In the 2013 federal budget, the government announced that it would phase out the LSVCC tax credit. The credit will remain at 15% for taxation years that end before 2015 and will be reduced to 10% for the 2015 taxation year and 5% for the 2016 taxation year. The credit will be eliminated for 2017 and subsequent taxation years. New federal LSVCC registrations will end, as well as the prescription of new provincially registered LSVCCs in the Income Tax Act. An LSVCC will not be federally registered if the application for registration is received on or after March 21, 2013.
Finance is asking for public input on potential changes to rules related to investment requirements, wind-ups, redemptions and other rules to be considered in preparing draft legislation to phase out the LSVCC tax credit.
Finance states that the draft legislation will be released for public comment at a later date.
For more information, contact your KPMG adviser.
Information is current to May 28, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500