Community Small Business Investment Funds Act, 1992

Bills that amended this Act0

No published amendment links yet for this Act.

Sections137

• [s0]

  PART I GENERAL

• 1Interpretation

  1 (1) In this Act, “Canadian partnership” has the meaning assigned by section 102 of the Income Tax Act (Canada); (“société de personnes canadienne”) “Class A share”, in respect of a corporation, means a share of a class of shares that entitle the holders thereof to, (a) receive notice of and, subject to the legislation under which the corporation is organized, to attend and vote at all meetings of the shareholders of the corporation, (b) receive dividends at the discretion of the board of directors of the corporation, and (c) receive, on dissolution of the corporation, all the assets of the corporation that remain after payment of all amounts payable to the holders of all other classes of shares of the corporation; (“action de catégorie A”) “Class B share”, in respect of a corporation, means a share of a class of shares that do not entitle the holders thereof to receive dividends but do…

• 1.
• 2Register of investment corporations

  2 The Minister shall maintain a register of all investment corporations and the register shall be open for public inspection during normal office hours. 1992, c. 18, s. 2; 1997, c. 43, Sched. C, s. 23 (1); 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. C, s. 23 (1) - 7/05/1997 2004, c. 16, s. 1 (2) - 01/01/2004 Part II (ss. 3 to 11) Repealed: 2011, c. 9, Sched. 7, s. 2. Section Amendments with date in force (d/m/y) 1994, c. 17, s. 77 (1-3) - 6/05/1994; 1994, c. 17, s. 77 (4) - 3/12/1992; 1994, c. 17, s. 79, 80 (1, 11) - 15/10/1991; 1994, c. 17, s. 80 (5-8, 10, 14) - 3/12/1992; 1994, c. 17, s. 80 (2, 4, 9, 13, 15, 16) - 20/05/1993; 1994, c. 17, s. 80 (3, 12), 81 - 6/05/1994; 1997, c. 43, Sched. C, s. 3, 4, 23 (1) - 7/05/1997; 1999, c. 9, s. 51 - 27/11/1998 2000, c. 42, s. 2 - 1/01/2001 2002, c. 22, s. 17-19 - 9/12/2002 2004, c. 16, s. 1 (2) - 01/0…

• 2.
• PART II EMPLOYEE OWNERSHIP LABOUR SPONSORED VENTURE CAPITAL CORPORATIONS
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  PART III LABOUR SPONSORED INVESTMENT FUND CORPORATIONS

• 12Definitions

  12 (1) In this Part, “eligible business” means a taxable Canadian corporation or Canadian partnership, (a) that is primarily engaged in eligible business activities, (b) that pays 50 per cent or more of its wages and salaries to employees whose ordinary place of employment is a permanent establishment of the corporation or partnership located in Ontario, (c) that has 50 per cent or more of its full-time employees employed in respect of eligible business activities carried on by the corporation or partnership in Ontario, (d) that, at the time the labour sponsored investment fund corporation makes the investment in the taxable Canadian corporation or Canadian partnership, (i) has total gross assets, together with the total gross assets of all related corporations and partnerships, not exceeding $50,000,000, calculated in the prescribed manner, or such other amount as may be prescribed, (ii…

• 3.
• 13Application for registration of corporation

  13 (1) An employee organization may make application under this Part for registration of a corporation as a labour sponsored investment fund corporation to make investments in eligible businesses if the corporation has a permanent establishment in Ontario and, (a) the corporation is incorporated under the Business Corporations Act or the Canada Business Corporations Act; or (b) the corporation is registered under Part X.3 of the Income Tax Act (Canada). 1992, c. 18, s. 13 (1); 2004, c. 16, s. 1 (2). Proposal (2) An application under this section shall be made by filing with the Minister a proposal setting out, (a) the name of the corporation; (b) the location of the registered office or permanent establishment in Ontario of the corporation; (c) an investment plan for the corporation specifying, (i) the amount of equity capital to be raised on the issue of each class of shares of the corp…

• 4.
• 14Corporation qualifications

  14 (1) No corporation shall be registered under this Part unless, (a) the corporation complies with all provisions of the legislation under which it is organized, the Securities Act, this Act and, in the case of a corporation referred to in clause 13 (1) (b), the Income Tax Act (Canada); (b) the corporation has never previously carried on business other than the business related to obtaining registration under this Act or the Income Tax Act (Canada); (c) the articles of the corporation provide that the authorized capital of the corporation shall consist only of, (i) Class A shares that are issuable to eligible investors only, (ii) Class B shares that are issuable only to and may be held only by an employee organization, and (iii) such additional classes of shares as may be authorized, if the rights, privileges, restrictions and conditions attached to the shares are approved by the board …

• 5.
• 14.1Disposition of Class A shares

  14.1 (1) This section applies if a Class A share of a labour sponsored investment fund corporation that was issued after May 6, 1996 is redeemed, acquired or cancelled by the corporation less than eight years after the day on which the share was issued. 2001, c. 23, s. 11; 2004, c. 16, s. 1 (2). Tax payable (2) Subject to subsection (3), the person who was the shareholder immediately before the redemption, acquisition or cancellation of the Class A share shall pay a tax under this Part equal to the amount calculated using the formula, A × B in which, “A” is, (a) if the corporation issued the share on or before March 1, 2010, (i) 20 per cent if the corporation issued the share as a research oriented investment fund, or (ii) 15 per cent in any other case, (b) if the corporation issued the share after March 1, 2010 and on or before March 1, 2011, (i) 15 per cent if the corporation issued th…

