In 2003, the government of Manitoba introduced a new tax credit
called the Community Enterprise Development Tax Credit (the
"CED Credit"), which was designed to encourage Manitoba
resident investors, and certain eligible corporations with a
permanent establishment in Manitoba, to invest in community-based
enterprise development projects. Manitoba announced certain
enhancements to the CED Credit in its 2014 Budget and again in its
2015 Budget, which was tabled on April 30, 2015.
In order for a community-based enterprise to be considered an
"eligible investment" for purposes of the CED Credit, the
particular enterprise must be either a "community
enterprise" or a "community development investment fund
corporation" (as defined in the regulations that govern the
CED Credit (the "CED Regulations")) and the investment
must be shares.
The criteria to meet in order to be considered either a
"community enterprise" or a "community development
investment fund corporation" are quite lengthy and are set out
in detail in the CED Regulations. The Government of Manitoba has indicated generally that enterprises with net
assets of $10,000, gross assets of $25 million, and no more than
200 employees will qualify. Notably, organizations that are
ineligible for the CED Credit include professional practices as
well as enterprises involved in primary industries, mineral
exploration, recreational/seasonal activities, or commercial
If an investor qualifies for the CED Credit and the enterprise
is also approved, upon submitting a successful application to the
Manitoba Department of Agriculture, Food and Rural Development, the
investor will receive a 45% income tax credit on a maximum annual
investment of $60,000 – this translates to a maximum of
$27,000 in tax credits. In its 2014 Budget, Manitoba announced that
the 45% tax credit rate would be effective for eligible shares
issued after 2014 and that the CED Credit was extended to 2020.
In its 2015 Budget, Manitoba announced that for 2014 and
subsequent taxation years, it intends to permit eligible
investments to include shares purchased during the first 60 days of
the following year. A positive result of this measure is that an
eligible investor who purchases shares after December 31, 2015 and
no later than March 1, 2016 may claim the CED Credit in either
year, provided that all of the criteria are met in the
The latest form to apply for the CED Credit can be found here.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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