VICTORIA
– By helping companies registered with the provincial government’s venture
capital programs to provide tax credit certificates quickly and efficiently,
the Province is taking another step to encourage innovation and reward
investors in B.C.’s dynamic small business sector, Technology, Trade and
Economic Development Minister Ida Chong announced today.
“Venture
capital keeps British Columbia’s vibrant technology companies competitive and
strong,” said Chong. “The Province has already streamlined its processes
to reduce the amount of time that clients registered in these programs spend
filling out and completing forms. Now the ministry has introduced a web-based
system that will simplify and speed up the process of applying for and
distributing the tax credit certificates, making it easier for eligible
investors to claim their 30 per cent tax credit.”
The electronic Tax Credit
Application (eTCA) is a system that allows eligible companies to submit
investment data to the provincial government on-line and retrieve tax credit
certificates quickly for their investors.
“The introduction of this
new on-line system will not only reduce the administrative burden for
technology companies, but also accelerate the process and shorten the time to
access money, which is often critical,” said Pascal Spothelfer, president of
the BC Technology Industry Association.
Before eTCA, companies sent their
investor information to the British Columbia Ministry of Technology, Trade and
Economic Development’s Investment Capital Branch in Victoria. Ministry staff entered the
information into a computer system, then printed and mailed the tax credit
certificates to individual investors. Now companies can submit data on their
capital investment intake to government and get back tax credit verification
electronically right away for their investors, saving time and processing
costs.
The Province provides a 30 per cent
tax credit to British Columbia
residents when they purchase shares directly in a venture capital corporation
or eligible business corporation registered with the provincial government.
Eligible British Columbia businesses have enjoyed
steady success in raising venture capital: $18 million in 2004, $22 million in
2005, $43 million in 2006, $80 million in 2007 and an anticipated $83 million
for 2008. These investments help employ British Columbians and enable B.C.
companies to thrive and grow, providing critically important seed capital for
emerging small businesses across the province.
Venture capital companies and
eligible business corporations must be registered with the provincial
government in order to utilize eTCA to serve their investors.
More information on the investment
capital programs is available on the Ministry of Technology, Trade and Economic
Development’s website at www.gov.bc.ca/ecdev
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