• 6.
• 15Entitlement to registration

  15 (1) An employee organization is entitled to registration of a corporation by the Minister unless, (a) this Part has not been satisfied; or (b) the employee organization fails to file the material required by this Act or the regulations. 1992, c. 18, s. 15 (1); 2004, c. 16, s. 1 (2). Refusal to register (2) Subject to section 31, the Minister may refuse to register a corporation if, in the Minister’s opinion, the corporation is disentitled to registration under subsection (1). 1992, c. 18, s. 15 (2); 2004, c. 16, s. 1 (2). Idem (3) Subject to section 31, the Minister may refuse to register a corporation if, in the Minister’s opinion, the proposed investment or the actions of the corporation or the employee organization do not comply with the spirit and intent of this Act and the regulations. 1992, c. 18, s. 15 (3); 2004, c. 16, s. 1 (2). Moratorium (4) Despite subsection (1), the Minis…

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• 16Issuance of certificate of registration

  16 (1) If the employee organization and the corporation comply with this Act, the Minister shall, (a) endorse on each duplicate of the proposal “Registered/Agréé” and the day, month and year of the registration thereof; (b) file one of the duplicates in the Minister’s office; (c) place the name of the corporation in the register of investment corporations as a labour sponsored investment fund corporation; and (d) issue to the corporation a certificate of registration to which the Minister shall affix the other duplicate. 1992, c. 18, s. 16 (1); 1997, c. 43, Sched. C, s. 23 (1); 2004, c. 16, s. 1 (2). Order by Minister (2) If the Minister considers it appropriate in order to carry out the intent of this Act, the Minister may, at the request of a labour sponsored investment fund corporation, order that the corporation be deemed to have been registered under this Act on a date before the da…

• 8.
• 16.1Research oriented investment fund

  16.1 (1) A labour sponsored investment fund corporation that intends to issue shares as a research oriented investment fund in an eligible year shall give notice of its intention to the Minister in a form approved by the Minister and shall do so by the end of the preceding year. 2000, c. 42, s. 6; 2004, c. 16, s. 1 (2); 2005, c. 31, Sched. 3, s. 3 (1). Status of corporation (2) A labour sponsored investment fund corporation that has given the notice required by subsection (1) for an eligible year is a research oriented investment fund during that year, (a) Repealed: 2001, c. 23, s. 12 (1). (b) if the corporation complied with the investment requirements and restrictions set out in sections 17 and 18.1 in the preceding year; (c) if the corporation conducted its business and affairs in accordance with this Act in the preceding year; and (d) if the aggregate cost of the corporation’s invest…

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• 10.
• 17Required investment levels

  17 (1) On December 31 of each year, a labour sponsored investment fund corporation shall hold eligible investments that have an aggregate cost of not less than the amount determined using the formula, A – B – C + D – E – F

• [s12]

  in which, “A” is 70 per cent of the aggregate amount of equity capital received by the corporation on the issue of Class A shares that are outstanding at the end of the applicable calendar year and that were issued before the sixty-first day of that year, but excluding Class A shares that have been outstanding, (a) for at least five years, in the case of shares issued before May 7, 1996, and (b) for at least eight years, in the case of shares issued after May 6, 1996; “B” is 20 per cent of the aggregate amount of equity capital received by the corporation on the issue of Class A shares that were issued during the period beginning on the sixty-first day of the year preceding the applicable calendar year and ending on the sixtieth day of the applicable year and that are outstanding at the end of that year; “C” is the aggregate amount of losses of the corporation that are realized on its el…

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• PART III LABOUR SPONSORED INVESTMENT FUND CORPORATIONS
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• 18Interpretation, eligible investment

  18 (1) An investment of a labour sponsored investment fund corporation is an eligible investment if, (a) the investment is made in an eligible business; (b) the investment is the purchase from the eligible business by the labour sponsored investment fund corporation of, (i) shares or a qualifying debt obligation issued by the eligible business in exchange for a consideration paid in money, if the eligible business is a corporation, (ii) an ownership interest in the eligible business or a qualifying debt obligation issued by the eligible business in exchange for a consideration paid in money, if the eligible business is a Canadian partnership, or (iii) Repealed: 2006, c. 9, Sched. C, s. 4 (1). (iv) an option or right granted by an eligible business that is a corporation, in conjunction with the issue of a share or a debt obligation that is an eligible investment, to acquire a share of the…

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• 12.
• 18.1Definitions

  18.1 (1) In this section, “listed company” means, in relation to a labour sponsored investment fund corporation, a business described in subsection (6); (“société cotée”) “small business” means a business that meets the requirements set out in subsection (11). (“petite entreprise”) 1999, c. 9, s. 56; 2001, c. 23, s. 13 (1, 2); 2004, c. 16, s. 1 (2). (2)-(4) Repealed: 2001, c. 23, s. 13 (3). Limit on investment in listed companies (5) During 2004, a labour sponsored investment fund corporation shall not make investments in eligible businesses that are listed companies to the extent that the cost of those investments exceeds 25 per cent of the total cost of all investments made in eligible businesses by the corporation in 2004 or in 2003, whichever is greater. 2006, c. 9, Sched. C, s. 5 (1). Status of listed company (6) For the purposes of subsection (5), a business is a listed company in …

• Section Amendments with date in force (d/m/y)
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  PART III.1 COMMUNITY SMALL BUSINESS INVESTMENT FUND CORPORATIONS

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• 14.
• 18.2Definitions

  18.2 (1) In this Part, “community sponsor” means an entity that may apply for registration of a community small business investment fund corporation under section 18.3; (“commanditaire communautaire”) “eligible aboriginal community” means, (a) a First Nation, or (b) an aboriginal community, other than a First Nation, that is designated for the purposes of this Act as an eligible aboriginal community by an order given by the Minister under subsection 18.3 (6); (“collectivité autochtone admissible”) “eligible business” means a taxable Canadian corporation or Canadian partnership that meets the criteria described in subsection (1.1) at the times specified in that subsection; (“entreprise admissible”) “eligible business activity” means a business that would be an active business carried on by a corporation for the purposes of section 125 of the Income Tax Act (Canada) if carried on by a corp…

