Fourth

Session, 46th General Assembly

Elizabeth II, 2011

BILL 3

AN ACT TO AMEND THE

LABOUR-SPONSORED

VENTURE CAPITAL TAX CREDIT ACT

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

THOMAS W. MARSHALL, Q.C.

Minister of Finance and President of Treasury Board

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Labour-Sponsored Venture Capital Tax Credit

Act and associated regulations

to permit the transfer of

eligible shares of a labour-sponsored venture capital corporation into tax-free

savings account trusts; and

to permit tax-free savings

account trusts to acquire eligible shares of a labour sponsored venture capital

corporation.

A BILL

AN ACT TO AMEND THE LABOUR-SPONSORED

VENTURE CAPITAL TAX CREDIT ACT

Analysis

S.2 Amdt.

Definitions

2. NLR 153/04 Amdt.

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2004 cL-1.1

as amended

1. Paragraph 2(

c) of the Labour-Sponsored Venture Capital Tax Credit Act is repealed and the

following substituted:

(c) "eligible investor" means an

individual who is a resident of the province, who is at least 19 years of age,

and who

(

i) subscribes for an eligible share,

(ii) makes contributions to a trust that is

governed by a Registered Retirement Savings Plan and those contributions, and

no other funds, can reasonably be considered to have been used by the trust to

acquire or subscribe for an eligible share, and the annuitant under the plan is

the individual or a spouse of the individual, or

(iii) makes contributions to a trust that is

governed by a Tax-Free Savings Account and those contributions, and no other

funds, can reasonably be considered to have been used by the trust to acquire

or subscribe for an eligible share;

NRL 153/04

Amdt.

2. Subparagraph 3(1)(a)(ii) of the Labour-Sponsored

Venture Capital Tax Credit Regulations

is repealed and the following substituted:

(ii) to a registered retirement savings plan, a

registered retirement income fund or a tax-free savings account under the Income Tax Act (Canada) ,

(ii.1) by a registered retirement savings plan, a

registered retirement income fund, or a tax-free savings account under the Income Tax Act (Canada) to the annuitant

under the plan or fund, or the beneficiary of the account,

William E. Parsons, Queen's Printer