MONTRÉAL, May 24, 2018 /CNW Telbec/ - Québec investors have good reason to applaud the budget provisions announced in March 2018 as Capital régional et coopératif Desjardins (CRCD) will enable them to benefit from $59 million in tax savings in 2018, 2019 and 2020.
CRCD can offer an additional 10% tax credit over the next three years to certain shareholders without any requirement to make additional investments. The Québec government has authorized an annual amount of $100 million to CRCD to allow shareholders to defer for seven years the right to redeem their eligible shares, that is, shares held for at least seven years, in exchange for a 10% tax credit. CRCD can also issue $140 million in shares through its annual capital raising campaign with a 35% tax credit, making it possible for a greater number of taxpayers to invest in this popular financial product.
New 10% tax credit for an additional period of 7 years
This new provision concerns shareholders who have held shares for at least seven years without making any redemptions. By deferring the right to redeem their eligible shares for seven years, these shareholders will receive a provincial tax credit of 10% of the amounts carried forward, with no new investment. This deferral will take place by simply converting existing shares into a new class of shares.
Shareholders may convert their eligible shares up to a value of $15,000 annually, thereby benefiting from a tax credit of up to $1,500, with no other tax consequences upon conversion. If total demand for conversion exceeds the authorized amount of $100 million, CRCD will proceed as it has for subscriptions with a random selection process involving all the shareholders who indicated their interest between 9 a.m. on June 18, 2018 and 5 p.m. on September 24, 2018. All shareholders concerned will receive a communication by mail before the end of June requesting that those interested provide their consent by mail or online at www.desjardins.com/crcd.
CRCD's 2018 annual share issue
As in past years, a random selection process will be used for the 2018 share issue subscriptions if demand exceeds $140 million, allowing nearly 47,000 Québec taxpayers to invest in the growth of local SMEs. The maximum annual subscription per person remains at $3,000, which generates a provincial tax credit of up to $1,050.
Investors interested in the product will have to make a pre-subscription request between 9 a.m. on September 4, 2018 and 5 p.m. on September 24, 2018 using the secure web form available during this period at www.desjardins.com/crcd or via AccèsD. Investors are not required to be or to become a member of a Desjardins caisse to subscribe for CRCD shares. Investors selected at the end of the pre-subscription period will have until November 9, 2018 to complete their subscription.
The 2018 issue will see two major innovations. Firstly, current CRCD shareholders who are selected will be able to subscribe independently online via AccèsD, without having to make an appointment at a caisse. Anyone who is not an AccèsD user or an existing shareholder will need to make an appointment with a caisse advisor.
Lastly, to be sure not to miss the pre-subscription period, investors can sign up for an email alert starting on June 15, 2018 at www.desjardins.com/crcd.
About Capital régional et coopératif Desjardins
With more than 105,000 shareholders, Capital régional et coopératif Desjardins (CRCD) is a public company with $1,945 million in net assets. CRCD contributes to Québec economic development through several levers developed with its manager, Desjardins Capital. These levers, with CRCD as the driving force, form its entrepreneurial ecosystem designed to value and nurture the best of Québec entrepreneurship. Through its network, CRCD supports the growth of 450 businesses, cooperatives and funds in various industries spanning all Québec regions, helping to create and retain more than 67,000 jobs (http://www.capitalregional.com/en).
SOURCE Capital régional et coopératif Desjardins
For further information: For journalists only: Richard Lacasse, Spokesperson, Media Relations, Capital régional et coopératif Desjardins, 418 835-8444 or 1 866 835-8444, ext. 5563163, [email protected]; For investors, Shareholder Relations, 1 888 522-3222