• 18.3Application for registration

  18.3 (1) The following persons and organizations may apply under this Part as a community sponsor or sponsors for registration of a corporation as a community small business investment fund corporation to make investments in eligible businesses: 1. An upper-tier municipality, one or more lower-tier municipalities within an upper-tier municipality or a local municipality. 2. The council of a First Nation. 3. An organization designated under subsection (6) as a community sponsor for an aboriginal community, other than a First Nation, that is designated under that subsection as an eligible aboriginal community for the purposes of this Act. 4. One or more universities or colleges of applied arts and technology in Ontario, whose enrolment is counted for the purposes of calculating annual operating grants entitlements from the Government of Ontario. 5. One or more research institutes affiliate…

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• 18.4Corporation qualifications

  18.4 (1) No corporation may be registered under this Part unless, (a) the corporation was incorporated under the Business Corporations Act or the Canada Business Corporations Act and is in compliance with that Act and the Securities Act; (b) the corporation has never previously carried on business other than the business related to obtaining registration under this Act; (c) the articles of the corporation provide that the capital of the corporation shall consist of Class A shares issuable only to eligible investors under this Part and such other shares as may be authorized, if the rights, privileges, restrictions and conditions attached to the shares are approved by the board of directors of the corporation and the Minister; (d) the articles of the corporation restrict investment in shares of the corporation by a single investor or a related group to a maximum of $5 million; (d.1) the ar…

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• 18.5Entitlement to registration

  18.5 (1) A community sponsor is entitled to registration of a corporation by the Minister if all of the following requirements are met: 1. The community sponsor applies for registration under this Part and files the required documents before January 1, 2004. 2. The other requirements of this Part are satisfied. 3. The corporation has received offers from eligible investors to subscribe for its shares for an aggregate amount of not less than $2 million. 4. The corporation has received offers from eligible investors described in clauses (a) and (b) of the definition of “eligible investor” in subsection 18.2 (1) to subscribe for its shares for an aggregate amount greater than 25 per cent of the proposed capitalization of the corporation (as specified in the investment plan referred to in subsection 18.3 (2)). 1999, c. 9, s. 59; 2001, c. 23, s. 14; 2002, c. 22, s. 24; 2004, c. 16, s. 1 (2). …

• 18.6Issuance of certificate of registration

  18.6 On registration of a corporation under this Part, the Minister shall, (a) endorse on each duplicate of the proposal “Registered/Agréé” and the day, month and year of registration; (b) file one of the duplicate proposals in the Minister’s office; (c) place the name of the corporation in the register of investment corporations as a registered community small business investment fund corporation; and (d) issue to the corporation a certificate of registration to which the Minister shall affix the other duplicate proposal. 1997, c. 43, Sched. C, s. 10; 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. C, s. 10 - 7/05/1997 2004, c. 16, s. 1 (2) - 1/01/2004

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• 18.7Required investment levels

  18.7 A community small business investment fund corporation shall invest in eligible investments, (a) by the end of the 30th month following the end of its investment period, an amount equal to at least 35 per cent of the amount of equity capital it received on the issue of its Class A shares; and (b) by the end of the 72nd month following the end of its investment period, an amount equal to at least 70 per cent of the amount of equity capital it received on the issue of its Class A shares. 1997, c. 43, Sched. C, s. 10; 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. C, s. 10 - 7/05/1997 2004, c. 16, s. 1 (2) - 1/01/2004

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• 18.8Interpretation, eligible investment

  18.8 (1) An investment made by a community small business investment fund corporation is an eligible investment if, (a) the investment is made in a business that is an eligible business when the investment is made; (b) the investment is, (i) if the eligible business is a taxable Canadian corporation, the purchase from the eligible business by the community small business investment fund corporation of shares or a qualifying debt obligation issued by the eligible business in exchange for a consideration paid in money, (ii) if the eligible business is a Canadian partnership, the purchase of an ownership interest in the eligible business or a qualifying debt obligation issued by the eligible business in exchange for a consideration paid in money, (iii) the purchase of a guarantee provided by the community small business investment fund corporation in respect of a debt obligation that would,…

• 18.9Dividends and return of capital

  18.9 A community small business investment fund corporation shall not pay dividends or authorize any return of capital to an eligible investor within six years after the end of the investment period of the corporation and until at least 70 per cent of the equity capital received by the corporation on the issue of its Class A shares has been invested in eligible investments. 1997, c. 43, Sched. C, s. 10; 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. C, s. 10 - 7/05/1997 2004, c. 16, s. 1 (2) - 1/01/2004

• PART III.1 COMMUNITY SMALL BUSINESS INVESTMENT FUND CORPORATIONS
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• 18.10Actions requiring approval

  18.10 (1) A corporation that is or was registered under this Part and that has issued Class A shares shall not liquidate its assets or wind-up within 10 years after the date of its registration under this Part without the prior consent of the Minister. 1997, c. 43, Sched. C, s. 10; 2004, c. 16, s. 1 (2). Same (2) The Minister may give his consent subject to terms and conditions that the Minister considers reasonable in the circumstances. 1997, c. 43, Sched. C, s. 10; 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. C, s. 10 - 7/05/1997 2004, c. 16, s. 1 (2) - 1/01/2004

• Section Amendments with date in force (d/m/y) #24
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  PART III.2 ONTARIO COMMERCIALIZATION INVESTMENT FUNDs Interpretation

• 18.11Definitions

  18.11 (1) In this Part, “eligible business” means a taxable Canadian corporation or Canadian partnership that meets the criteria described in subsection (2); (“entreprise admissible”) “eligible business activity” and “intellectual property” have the meanings assigned by subsection 18.2 (1); (“activité commerciale admissible” et “propriété intellectuelle”) “eligible investor” means an accredited investor, as defined in National Instrument 45-106 entitled “Prospectus and Registration Exemptions”, as adopted by the Ontario Securities Commission, or a sponsor or an entity related to a sponsor, but does not include, unless otherwise prescribed, (a) a corporation registered under Part III as a labour sponsored investment fund corporation, (b) a corporation registered under Part III.1 as a community small business investment fund corporation, (c) the Business Development Bank of Canada incorpor…

