,000. 4. The amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for the 1996 taxation year is the sum of, i. the lesser of $1,000 and the amount equal to 20 per cent of the equity capital received by the corporation from the eligible investor after 1995 and before May 7, 1996 for Class A shares issued by the corporation, other than any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the 1995 taxation year, and ii. the lesser of, A. the amount by which $525 exceeds the amount, if any, determined under subparagraph i, and B. the amount equal to 15 per cent of the equity capital received by the corporation from the eligible investor after May 6, 1996 and before March 2, 1997 for Class A shares issued by the corporation. 5. The amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for the 1997 taxation year is the lesser of, i. $525, and ii. an amount equal to 15 per cent of the equity capital received by the corporation from the eligible investor after 1996 and before March 2, 1998 for Class A shares issued by the corporation, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the 1996 taxation year. 6. The amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act
for the 1998, 1999 or 2000 taxation year is the lesser of, i. $750, and ii. an amount equal to 15 per cent of the equity capital received by the corporation from the eligible investor, or from a qualifying trust for the eligible investor, after the end of the preceding taxation year and before the day that is 61 days after the end of the taxation year for Class A shares issued by the corporation, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the preceding year. 7. If the corporation is a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act
for any taxation year that is after 2000 but ends before 2007 is the lesser of, i. $1,000, and ii. an amount equal to 20 per cent of the equity capital received by the corporation from the eligible investor, or from a qualifying trust for the eligible investor, for Class A shares issued by the corporation that are purchased after the end of the preceding taxation year and before the day that is 61 days after the end of the taxation year, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the preceding year. 7.0.1 If the corporation is a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act or the Taxation Act, 2007 for any taxation year that is after 2006 but ends before 2010 is the lesser of, i. $1,500, and ii. an amount equal to 20 per cent of the equity capital received by the corporation from the eligible investor, or from a qualifying trust for the eligible investor, for Class A shares issued by the corporation that are purchased after the end of the preceding taxation year and before the day that is 61 days after the end of the taxation year, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the preceding year. 7.1 If the corporation is a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Taxation Act, 2007 for the 2010 taxation year is the lesser of, i. $1,125, and ii. an amount equal to 15 per cent of the equity capital received by the corporation from the eligible investor, or from a qualifying trust for the eligible investor, for Class A shares issued by the corporation that are purchased after the end of the preceding taxation year and before the day that is 61 days after the end of the taxation year, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the preceding year. 7.2 If the corporation is a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Taxation Act, 2007 for the 2011 taxation year is the lesser of, i. $750, and ii. an amount equal to 10 per cent of the equity capital received by the corporation from the eligible investor, or from a qualifying trust for the eligible investor, for Class A shares issued by the corporation that are purchased after the end of the preceding taxation year and before the day that is 61 days after the end of the taxation year, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the preceding year. 8. If the corporation is not a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act for any taxation year that is after 2000 but ends before 2007 is the lesser of, i. $750, and ii. an amount equal to 15 per cent of the equity capital received by the corporation from the eligible investor, or from a qualifying trust for the eligible investor, for Class A shares issued by the corporation that are purchased after the end of the preceding taxation year and before the day that is 61 days after the end of the taxation year, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the preceding year. 8.0.1 If the corporation is not a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Income Tax Act or the Taxation Act, 2007 for any taxation year that is after 2006 but ends before 2010 is the lesser of, i. $1,125, and ii. an amount equal to 15 per cent of the equity capital received by the corporation from the eligible investor, or from a qualifying trust for the eligible investor, for Class A shares issued by the corporation that are purchased after the end of the preceding taxation year and before the day that is 61 days after the end of the taxation year, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the preceding year. 8.1 If the corporation is not a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Taxation Act, 2007 for the 2010 taxation year is the lesser of, i. $750, and ii. an amount equal to 10 per cent of the equity capital received by the corporation from the eligible investor, or from a qualifying trust for the eligible investor, for Class A shares issued by the corporation that are purchased after the end of the preceding taxation year and before the day that is 61 days after the end of the taxation year, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the preceding year. 8.2 If the corporation is not a research oriented investment fund during the calendar year in which it issues the Class A shares referred to in subsection (3), the amount of the tax credit deductible in determining the amount of tax payable under the Taxation Act, 2007
