MONTRÉAL, March 23, 2016 /CNW Telbec/ - Fondaction CSN is thrilled with the full reinstatement of the 15% labour-fund tax credit as of January 1, 2016, and commends the government for keeping its word and respecting the commitment made by the Prime Minister to labour funds.
To facilitate access to venture capital for small and medium-sized businesses and to help the middle class save, Budget 2016 proposes to restore the federal labour-sponsored venture capital corporations (LSVCC) tax credit to 15 per cent for share purchases of provincially registered LSVCCs for the 2016 and subsequent taxation years.*
"This is very welcome news for Fondaction CSN and its shareholders. By proceeding in this manner, this Government is acknowledging the potential and importance of labour-sponsored funds, which is only fitting," explains Léopold Beaulieu, President and CEO of Fondaction CSN.
Labour funds were created to provide middle-class workers with an attractive retirement savings vehicle and help SMEs grow their businesses. These funds have a positive impact on employment and public finances.
Starting today, and for all share purchases made since January 1, 2016, taxpayers who purchase Fondaction shares can benefit from a 35% tax credit, i.e. 20% from the Québec government and 15% from the federal government. These tax credits may be combined with the RRSP deduction, making the retirement savings offered by Fondaction available to everyone. These rates are effective for the 2016 tax year.
Fondaction CSN: A leader in sustainable development
Fondaction is a general fund that has always made sure companies take sustainable development into account. It has been producing sustainable development reports for the past 10 years and was the first financial institution in North America to comply with the highest standards of the most recent guidelines of the Global Reporting Initiative (GRI), the global gold standard for sustainable development.
About Fondaction CSN
Fondaction manages almost $1.4 billion in assets from retirement savings collected from over 128,000 shareholders. Through its investments or commitments, either directly or by way of partner or specialized funds, Fondaction supports the development of more than 950 SMEs, including many social economy businesses that make an important contribution to Québec's economic and social development.
* The passage in italics is quoted from the Federal Budget 2016.
For further information: Isabelle Monette, Media Relations Manager, Fondaction CSN, 514 525-5127, 514 503-4169, [email protected]