• 18.12Policy intent

  18.12 The policy intent of this Part is to, (a) raise the profile of venture capital support for commercialization at Ontario-based research institutes; (b) encourage research institutes to partner with investors in commercializing research developed by the faculty, staff, students and alumni of research institutes; and (c) encourage the investment of capital to support the growth and development of new entrepreneurial firms created as a result of research developed through research institutes. 2004, c. 31, Sched. 7, s. 9; 2006, c. 9, Sched. C, s. 7. Section Amendments with date in force (d/m/y) 2004, c. 31, Sched. 7, s. 9 - 16/12/2004 2006, c. 9, Sched. C, s. 7 - 14/09/2005

• 18.13Application for registration

  18.13 (1) An eligible research institute may, as a sponsor, apply for registration under this Part of a corporation or a partnership as an Ontario commercialization investment fund if, (a) the corporation or partnership has a permanent establishment in Ontario; and (b) the eligible research institute demonstrates that it will be actively involved in the business and affairs of the corporation or partnership. 2004, c. 31, Sched. 7, s. 9. One or more sponsors permitted (2) An application for registration of a corporation or partnership under this Part may be made by one or more eligible research institutes as sponsors and an eligible research institute may apply to the Minister in the form and manner specified by the Minister to be included as a sponsor of a corporation or partnership that is already registered under this Part. 2004, c. 31, Sched. 7, s. 9. Institute may sponsor more than o…

• 18.14Entitlement to registration

  18.14 (1) A corporation or a partnership is entitled to be registered under this Part by the Minister if all of the following requirements are met: 1. The sponsor or sponsors of the corporation or partnership apply for registration under this Part and file the required documents before January 1, 2007. 2. The requirements of section 18.13 are satisfied. 2004, c. 31, Sched. 7, s. 9. Refusal (2) Subject to section 31, the Minister may refuse to register a corporation or a partnership if, in the Minister’s opinion, the corporation or the partnership is not entitled to be registered. 2004, c. 31, Sched. 7, s. 9. Same (3) Subject to section 31, the Minister may refuse to register a corporation or a partnership if, in the Minister’s opinion, the proposed investments or the actions of the corporation or the partnership, its officers, directors, shareholders, partners, or of a sponsor, do not co…

• 18.15Application for investment certificate and determination of grant

  18.15 (1) An Ontario commercialization investment fund may apply to a person designated by the Minister for a certificate, (a) indicating that an investment that has been made or is proposed to be made by the fund is an eligible investment; and (b) specifying the amount of an Ontario commercialization investment fund grant that would be available in respect of the investment. 2004, c. 31, Sched. 7, s. 9; 2006, c. 9, Sched. C, s. 8. Same (2) An application under subsection (1) in respect of an investment is required for a follow-on investment in the same eligible business, even if a certificate has been obtained under this section for the initial investment. 2004, c. 31, Sched. 7, s. 9. Additional information (3) An Ontario commercialization investment fund that applies for a certificate shall provide to the designated person the information specified by the person for the purposes of det…

• 18.16Application for Ontario commercialization investment fund grant

  18.16 (1) An Ontario commercialization investment fund that meets the conditions described in section 18.15 may, not later than March 31 of the year following the year in which the fund satisfied the conditions, apply for its first Ontario commercialization investment fund grant in respect of all eligible investments made by the end of the year in which the conditions were satisfied. 2004, c. 31, Sched. 7, s. 9. Application for subsequent grants (2) An Ontario commercialization investment fund that has met the conditions described in section 18.15 before the beginning of a year and has previously applied for a grant under subsection (1) may apply during the year for an Ontario commercialization investment fund grant in respect of eligible investments for which it has not previously applied for a grant under subsection (1) or this subsection. 2004, c. 31, Sched. 7, s. 9. Time for applying…

• 18.17Demand for repayment of grant

  18.17 If the Minister determines that an Ontario commercialization investment fund received a grant to which it was not entitled or received a grant in an amount in excess of the amount to which it was entitled, the Minister shall demand repayment of the grant or excess amount of the grant in accordance with subsection 30 (1). 2004, c. 31, Sched. 7, s. 9. Section Amendments with date in force (d/m/y) 2004, c. 31, Sched. 7, s. 9 - 16/12/2004

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• 18.18Annual report to the Minister

  18.18 Every Ontario commercialization investment fund shall provide annually to the Minister, in a form and in a manner approved by the Minister, such information with respect to its eligible investments as the Minister may require. 2004, c. 31, Sched. 7, s. 9. Section Amendments with date in force (d/m/y) 2004, c. 31, Sched. 7, s. 9 - 16/12/2004

• PART III.2 ONTARIO COMMERCIALIZATION INVESTMENT FUNDS
• Section Amendments with date in force (d/m/y) #33
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  PART IV ASSETS, CREDITS AND ADMINISTRATION

• 19Form of assets

  19 (1) An investment corporation shall maintain its assets in one or more of, (a) investments that are eligible investments for the particular investment corporation; (b) reserves; (c) investments that were eligible investments at the time they were acquired by the investment corporation; (d) the shares of any corporation the investment corporation is otherwise permitted under this Act to hold; (d.1) investments purchased from a labour sponsored investment fund corporation, (i) if the investment corporation purchasing and holding the investments is a labour sponsored investment fund corporation, and (ii) if, immediately before they were purchased, the investments were eligible investments of the labour sponsored investment fund corporation that sold them; and (e) any other prescribed form. 1992, c. 18, s. 19 (1); 1997, c. 43, Sched. C, s. 23 (1); 2004, c. 16, s. 1 (2); 2009, c. 34, Sched…

