PRINT THIS PAGE Tax in Canada29/05/2001. Source: Canadian Venture Capital Association.
Capital gains tax can have a serious impact on investment returns and subsequently affects where institutions invest their capital. The Canadian Venture Capital Association believes that budget proposals concerning capital gains, outlined in February 2000, do not go far enough to foster a competitive business environment. For Canadian venture capital to grow and expand, Canada must have a tax system that compares favourably with competitors and that encourages foreign investment.
This submission to the Canadian Department of Finance argues that the department should do more to bring the capital gains tax system in line with the British model. Unless changes are made in certain key areas, it warns that Canada will fall behind its overseas competitors. This response to the proposals provides a good overview of tax considerations for private equity investors in Canada. Sections six and seven are of particular interest.
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For further information on the activities of the CVCA please contact
Lauren Linton, director of marketing Tel: +1 (416) 487-4299
© Canadian Venture Capital Association 2001
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