The document discusses the need for an investor tax credit program in Alberta to encourage private equity investment in small, local businesses. It notes that Alberta currently lacks incentives for private investment in startups and small businesses, which hinders their growth. The summary cites evidence from successful tax credit programs in British Columbia and Nova Scotia that generated billions in new investment with tax credits totaling only hundreds of millions. It recommends the government of Alberta establish a 30% non-refundable tax credit for equity investment in small and medium Alberta businesses to spur business and economic growth in the province.
No Strings Attached – 10% Cash Refund Benefit to all Companies
Most Canadian provinces have their own R&D tax credit schemes that augment the federal SR&ED benefit. Despite its booming economy, Alberta has been one of the few Canadian provinces – along with tiny Prince Edward Island – that didn't.
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The Tax Act provides significant tax benefits for investors reinvest unrealized capital gains.
CPABC Budget Recommendations to the BC GovernmentCPABC
CPAs are on the front lines of business in this province, and they see firsthand what issues are affecting investment and the economy. Based on our members’ input from CPABC’s annual Business Outlook Survey, and economic analysis from the BC Check-Up, CPABC’s recommendations focused on four policy areas that would improve BC's business productivity.
Read more at www.bccpa.ca.
“A lot of people go through life thinking that they don't have any control, that life is just happening to them. But that's not true.” - Jason Silva
“Another way to lose control is to ignore something when you should address it.” - Jim Evans
No Strings Attached – 10% Cash Refund Benefit to all Companies
Most Canadian provinces have their own R&D tax credit schemes that augment the federal SR&ED benefit. Despite its booming economy, Alberta has been one of the few Canadian provinces – along with tiny Prince Edward Island – that didn't.
Golden Door Partners: An Intro to Opportunity ZonesVijar Kohli
An Introduction to Opportunity Zones. The Investing in Opportunity Tax Act was enacted to incentivize long-term incentives in urban communities.
The Tax Act provides significant tax benefits for investors reinvest unrealized capital gains.
CPABC Budget Recommendations to the BC GovernmentCPABC
CPAs are on the front lines of business in this province, and they see firsthand what issues are affecting investment and the economy. Based on our members’ input from CPABC’s annual Business Outlook Survey, and economic analysis from the BC Check-Up, CPABC’s recommendations focused on four policy areas that would improve BC's business productivity.
Read more at www.bccpa.ca.
“A lot of people go through life thinking that they don't have any control, that life is just happening to them. But that's not true.” - Jason Silva
“Another way to lose control is to ignore something when you should address it.” - Jim Evans
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The presentation reflects the significant role of the public sector in financing for the new Sustainable Development Goals (SDGs). There is an introduction to the 17 goals and the proposed ways to generate the trillions required for this procedure, one of which is the engagement of the public sector. Through the idea of domestic resource mobilization (DRM) for the generation of resources, countries should focus on achieving high tax-GDP ratios and the creation of fiscal space. This will lead to government revenue and opportunities for more effective public spending for meeting the SDG goals.
Noted national author, attorney and entrepreneur/social entrepreneur and L3C guru discusses key issues to keep in mind when deciding whether to be a for-profit or a not-for-profit organization. He also discusses the lasted events in the growing L3C movement for the social sector.
The Social Enterprise Alliance North Texas Chapter convened entrepreneurs, nonprofit executives and social enterprise practitioners in June to learn about new legal and tax structures for social enterprise organizations. New hybrid organizations are adopting emerging social enterprise models, employing innovative strategies, and creating business alliances to drive positive social change. This interactive presentation helped nonprofit leaders and social entrepreneurs understand a myriad of legal, tax, and governance challenges in the Fourth Sector and learn ways to overcome them by using business efficiencies to achieve nonprofit goals. Marc Lane, a national-recognized expert on social enterprise law, led the discussion and offered his practical advice and answered questions about these issues and others:
The L3C business model and how social enterprises are already benefiting
Relieving legal tension between financial and social objectives
Understanding social enterprise legal issues
· Reducing the risks and financial burden of earned-income social ventures
· Leveraging foundations' "program-related investments" to attract private-sector capital for earned-income ventures
Converting nonprofit funders into social venture capitalists
Mobilising domestic resources for sustainable development in cameroon is the ...SHILLIE PETER (DBA Fellow)
Considering that financing development from domestic resources can be more cost effective to a nation, there is urgent need to strengthen and mobilize the domestic resources of the Country. A more guaranteed source of domestic resources for financing development is through taxation.
On January 28, Truth in Accounting released its fourth annual Financial State of the Cities report, a comprehensive analysis of the fiscal health of the nation's 75 most populous cities based on fiscal year 2018 comprehensive annual financial reports.