• 19.
• 20Investment restriction

  20 (1) An investment corporation shall not invest or maintain an investment in a business that is or was at any time an eligible business if the eligible business does not deal at arm’s length from the corporation or any of the directors of the corporation unless, (a) the eligible business would deal at arm’s length with the corporation but for the corporation’s interest as the holder of investments in the eligible business; or (b) the investment was approved by special resolution of the shareholders of the corporation before the investment was made. 1997, c. 43, Sched. C, s. 12 (1); 2004, c. 16, s. 1 (2). Exception (1.1) Clause (1) (b) does not apply to an investment corporation registered under Part III.1. 1997, c. 43, Sched. C, s. 12 (1); 2004, c. 16, s. 1 (2). Same (1.2) Subsection (1) does not apply to a community small business investment fund corporation operating within an eligib…

• 20.
• 21Material change in investments

  21 (1) An investment corporation shall notify the Minister in the form approved by the Minister of any material change in any of its investments within thirty days of the occurrence of the material change. 1992, c. 18, s. 21 (1); 1997, c. 19, s. 11 (1); 1997, c. 43, Sched. C, s. 23 (1); 2004, c. 16, s. 1 (2). Effect of material change (2) If there is a material change, the investment by an investment corporation shall remain an eligible investment, with respect to investments made before the material change, for a period of twelve months from the date of the material change. 1992, c. 18, s. 21 (2); 1997, c. 43, Sched. C, s. 23 (1); 2004, c. 16, s. 1 (2). Effect of material change, labour sponsored investment fund corporation (2.1) Despite subsection (2), if there is a material change, the investment by a labour sponsored investment fund corporation shall remain an eligible investment, wi…

• 21.
• 22Returns

  22 (1) Every investment corporation shall, within six months after the end of each fiscal year of the corporation, complete and file with the Minister a return in the form approved by the Minister setting out as of the end of the fiscal year the information required by the return. 1992, c. 18, s. 22 (1); 1997, c. 19, s. 11 (1); 1997, c. 43, Sched. C, s. 23 (1); 2004, c. 16, s. 1 (2). Enlargement of time (2) The Minister may, in his or her discretion, enlarge the time for filing a return under this section. 1992, c. 18, s. 22 (2); 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 1997, c. 19, s. 11 (1) - 10/10/1997; 1997, c. 43, Sched. C, s. 23 (1) - 7/05/1997 2004, c. 16, s. 1 (2) - 1/01/2004

• 22.
• 23Returns required by Minister

  23 The Minister may at any time by notice require an investment corporation or a corporation or partnership in which the investment corporation has invested to file within the time specified in the notice a return upon any subject connected with the affairs of the investment corporation and, in the opinion of the Minister, relevant to the administration or enforcement of this Act. 1992, c. 18, s. 23; 1997, c. 43, Sched. C, s. 23 (1); 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. C, s. 23 (1) - 7/05/1997 2004, c. 16, s. 1 (2) - 1/01/2004

• 23.
• 24Tax credit

  24 (1) The Minister may allow a tax credit under the Income Tax Act, the Corporations Tax Act or the Taxation Act, 2007 or an investment credit with respect to equity capital invested by eligible investors in Class A shares issued by an investment corporation. 1992, c. 18, s. 24 (1); 1997, c. 43, Sched. C, ss. 13 (1), 23 (1); 2004, c. 16, s. 1 (2); 2008, c. 19, Sched. V, s. 2 (9). Exception (1.1) Subsection (1) does not apply in respect of an investment corporation that is an Ontario commercialization investment fund corporation. 2004, c. 31, Sched. 7, s. 12. Refusal of tax credit (2) Subject to section 31, if the Minister is of the opinion that the investment corporation or its officers, directors or shareholders are conducting their business and affairs in a manner that is contrary to the spirit and intent of this Act or for the purpose of enabling a person to obtain a tax credit or in…

• 24.
• 24.1Small business investment credit, labour sponsored investment fund

  24.1 (1) A labour sponsored investment fund corporation may set aside funds after June 30, 1997 and before January 1, 2001 for the purpose of making an investment in a community small business investment fund corporation and may make the investment after registration of the community small business investment fund corporation under Part III.1. 1997, c. 43, Sched. C, s. 14; 1999, c. 9, s. 62 (1); 2004, c. 16, s. 1 (2). Investment deadlines (2) The following deadlines apply for investing funds set aside under subsection (1): 1. Funds set aside before May 5, 1998 must be invested in a community small business investment fund corporation not later than December 31, 1998. 2. Funds set aside after May 4, 1998 and before January 1, 1999 must be invested in a community small business investment fund corporation not later than December 31, 1999. 3. Funds set aside after December 31, 1998 and befo…

• 25Tax credits and incentives

  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 t…

• 25.
• PART IV ASSETS, CREDITS AND ADMINISTRATION
• [s43]
• 25.0.1Research investment incentive

  25.0.1 (1) An eligible investor may apply for a research investment incentive if the investor, or a qualifying trust for the eligible investor, purchases Class A shares issued by a research oriented investment fund after 2000 and before March 2, 2001. 2000, c. 42, s. 8; 2004, c. 16, s. 1 (2). Application by eligible investor (2) An application for a research investment incentive shall be made to the Minister and shall be in a form approved by the Minister. 2000, c. 42, s. 8; 2004, c. 16, s. 1 (2). Same, by corporation (3) The Minister may authorize a labour sponsored investment fund corporation to apply on behalf of its shareholders for research investment incentives and may impose conditions with respect to the authorization. 2000, c. 42, s. 8; 2004, c. 16, s. 1 (2). Payment of incentive (4) Subject to subsection (5), the Minister shall pay the research investment incentive to the eligi…

• 25.1Certificate of compliance

  25.1 (1) On or before January 31, each labour sponsored investment fund corporation shall give the Minister a certificate setting out the status of the corporation’s compliance with the investment requirements of this Act during the previous calendar year. 1999, c. 9, s. 64 (1); 2004, c. 16, s. 1 (2). Same (1.1) The certificate must be in a form approved by the Minister. 1999, c. 9, s. 64 (1); 2004, c. 16, s. 1 (2). Proof of compliance (2) At the request of the Minister, a labour sponsored investment fund corporation shall give the Minister information and documents sufficient to allow the Minister to determine whether the corporation is complying with this Act. 1999, c. 9, s. 64 (1); 2004, c. 16, s. 1 (2). Same (2.1) The information referred to in subsection (2) must be given to the Minister in a form approved by the Minister. 1999, c. 9, s. 64 (1); 2004, c. 16, s. 1 (2). Failure to del…

