Canada: Passive investment tax measures | KPMG | GLOBAL

Canada: Passive investment tax measures, “angel investor” incentives being considered

Canada: Passive investment tax measures

Officials with the Department of Finance have said that passive investment tax changes would protect venture “angel investing.”

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The current plans are to retain incentives that encourage venture capital and “angel investors” to invest in innovative companies, as the proposed private company tax changes proceed.

Finance officials have recognized that firms that raise money from venture capital investors often raise more than they immediately need, and therefore must invest these funds passively before the funds are used in the business itself. The government is considering recommendations received from taxpayers before finalizing any planned changes to the proposed tax measures on passive investments.

 

Read an October 2017 report prepared by the KPMG member firm in Canada

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