Cities have become more transparent over the last few years, thanks to the Generally Accepted Accounting Principles set by the Governmental Accounting Standards Board, which now require governments to disclose pension and other post-employment (OPEB) benefits on their balance sheets. If these benefits have not been fully funded, they are considered liabilities, or debt, because they represent money owed to government employees in their retirement.
This year, the study found that 63 cities do not have enough money to pay all of their bills, and in total, the cities have racked up $323 billion in municipal debt. The study ranks the cities according to their Taxpayer Burden or Taxpayer Surplus™, which is each taxpayer's share of city bills after available assets have been tapped.
Presented at the Regional Consultation on the Development of New Education and Training Policy and Strategy at CDB in St. Michael, Barbados in July 2016
Unlocking Public Resources for Development: Meeting the SDGsNasiaGavrielidou
The presentation reflects the significant role of the public sector in financing for the new Sustainable Development Goals (SDGs). There is an introduction to the 17 goals and the proposed ways to generate the trillions required for this procedure, one of which is the engagement of the public sector. Through the idea of domestic resource mobilization (DRM) for the generation of resources, countries should focus on achieving high tax-GDP ratios and the creation of fiscal space. This will lead to government revenue and opportunities for more effective public spending for meeting the SDG goals.
Noted national author, attorney and entrepreneur/social entrepreneur and L3C guru discusses key issues to keep in mind when deciding whether to be a for-profit or a not-for-profit organization. He also discusses the lasted events in the growing L3C movement for the social sector.
The Social Enterprise Alliance North Texas Chapter convened entrepreneurs, nonprofit executives and social enterprise practitioners in June to learn about new legal and tax structures for social enterprise organizations. New hybrid organizations are adopting emerging social enterprise models, employing innovative strategies, and creating business alliances to drive positive social change. This interactive presentation helped nonprofit leaders and social entrepreneurs understand a myriad of legal, tax, and governance challenges in the Fourth Sector and learn ways to overcome them by using business efficiencies to achieve nonprofit goals. Marc Lane, a national-recognized expert on social enterprise law, led the discussion and offered his practical advice and answered questions about these issues and others:
The L3C business model and how social enterprises are already benefiting
Relieving legal tension between financial and social objectives
Understanding social enterprise legal issues
· Reducing the risks and financial burden of earned-income social ventures
· Leveraging foundations' "program-related investments" to attract private-sector capital for earned-income ventures
Converting nonprofit funders into social venture capitalists
Mobilising domestic resources for sustainable development in cameroon is the ...SHILLIE PETER (DBA Fellow)
Considering that financing development from domestic resources can be more cost effective to a nation, there is urgent need to strengthen and mobilize the domestic resources of the Country. A more guaranteed source of domestic resources for financing development is through taxation.
On January 28, Truth in Accounting released its fourth annual Financial State of the Cities report, a comprehensive analysis of the fiscal health of the nation's 75 most populous cities based on fiscal year 2018 comprehensive annual financial reports.
Cities have become more transparent over the last few years, thanks to the Generally Accepted Accounting Principles set by the Governmental Accounting Standards Board, which now require governments to disclose pension and other post-employment (OPEB) benefits on their balance sheets. If these benefits have not been fully funded, they are considered liabilities, or debt, because they represent money owed to government employees in their retirement.
This year, the study found that 63 cities do not have enough money to pay all of their bills, and in total, the cities have racked up $323 billion in municipal debt. The study ranks the cities according to their Taxpayer Burden or Taxpayer Surplus™, which is each taxpayer's share of city bills after available assets have been tapped.
Presented at the Regional Consultation on the Development of New Education and Training Policy and Strategy at CDB in St. Michael, Barbados in July 2016
Consiste en un espacio virtual que permite el intercambio de mucha información a grandes velocidad y con un costo sumamente accesible es por eyo que se han desarrollado infinidad de aplicaciones
For more classes visit
www.snaptutorial.com
ACC 548 Assignment Balancing the Budget
What are the relevant facts?
Who is affected?
Who are the major parties in this case?
What are the ethical conflicts in this case?
Liberal Party of Canada Economic Council - Report Analysis paul young cpa, cga
This presentation will analyse the Liberal Party of Canada's Economic Council recommendation on how to grow the economy.
The presentation will look at labor, trade, investment, innovation, productivity, infrastructure and skills development
Unlocking financial opportunities for the attainment of sustainable Developme...Tunde Ekundayo
“Unlocking Financial Opportunities for the Attainment of Sustainable Development in Africa” explored the prevailing experience of Africa about the need for financial resources, as well as the obstacles and modalities requires to successfully mobilise financial resources for the development of infrastructure in Africa towards the attainment of SDGs by 2030. The piece is designed to give a quick run-down of the essentials of infrastructural development as well as financial mobilisation for policymakers, development practitioners and other stakeholders.