• 26Revocation of registration of corporation

  26 (1) Subject to section 31, the Minister may revoke the registration of an investment corporation if, (a) the investment corporation is registered under Part III and fails to maintain the required level of eligible investments; (b) the investment corporation fails to meet the requirements imposed by its articles; (b.1) the investment corporation fails to comply with section 14.1; (c) Repealed: 2011, c. 9, Sched. 7, s. 5 (2). (d) the investment corporation fails to comply with or contravenes this Act or the regulations; (e) the Minister is of the opinion that the investment corporation, its officers, directors or shareholders, or the employee organization, community sponsor or sponsor connected with it, are conducting their business or affairs in a manner that is contrary to the spirit and intent of this Act or for the purpose of enabling a person to obtain a tax credit or investment cr…

• 26.
• 27Payment of tax credits, special cases

  27 (1) Repealed: 2011, c. 9, Sched. 7, s. 6 (1). Repayment of tax credits (2) A labour sponsored investment fund corporation whose registration is revoked by the Minister shall immediately pay to the Minister an amount of money equal to the lesser of, (a) the sum of, (i) 15 per cent of the equity capital received by the corporation in respect of all Class A shares of the corporation, (A) that were then outstanding less than eight years immediately preceding the date of revocation, surrender of registration, winding-up or dissolution, and (B) that were issued on or before March 1, 2010, (ii) 10 per cent of the equity capital received by the corporation in respect of all Class A shares of the corporation, (A) that were then outstanding less than eight years immediately preceding the date of revocation, surrender of registration, winding-up or dissolution, and (B) that were issued after Mar…

• 27.
• 27.1Notice of business combination

  27.1 (1) A labour sponsored investment fund corporation that has issued Class A shares shall notify the Minister in writing if it proposes to, (a) amalgamate with another corporation; (b) enter into an arrangement for the purchase of substantially all of the assets of another labour sponsored investment fund corporation; or (c) enter into an arrangement for the sale to another labour sponsored investment fund corporation of substantially all of its assets. 2004, c. 31, Sched. 7, s. 17 (1). Same (2) The notice must be given at least 30 days before the proposed amalgamation, purchase or sale and must be accompanied by such information and documents as the Minister may request. 2004, c. 31, Sched. 7, s. 17 (1). Effect of amalgamation (3) The following rules apply for the purposes of this Act on an amalgamation of a labour sponsored investment fund corporation with another corporation: 1. Th…

• 27.2Notice of dissolution, etc.

  27.2 (1) A labour sponsored investment fund corporation that has issued Class A shares shall notify the Minister in writing if it proposes to dissolve or wind up. 1999, c. 9, s. 67; 2004, c. 16, s. 1 (2). Same (2) The notice must be given at least 30 days before the proposed dissolution or wind-up and it must be accompanied by such information and documents as the Minister may request. 1999, c. 9, s. 67; 2004, c. 16, s. 1 (2). Public notice deemed to be notice to the Minister (3) If a labour sponsored investment fund corporation publicly announces that it proposes to dissolve or wind up, the announcement shall be deemed to be notice given to the Minister in writing on the day the announcement is made that the corporation proposes to dissolve or wind up and the corporation shall provide to the Minister such information and documents as the Minister may request. 2006, c. 9, Sched. C, s. 14…

• [s49]

  where, “A” is the amount of equity capital received by the labour sponsored investment fund corporation on the issue of Class A shares that were issued within the 24 months immediately before that day and are still outstanding on that day, “B” is the total amount of equity capital received by the labour sponsored investment fund corporation on the issue of Class A shares that are still outstanding on that day, and “C” is the amount of equity capital received by the labour sponsored investment fund corporation on the issue of Class A shares that, as of that day, have been outstanding for at least eight years. 2006, c. 9, Sched. C, s. 14. Same (7) For the purposes of subsection (6), the references to Class A shares shall exclude any Class A shares that were issued within the 24 months immediately before that day by reason of an arrangement for the purchase of substantially all of the asset…

• 28.
• 28Investment level tax

  28 (1) Repealed: 2011, c. 9, Sched. 7, s. 7. Rebate (2) Upon receipt of an application from an investment corporation that has paid a tax under subsection (1) in respect of a fiscal year, the Minister may rebate the tax without interest to the corporation if, (a) the application is received within three years after the end of the fiscal year in respect of which the tax was imposed; and (b) the Minister is satisfied that no later than the end of the second fiscal year ending after the fiscal year in respect of which the tax was imposed the investment corporation maintained throughout a full fiscal year and continues to maintain the level of eligible investments required by this Act to be maintained by the corporation. 1992, c. 18, s. 28 (2); 1997, c. 43, Sched. C, s. 23 (1); 2004, c. 16, s. 1 (2). Investment level tax, labour sponsored investment fund corporation (3) A labour sponsored in…

• 28.1Investment level tax, shareholder in community small business investment corporation

  28.1 (1) Subject to subsection (1.1), a shareholder in a community small business investment fund corporation that does not meet the level of eligible investments required by section 18.7 to be held by the corporation at the end of a particular year shall immediately pay to the Minister a tax for the year equal to the amount determined using the formula, T = [(P × A) – B] × C/D

• 29.
• [s52]

  where, “T” is the tax payable by the shareholder under this subsection; “P” is, (a) 15 per cent if the shareholder is a labour sponsored investment fund corporation, (b) 30 per cent if the shareholder is a qualifying financial institution or 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, or (c) 7.5 per cent if the shareholder is a qualifying individual or qualifying corporation; “A” is the amount by which, (a) the amount of the community small business investment fund corporation’s equity capital received on the issue of its Class A shares that is required by this Act to be invested in eligible investments at the end of the year, exceeds, (b) the total of all amounts, each of which is the cost to the corporati…

