WATERLOO REGION, ON, March 5 /CNW/ - The Waterloo Region tech cluster, home to more than 700 technology companies, welcomes a change to federal tax law that makes foreign investment less complicated. The federal government's revisions to Section 116 of the tax code announced Thursday are being hailed as a progressive step and welcome incentive for increased investment in Canada.
"The government has just broken down a barrier that has stood in the way of attracting capital from US investors and from all around the world," said Iain Klugman, President and CEO of Communitech, the organization that represents Waterloo Region tech companies. "This move streamlines the investment process, eliminates unnecessary paperwork, and puts Canada on an even footing to compete in the global economy."
Waterloo Region tech company leaders expressed support for the change to federal tax legislation. Dave Bullock, CEO of LiveHive Systems, said, "Very simply, amending Section 116 removes one of the biggest barriers to growing successful companies in Canada - access to international investment capital. Without this amendment, Canadian companies are playing from a constant disadvantage, without the easy access to outside investment that our competitors already have. This is a change that will give promising Canadian companies the opportunity to get to that next level."
Carol Leaman, CEO of PostRank, called the change "long overdue" and an enlightened move on the part of the government. "Early stage companies across this country are breathing a sigh of relief, not because it's going to result in an immediate and massive flood of investment across the border - although that would be nice - but because it allows excellent Canadian companies and their ideas to at least get to the starting gate," Leaman said.
Dave Caputo, President and CEO of Sandvine, said that raising foreign investment is a difficult and time-consuming process at the best of times.
"But by amending Section 116 we will be removing an administrative burden to non-resident shareholders, removing unnecessary barriers and improving companies' ability to be appropriately capitalized," said Caputo.
Klugman said Waterloo Region's tech industry is praising government for listening to the challenges faced by companies and working collaboratively with industry to solve them. The elimination of 'red tape' surrounding the foreign investment process will encourage Canadian start-ups to fuel their businesses with available capital.
"Access to capital is a huge issue for companies," said Klugman, "This is an important step in overcoming that challenge, and it will make a real difference to companies in Waterloo Region and right across Canada."
Communitech www.communitech.ca is the hub for the commercialization of innovation in Waterloo Region, creating economic prosperity by removing barriers to the creation and growth of tech companies.
SOURCE Communitech Ltd.
For further information: For further information: Media Contact: Shelley Grandy, Communitech Sr. PR Advisor, (905) 866-2656, or firstname.lastname@example.org