This document brings together a set
of latest data points and publicly
available information relevant for
Financial Services. We are very
excited to share this content and
believe that readers will benefit from
this periodic publication immensely.
The Australia FinTech Report 2021 report is an in-depth analysis of the rapidly evolving FinTech sector in Australia. The report takes a close look at the dynamic FinTech startups in the continent to understand the factors driving innovation. Read Australia FinTech Report 2021 to discover what makes Australia’s FinTech landscape unique—CDR and Open Banking, M&A, the FinTech segments powered by a flourishing ecosystem, growth in the FinTech ecosystem, and much more!
Mobilising domestic resources for sustainable development in cameroon is the ...SHILLIE PETER (DBA Fellow)
Considering that financing development from domestic resources can be more cost effective to a nation, there is urgent need to strengthen and mobilize the domestic resources of the Country. A more guaranteed source of domestic resources for financing development is through taxation.
Opening speech by Mr Ramathan Ggoobi, Permanent Secretary/Secretary to the Treasury at the Conference on Reshaping the tax system to support the Financial Sector Development Strategy (FSDS)
Kampala, Uganda, 14th–15th December 2022
The two-day conference was convened by Uganda's Ministry of Finance, Planning and Economic Development, and co-hosted by ICTD's DIGITAX Research Programme and TaxDev.
Funding Good Outcomes- Using social investment to support payment by results.PDF
Alberta Investor Tax Credit
1. Alberta Investor Tax Credit
Solving the Venture Capital Draught
The inaccessibility of early-stage capital investment is a major impediment to the growth and
sustainability of Alberta’s small businesses. Often lacking the resources and administrative capacity to
raise capital via debt financing, these businesses rely heavily on equity investments made by angel
investors and venture capital firms. Despite this need, Alberta is currently one of the only provinces in
Canada without an income tax credit for those who invest in local small businesses.1
The province lacks
an incentive structure aimed specifically at encouraging private sector agents to purchase equity in
local—capital starved—enterprises. Without policies that foster small business growth, the province’s
productivity, level of innovation, and overall competitiveness stand to suffer.
In their 2013 Report on Competitiveness, the Alberta Economic Development Authority identified key
competitiveness indicators, and compared the province’s performance against other jurisdictions—both
within Canada and abroad. The report found that one of the greatest obstacles to the provinces’ overall
competitiveness was a lack of access to venture capital. In the report, Alberta was ranked near last in
terms of both venture capital investment relative to GDP, and the number of venture capital deals per
100,000 people. Venture capital is vital in the development of innovative companies within the province.
This inability is intrinsically linked to Alberta’s other low scores in non-resource export growth,
employment in high-tech manufacturing, and employment in knowledge-intensive services.2
Currently, provincial programs have focused mainly on the demand-side of the business development
equation. Through the Alberta Innovation Voucher program and support in R&D funding, there has been
an attempt to spur the creation of new businesses and start-ups. These programs are important for
creating investment ready businesses,3
but more must be done in encouraging private sector investment
to help these ventures move forward. Early stage equity investment is a necessary component in
allowing small businesses to grow and become sustainable enterprises.
Alberta Enterprise Corporation (AEC) is one body which provides public funding to venture capital firms,
which is then invested in the larger community. Yet, creating a sustainable ecosystem for small business
1
http://acca.coop/wp-content/uploads/2014/02/Coop-Development-White-Paper-May-5-20111.pdf
2
http://aeda.alberta.ca/media/11184/final-abcomp-2013-may-22-2014-re-26.pdf
3
https://www.cvca.ca/files/Downloads/Government_Involvement_in_the_VC_Industry_Intl_Comparisons_May_2010.pdf
2. investment in Alberta is not possible without greater private sector involvement. The AEC’s fund-of-
funds model does an important job of providing liquidity into the marketplace, but mechanisms need to
be enacted to keep private capital within Alberta as well.
New businesses backed in large part by public venture capital tend to underperform compared to those
funded by private investors, both in terms of patent production and the likelihood of a successful market
exit via an IPO or third party acquisition.4
Also, venture capital firms one are only component of a
healthy venture capital marketplace, broader incentives needs to be created for all sources of
investment.
Econometric studies out of the University of British Columbia and Shanghai Advance Institute of Finance
have shown that the best investment mix is of majority private capital, with some early stage public
funding. Mechanisms for public funding are already in place. Therefore, the most effective policies going
forward are ones which take steps to increase the flow of private capital into these firms. One which
allows creates an incentive, yet allows the free-market to determine the most efficient allocation.