• 30.
• 28.2Disposition of eligible investment, repayment of grant

  28.2 (1) An Ontario commercialization investment fund that disposes of an eligible investment in respect of which a grant under section 18.16 was obtained shall pay to the Minister not later than the 31st day after the date of disposition an amount of money equal to 30 per cent of the lesser of, (a) the original cost of the investment to the fund; and (b) the fair market value of the investment at the time of the disposition. 2004, c. 31, Sched. 7, s. 18. Exception (2) Subsection (1) does not apply if the fund disposes of the eligible investment more than 365 days after the day on which it acquired the eligible investment. 2004, c. 31, Sched. 7, s. 18. Limit on grant recapture (3) The amount of money that an Ontario commercialization investment fund shall pay to the Minister under subsection (1) in respect of the disposition of an eligible investment shall not exceed the total of all Ont…

• 31.
• 29Tax payable

  29 (1) An amount payable under this Act to the Minister or the Crown by an investment corporation or any other corporation shall be deemed to be a tax imposed on the corporation under Part II of the Corporations Tax Act or Part III of the Taxation Act, 2007, payable on the date the liability arises, for the purposes of collection and enforcement under that Act. 1992, c. 18, s. 29 (1); 1997, c. 43, Sched. C, s. 23 (1); 2004, c. 16, s. 1 (2); 2008, c. 19, Sched. V, s. 2 (23). Corporations Tax Act applies (2) For the purposes of subsection (1), sections 98 to 108 of the Corporations Tax Act apply and for the purpose, (a) “corporation” means person; and (b) “tax” means an amount payable under this Act to the Minister or the Crown in right of Ontario. 1992, c. 18, s. 29 (2); 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. C, s. 23 (1) - 7/05/1997 2004,…

• 32.
• 30Notice of demand

  30 (1) If an amount is payable to the Minister or the Crown or is deemed to be so payable under this Act, the Minister may, by notice of demand in writing to the person by whom the payment is owing or claimed to be owing, demand payment immediately or in such number of days as are specified in the demand, and, if the payment is not made as demanded, the Minister may recover and collect the amount by any of the remedies or procedures provided for in this Act. 1992, c. 18, s. 30 (1); 2004, c. 16, s. 1 (2). Effect (2) Even if an objection or other proceeding under section 31 has been commenced or may be commenced, every amount demanded under subsection (1) remains payable and recoverable until the demand therefor is revoked in writing by the Minister. 1992, c. 18, s. 30 (2); 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 2004, c. 16, s. 1 (2) - 1/01/2004

• 33.
• 31Notice of proposal by Minister

  31 (1) The Minister shall serve notice of a proposal by the Minister, (a) to refuse to register a corporation under this Act; (b) to revoke the registration of an investment corporation; (c) Repealed: 1999, c. 9, s. 70. (d) to refuse to make a rebate under section 28; (e) to refuse to issue a tax credit certificate or allow an investment credit under this Act; (f) to make an order that a particular investment is not an eligible investment; (g) to impose a penalty under subsection 18 (13); (h) to order a labour sponsored investment fund corporation to cease issuing tax credit certificates; or (i) to refuse to pay a grant under section 18.16. 1992, c. 18, s. 31 (1); 1997, c. 43, Sched. C, ss. 19, 23 (1); 1999, c. 9, s. 70; 2004, c. 16, s. 1 (2); 2004, c. 31, Sched. 7, s. 19 (1). Service of notice of proposal (2) The Minister shall serve the notice under subsection (1) upon the corporation …

• 34.
• 32Audit and inspection

  32 (1) For any purpose related to the administration or enforcement of this Act or the regulations, a person authorized by the Minister may, at all reasonable times, enter any premises or place where a business is carried on or property is kept or anything is done in connection with an investment corporation or an eligible business, or books and records of an investment corporation or an eligible business are or should be kept and, (a) audit or examine the books and records and any account, voucher, letter, telegram, or other document that relates or may relate to the registration, operations, expenditures or investments of an investment corporation or an eligible business; (b) examine any property, process or matter, an examination of which may assist in the determination of any question related to the registration, operations, expenditures or investments of an investment corporation or…

• 35.
• 33Requirement to keep books and records

  33 (1) Every investment corporation and every eligible business shall keep records and books of account at its permanent establishment in Ontario, or at such other place as is designated by the Minister, in such form and containing such information as will enable the Minister to verify that the investment corporation or eligible business has complied with this Act and the regulations. 1992, c. 18, s. 33 (1); 1997, c. 43, Sched. C, s. 23 (1); 2004, c. 16, s. 1 (2). Order to keep records and books of account (2) The Minister may require an investment corporation or eligible business that has failed to prepare and maintain adequate records and books of account for the purposes of this Act to prepare and maintain such records and books of account as the Minister specifies. 1992, c. 18, s. 33 (2); 1997, c. 43, Sched. C, s. 23 (1); 2004, c. 16, s. 1 (2). Compliance with order (3) The investmen…

• 36.
• 34Offence

  34 (1) Every person is guilty of an offence who, (a) makes, or assists in making a statement in any document required by or for the purposes of this Act or the regulations that, at the time and in light of the circumstances under which it was made, is false or misleading in respect of any material fact, or that omits to state any material fact the omission of which makes the statement false or misleading; (b) makes, or assists in making false or misleading entries in the records or books of account of an investment corporation or an eligible business; (c) knowingly fails to record material particulars in the records or books of account of an investment corporation or an eligible business; (d) fails to comply with an order, decision, direction, requirement or demand made under this Act or the regulations; or (e) contravenes this Act or the regulations. 1992, c. 18, s. 34 (1); 1997, c. 43,…