for the 2011 taxation year is the lesser of, i. $375, and ii. an amount equal to 5 per cent of the equity capital received by the corporation from the eligible investor, or from a qualifying trust for the eligible investor, for Class A shares issued by the corporation that are purchased after the end of the preceding taxation year and before the day that is 61 days after the end of the taxation year, excluding any portion of the equity capital that was taken into consideration in determining the amount of a tax credit for the preceding year.  1996, c. 24, s. 7; 1998, c. 34, s. 21 (1); 2000, c. 42, s. 7 (2); 2004, c. 16, s. 1 (2); 2005, c. 31. Sched. 3, s. 4 (2-5); 2008, c. 7, Sched. D, s. 3 (2-13); 2008, c. 19, Sched. V, s. 2 (12-17). Tax credit, qualifying financial institution (4.1) Where a qualifying financial institution, or a specified corporation or insurance corporation related to a qualifying financial institution for the purposes of section 66.1 of the Corporations Tax Act, is the beneficial and registered owner of Class A shares of a community small business investment fund corporation purchased directly from the community small business investment fund corporation before January 1, 2004, the qualifying financial institution may, subject to the approval of the Minister, make an application in a form approved by the Minister for a tax credit under the Corporations Tax Act, and the Minister may allow a tax credit to the financial institution equal to 30 per cent of the amount of equity capital paid to the community small business investment fund corporation on the issue of Class A shares.  1997, c. 43, Sched. C, s. 15; 1998, c. 34, s. 21 (2); 1999, c. 9, s. 63 (1); 2001, c. 23, s. 16 (1); 2002, c. 22, s. 26 (2); 2004, c. 16, s. 1 (2). Additional credit (4.2) If a community small business investment fund corporation makes one or more eligible investments under Part III.1 in a particular year, the Minister may allow a tax credit under the Corporations Tax Act or the Taxation Act, 2007 to the qualifying financial institution equal to 30 per cent of the amount calculated using the formula, A × B in which, “A” is the amount invested in the year by the community small business investment fund corporation in eligible investments, and “B” is the percentage of Class A shares of the community small business investment fund corporation that are held by the qualifying financial institution or by a specified corporation or insurance corporation related to the qualifying financial institution for the purposes of section 66.1 of the Corporations Tax Act or subdivision b of Division E of Part III of the Taxation Act, 2007. 1998, c. 34, s. 21 (3); 2004, c. 16, s. 1 (2); 2008, c. 19, Sched. V, s. 2 (18, 19). Investment incentive (4.3) A qualifying individual or qualifying corporation may apply for an investment incentive if the individual or corporation is the beneficial and registered owner of Class A shares of a community small business investment fund corporation purchased directly from the corporation before January 1, 2004.  1999, c. 9, s. 63 (2); 2001, c. 23, s. 16 (2); 2002, c. 22, s. 26 (3); 2004, c. 16, s. 1 (2). Additional incentive (4.4) A qualifying individual or qualifying corporation may apply for an additional investment incentive if the individual or corporation holds Class A shares of a community small business investment fund corporation that makes one or more eligible investments under this Part.  1999, c. 9, s. 63 (2); 2004, c. 16, s. 1 (2). Application for incentive (4.5) An application for an investment incentive or an additional investment incentive shall be made to the Minister and shall be in a form approved by the Minister.  1998, c. 34, s. 21 (4); 2004, c. 16, s. 1 (2). Same (4.6) The Minister may authorize a community small business investment fund corporation to apply on behalf of its shareholders for investment incentives and additional investment incentives, and may impose conditions with respect to the authorization.  1998, c. 34, s. 21 (4); 2004, c. 16, s. 1 (2). Payment of incentives (4.7) Subject to subsection (4.8), the Minister shall pay the investment incentive and, if applicable, the additional investment incentive to the qualifying individual or qualifying corporation if the Minister is satisfied of the following: 1. That the community small business investment fund corporation and its eligible investors are complying with the corporation’s approved investment plan. 2. That the shares to which the incentive relates do not constitute a type of security that entitles the holder to receive any other financial assistance from a government, municipality or public authority in respect of the acquisition of those shares. 3. That the incentive relates to shares purchased by the individual or corporation directly from the corporation issuing the shares. 