Small Business Venture Capital Tax Credit
In order to increase capital investment in small businesses, and contribute to the overall stability and
growth of the Albertan economy, the provincial government should incentivize investors through an
income tax credit. Considering Alberta is the only jurisdiction without this type of program, it stands as
an effective tool that the province should take advantage of. Other jurisdictions have successfully used
an income tax credit to spur investment in small businesses. With high pickup rates, low costs, and
general efficiency, they illustrate how such a program may be structured and potential outcomes.
Research out of the University of British Columbia, evaluated their province’s program. It found that
between 2001 and 2008, $256 million worth of tax credits helped to attract $2.3 billion of equity
investments, creating over 4,000 jobs. They also estimated that the average company participating in the
program raised a total of $2.14M of equity. In the same period, every $1 given as a tax credit generated
$2 in provincial tax revenue, making it a net benefit gain for the province.5 6
A 2010 survey of B.C investors found that 73.8 percent of respondents said they would invest less
without the tax credit and 11.9% said they would not invest at all. If this program did not exist 41.3%
said they would seek to invest more in the US, 23.8% more in Canada outside B.C.7
In Nova Scotia, a similar program has been incredibly popular, and there are strong advocates for its
expansion. Between 2002 and 2011, $115.7 million was invested using the program, in exchange for
$35.7 million in tax credits. It hit a historical peak in 2006, right before the world financial recession, with
$5million in tax credits being leverages into over $16million in investment. The success of this program,
has led some to suggest an Atlantic Canada-wide initiative to attract capital investment.8
4
http://strategy.sauder.ubc.ca/hellmann/pdfs/BranderDuHellmannOct04.pdf
5
http://www.mikevolker.com/Hellmann_Venture_Capital_Report_2010.pdf
6
http://www.initiativespg.com/wp-content/uploads/2014/06/VentureCapitalPresentation.pdf
7
strategy.sauder.ubc.ca/hellmann/pdfs/Angels%20in%20BC%20Preliminary%20Survey%20Report%20October%202010.pdf
8
http://entrevestor.com/images/uploads/Entrevestor_September_2012.pdf
3. As has been shown in British Columbia, it is possible to create a very successful program without a loss
to tax revenue and large administrative costs. This creates a more efficient outcome than direct
government participation in investment decisions, and keeps both the investment of capital and the
subsequent rewards within the province.
Increased venture capital investment has compounding benefits for the economy. Early stage
investment spurs more investment from other sources, it creates a more mature venture capital eco-
system, and if an investor finds success, they are more likely to invest in the future. There is also a
“legacy effect” in which successful businesses make generous contributions back into the overall
business community. This has been observed across tech-hubs both in Canada and the United States.
Alberta is fortunate to have large pools of capital, yet a system must be put in place to encourage the
flow of this capital back into the province’s small businesses. This tax credit is a hands-off approach
which puts the onus on investors to make the final decision on risk and efficiency, but incentivises them
to keep their money within Alberta and put it toward high-growth businesses. A program such as this is
an important step towards protecting the long-term health of the Albertan economy, while ensuring that
the province remains competitive for both investors and small businesses owners.
Recommendations
In consultation with our Tax and Economic Affairs Committee, the Calgary Chamber of Commerce
recommends that the Government of Alberta:
1. Establish an investor tax credit which incentivizes equity investment in small and medium size
businesses in Alberta
a. Provide a non-refundable tax credit equal to 30% of investment made through the
program against provincial taxes
b. Allow the credit to be moved forward or back 2-4 years in order to smooth the fiscal
impact of the program
c. Place a cap on the amount of tax credit available each year
d. Establish a yearly maximum on how much a company may raise through the program in
order to ensure investment is not being pooled in a small group of firms and that the
program is only attracting early-stage investment
e. Require that the investor not have held a major stake in the venture prior to investment
in order to ensure the program is only attracting new investment
f. Set a threshold for what constitutes an Albertan small-business based on the number of
employees and the percent of wages paid to the Alberta residents, but consider a lower
wage threshold for firms who primarily engage in exports
g. Allow common shares, preferred shares, and convertible debentures to be eligible, in
order to properly reflect current venture capital practices
h. Eligible investors include individuals, companies, and pooled funds who pay taxes in
Alberta
i. Emulate B.C’s online registration system to minimize administrative costs, regulatory
burden and wait times
4. 2. Consider leveraging an investor tax-credit incentive to diversify Alberta’s economy
3. Reevaluate disclosure and prospectus requirements in order lower the administrative burden on
small businesses seeking venture capital investment