• 37.
• 37., 38.
• 35Application to court by Minister

  35 (1) The Minister may apply to the Superior Court of Justice for an order against a person who fails to comply with or contravenes this Act or the regulations. 1992, c. 18, s. 35 (1); 2004, c. 16, s. 1 (2); 2006, c. 19, Sched. C, s. 1 (1). Nature of order (2) An order under subsection (1) may direct the person to comply with, or may restrain the person from contravening, one or more specific provisions of this Act or the regulations, or the court may make such further or other order as the court considers appropriate in the circumstances. 1992, c. 18, s. 35 (2); 2004, c. 16, s. 1 (2). Persons affected by order (3) An order under subsection (1) may be directed also to any one or more of, (a) the directors and senior officers of the person if the person is a corporation; (b) the partners, if the person is a partnership; (c) the members who comprise the person, if the person is an unincor…

• 38.
• 39., 40.
• 1994
• 36Repealed

  36 Repealed: 2011, c. 9, Sched. 7, s. 7. Section Amendments with date in force (d/m/y) 1994, c. 17, s. 92 - 6/05/1994 2004, c. 16, s. 1 (2) - 1/01/2004 2011, c. 9, Sched. 7, s. 7 - 12/05/2011

• 39.
• 2011
• 37., 38

  37., 38 Repealed: 1994, c. 17, s. 93. Section Amendments with date in force (d/m/y) 1994, c. 17, s. 93 - 6/05/1994

• 40.
• 39., 40

  39., 40 Repealed: 2011, c. 9, Sched. 7, s. 7. Section Amendments with date in force (d/m/y) 1994, c. 17, s. 94 (1) - 20/05/1993; 1994, c. 17, s. 94 (2) - 6/05/1994 2011, c. 9, Sched. 7, s. 7 - 12/05/2011

• 41.
• 41Delegation by Minister

  41 The Minister may delegate in writing any of the Minister’s duties or powers under this Act to a public servant employed under Part III of the Public Service of Ontario Act, 2006. 1992, c. 18, s. 41; 2004, c. 16, s. 1 (2); 2006, c. 35, Sched. C, s. 18. Section Amendments with date in force (d/m/y) 2004, c. 16, s. 1 (2) - 1/01/2004 2006, c. 35, Sched. C, s. 18 - 20/08/2007

• 42.
• 42No action against Commission, etc.

  42 (1) No action or other proceeding for damages shall be instituted against the Commission, the Director, any member, employee or agent of the Commission, or any person delegated to carry out any of the Minister’s duties or powers under this Act for any act done in good faith in the execution or intended execution of his or her duty or for any alleged neglect or default in the execution in good faith of his or her duty. 1992, c. 18, s. 42 (1); 2004, c. 16, s. 1 (2). Liability of Crown (2) Subsection (1) does not by reason of subsection 8 (3) of the Crown Liability and Proceedings Act, 2019 relieve the Crown of liability in respect of a tort committed by a person mentioned in subsection (1) to which it would otherwise be subject, and the Crown is liable under that Act for any such tort in a like manner as if subsection (1) had not been enacted. 1992, c. 18, s. 42 (2); 2004, c. 16, s. 1 (…

• 43.
• 43Immunity re compliance

  43 No person has any right or remedy and no proceeding lies or shall be brought against another person for an act or omission of such other person done or omitted in compliance with this Act, the regulations or a direction, decision, order, ruling or other requirement made or given under this Act or the regulations. 1992, c. 18, s. 43; 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 2004, c. 16, s. 1 (2) - 1/01/2004

• 44.
• 44Repealed

  44 Repealed: 2011, c. 9, Sched. 7, s. 7. Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. C, s. 20 - 7/05/1997 2002, c. 22, s. 29 - 9/12/2002 2004, c. 16, s. 1 (2) - 1/01/2004 2011, c. 9, Sched. 7, s. 7 - 12/05/2011

• 45.
• 45Regulations

  45 (1) The Lieutenant Governor in Council may make regulations, (a) Repealed: 1997, c. 19, s. 11 (2). (b) requiring any person to make information returns respecting any class of information required in assessing compliance with this Act; (c) defining any word or expression used in this Act that has not already been expressly defined in this Act; (d) prescribing conditions that a corporation must meet prior to registration; (e) prescribing the method of determining the amount of equity capital of an investment corporation; (f) prescribing the method of calculation to be used in determining the percentage of wages and salaries paid in Ontario for the purposes of determining whether an investment is an eligible investment or a business is an eligible business; (g), (h) Repealed: 2011, c. 9, Sched. 7, s. 7. (i) prescribing any rate of interest that is to be prescribed or the method by which…

• 45.1Forms, etc.

  45.1 (1) The Minister may approve the use of forms for any purpose of this Act and the forms may provide for such information to be furnished as the Minister may require. 1997, c. 19, s. 11 (3); 2004, c. 16, s. 1 (2). Fees (2) The Minister may establish and charge fees for anything that the Minister or the Ministry is required or authorized to do under this Act. 1997, c. 19, s. 11 (3); 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 1997, c. 19, s. 11 (3) - 7/10/1997 2004, c. 16, s. 1 (2) - 1/01/2004

• 46.
• [s70]
• 46Money

  46 The money required for the purposes of this Act shall, until the 31st day of March, 1992 and subject to the approval of the Treasury Board, be paid out of the Consolidated Revenue Fund and thereafter shall be paid out of the money appropriated therefor by the Legislature. 1992, c. 18, s. 46; 2004, c. 16, s. 1 (2). Section Amendments with date in force (d/m/y) 2004, c. 16, s. 1 (2) - 1/01/2004 Part V (ss. 47-54) Repealed: 1997, c. 43, Sched. C, s. 22. Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. C, s. 22 - 7/05/1997 Part VI (ss. 55, 56) Repealed: 2002, c. 22, s. 30. Section Amendments with date in force (d/m/y) 2002, c. 22, s. 30 - 9/12/2002 Part VII (ss. 57-59) Repealed: 2002, c. 22, s. 31. Section Amendments with date in force (d/m/y) 2002, c. 22, s. 31 - 9/12/2002 ______________

• [s71]
• [s72]