REGINA, July 10, 2017 /CNW/ - On June 30, 2017, the provincial government of Saskatchewan proclaimed The Labour-sponsored Venture Capital Corporations Amendment Act, 2017, S.S. 2017, c 15 (the "Amendments"), to be in force. The Amendments amend The Labour-sponsored Venture Capital Corporations Act, S.S. 1986, c L-0.2 (the "Act"), such that the maximum allowable tax credit for each taxation year after 2017 is equal to the lesser of 17.5% or $875.
Also on June 30, 2017, The Labour-sponsored Venture Capital Corporations Act Regulations, Sask Reg 327/2017, came into force. Beginning with the 2018 tax year, the yearly aggregate fund cap will be lowered from $80 million per year to $70 million per year. Also beginning with the 2018 tax year, the maximum dollar amount of shares that can be issued by SaskWorks Venture Fund Inc. in any 12 month period ending March 31 will be $35 million, down from $40 million. Further, the maximum amount of money that may be forgone by tax credit will be $12,450,000 for the 2018 tax year and subsequent years.
Currently, investors are entitled to a Saskatchewan tax credit of 20% of the investor's net cost of the purchase of subscriber shares to a maximum of $1,000.00 (which is reached on an investment of $5,000.00).
In April 2017, the Saskatchewan provincial government introduced The Labour-sponsored Venture Capital Corporation Amendment Act, 2017, S.S. 2017, c 15 (the "Amendments"). The Amendments were proclaimed in force on June 30, 2017
SaskWorks Venture Fund is a Saskatchewan-based retail mutual fund that invests in small- and medium sized private businesses. Established in 2001, SaskWorks has more than 28,000 shareholders and over $452 million in assets under management.
SOURCE SaskWorks Venture Fund Inc.
For further information: Eric Clark, Investor Relations, SaskWorks Venture Fund, (306) 791-2113, [email protected]