Labour Sponsored Venture Capital Corporations (Tax) Regulation
AI-assisted research summary: This regulation sets filing and reporting requirements for labour-sponsored venture capital corporations, including what information to provide on forms and to the treasurer, and it sets prescribed amounts and interest rates used under the Act.
Labour Sponsored Venture Capital Corporations (Tax) Regulation, M.R. 235/92 The Income Tax Act , C.C.S.M. c. I10 Regulation 235/92 Registered December 18, 1992 bilingual version (HTML) Definition, "Act" 1 In this regulation, "Act" means The Income Tax Act . M.R. 261/97 Form and manner of designating amount 2 In respect of each subscription for approved shares received from an individual who is or will be the first person, other than a broker or dealer in securities, to be a registered holder thereof, a labour-sponsored venture capital corporation shall, on a form delivered to the individual, (a) designate the amount subscribed and paid for by the individual for the approved shares; (b) indicate separately the portion subscribed or paid within the first 60 days of the year and the portion subscribed or paid after that time; and (c) indicate the amount of the Labour Sponsored Funds Tax Credit, the name, address and social insurance number of the individual and the calendar year in which the shares were purchased. M.R. 261/97 3 Repealed. M.R. 36/95; 261/97 Approved share limit 4 The amount prescribed for the purpose of clause (b) of the definition "approved share limit" in subsection 11.1(1) of the Act is (a) for the selling period ending in 1999, $35,000,000.; and (b) for the selling period ending in 2000 or any subsequent year, $30,000,000. M.R. 36/95; 48/96; 252/96; 261/97; 136/2000 Interest 5 For the purposes of subsection 11.3(1) of the Act, the rate of interest per month is (a) for the period January 1 to June 30 in each year, one twelfth of the sum of the prime lending rate of the Royal Bank of Canada plus 2%, as that prime stands on January 1 of that year; and (b) for the period July 1 to December 31 in each year, one twelfth of the sum of the prime lending rate of the Royal Bank of Canada plus 2%, as that prime stands on July 1 of that year. M.R. 261/97 Returns 6 For the purposes of subsection 11.5(3) of the Act, where a labour-sponsored venture capital corporation withholds and remits tax to the treasurer, the corporation shall provide (a) the name, social insurance number and current address of the vendor and the original value and the redemption value of the share; (b) the taxation year or years for which receipts have been issued in respect of the redeemed share; and (c) where the vendor of the share is not the first purchaser to have been issued a tax receipt in respect of the share, the first purchaser's copy of the original tax receipt and the name, social insurance number and address of the first purchaser at the time the original tax receipt was issued. M.R. 261/97