4. That such other requirements as may be prescribed are met.  1998, c. 34, s. 21 (4); 1999, c. 9, s. 63 (3, 4); 2004, c. 16, s. 1 (2). Exception (4.8) The Minister shall not pay the investment incentive and, if applicable, the additional investment incentive to the qualifying individual or qualifying corporation if the Minister considers that the community small business investment fund corporation, or its directors, officers or shareholders, are conducting the affairs of the corporation in a manner contrary to the spirit and intent of this Act, whether or not this Act or the regulations have been contravened.  1998, c. 34, s. 21 (4); 1999, c. 9, s. 63 (5); 2004, c. 16, s. 1 (2). Amount of incentive (4.9) The amount of the investment incentive referred to in subsection (4.3) is the lesser of, (a) $37,500; and (b) 7.5 per cent of the amount paid by the qualifying individual or qualifying corporation before January 1, 2004 to the community small business investment fund corporation on the issue of Class A shares.  1998, c. 34, s. 21 (4); 1999, c. 9, s. 63 (6); 2001, c. 23, s. 16 (3); 2002, c. 22, s. 26 (4); 2004, c. 16, s. 1 (2). Amount of additional incentive (4.10) The amount of the additional incentive referred to in subsection (4.4) is the lesser of, (a) $37,500; and (b) 7.5 per cent of the amount invested by the community small business investment fund corporation in eligible investments under Part III.1 multiplied by the percentage of Class A shares of the corporation that are held by the qualifying individual or qualifying corporation.  1998, c. 34, s. 21 (4); 1999, c. 9, s. 63 (7); 2004, c. 16, s. 1 (2). (5), (6) Repealed:  2011, c. 9, Sched. 7, s. 3. Qualifications (7) The Minister or a labour sponsored investment fund corporation, as applicable, shall not issue a tax credit certificate under this section unless the Minister or the labour sponsored investment fund corporation, as the case may be, is satisfied that, (a) the corporation and its eligible investors are complying with the corporation’s investment plan; (b) unless permitted by the regulations, the Class A shares to which the tax credit relates do not constitute a type of security that entitles the holder, in respect of the acquisition of those shares, (i) to claim against tax otherwise payable a tax credit under the Income Tax Act, the
Income Tax Act (Canada), the Corporations Tax Act, or the Taxation Act, 2007, other than a labour sponsored investment fund corporation tax credit under the Income Tax Act, the Taxation Act, 2007 or section 127.4 of the Income Tax Act (Canada), (ii) to claim a deduction from income under the Income Tax Act, the Income Tax Act (Canada), the Corporations Tax Act, or the Taxation Act, 2007, or (iii) to receive any other financial assistance from any government, municipality or public authority; (c) no tax credit has been previously allowed under the Income Tax Act, the Corporations Tax Act or the Taxation Act, 2007 in respect of the shares to which the tax credit certificate relates; (d) the Class A shares to which the tax credit certificate relates were purchased and acquired directly from the investment corporation issuing the shares; and (e) there has been compliance with any other prescribed conditions.  1992, c. 18, s. 25 (7); 1997, c. 43, Sched. C, s. 23 (1, 2); 2002, c. 22, s. 26 (5); 2004, c. 16, s. 1 (2); 2004, c. 31, Sched. 7, s. 13 (3-6); 2008, c. 19, Sched. V, s. 2 (20); 2011, c. 9, Sched. 7, s. 4 (1). (8) Repealed:  2011, c. 9, Sched. 7, s. 4 (2). Agent (9) The Minister may enter into an arrangement with a community small business investment fund corporation upon such terms and conditions as the Minister considers advisable to authorize the corporation as agent for the Minister to issue tax credit certificates under this section on behalf of the Minister.  2004, c. 31, Sched. 7, s. 13 (8); 2011, c. 9, Sched. 7, s. 4 (3). Minister may establish terms and conditions (10) The Minister shall establish, and a labour sponsored investment fund corporation shall comply with, such terms and conditions as the Minister considers necessary relating to the issuance by the labour sponsored investment fund corporation of tax credit certificates under subsection (3) on behalf of the Minister.  2004, c. 31, Sched. 7, s. 13 (8). Order to stop issuing certificates (11) The Minister shall order the labour sponsored investment fund corporation to stop issuing tax credit certificates until further notice if the Minister is of the opinion, (a) that the labour sponsored investment fund corporation has contravened subsection (3.1) or (7) or has failed to comply with a term or condition established under subsection (10); or (b) that the corporation or its directors, officers or shareholders are conducting the business or affairs of the labour sponsored investment fund corporation in a manner that is contrary to the spirit and intent of this Act, whether or not there has been a contravention of this Act or the regulations.  2004, c. 31, Sched. 7, s. 13 (8). Section Amendments with date in force (d/m/y) 1994, c. 17, s. 88 - 6/05/1994; 1996, c. 24, s. 7 - 7/05/1996; 1997, c. 43, Sched. C, s. 15, 23 - 7/05/1997; 1998, c. 34, s. 21 (1, 2) - 18/12/1998; 1998, c. 34, s. 21 (3) - 7/05/1997; 1998, c. 34, s. 21 (4) - 1/01/1998; 1998, c. 34, s. 21 (5) - 1/03/1998 - see 1992, c. 18, s. 25 (11) - 31/12/1998; 1999, c. 9, s. 63 - 14/12/1999 2000, c. 42, s. 7
- 21/12/2000 2001, c. 23, s. 16
- 5/12/2001 2002, c. 22, s. 26
- 9/12/2002 2004, c. 16, s. 1 (2) - 1/01/2004; 2004, c. 31, Sched. 7, s. 13 - 16/12/2004 2005, c. 31, Sched. 3, s. 4 - 15/12/2005 2008, c. 7, Sched. D, s. 3 - 1/01/2007; 2008, c. 19, Sched. V, s. 2 (11-20) - 1/01/2009 2009, c. 18, Sched. 7, s. 2 - 5/06/2009 2011, c. 9, Sched. 7, s. 3, 4 - 12/05/2011