TORONTO, May 6, 2013 /CNW/ - On March 21, 2013, the Minister of Finance (Canada) announced the phase out of the 15% federal Labour Sponsored Venture Capital Corporation ("LSVCC") tax credit. The federal LSVCC credit will remain 15% for the 2013 and 2014 taxation years, but will be reduced from 15% to 10% for the 2015 taxation year, and reduced to 5% for the 2016 taxation year, with its elimination in 2017 and for all subsequent taxation years.
The proposed changes to the federal LSVCC rules will therefore not affect the federal 15% tax credit for purchases of Class A Shares of the Fund completed during 2013 or 2014.
Return On Innovation Advisors Ltd. ("ROI"), as manager of Return On Innovation Fund Inc. (the "Fund"), anticipates that the phase out of the federal LSVCC tax credit will potentially affect the Fund's ability to raise capital in the future. ROI continues to be committed to professionally managing the Fund seeking to fulfil ROI's duty to act in the best interest of the Fund. ROI will continue to assess the impact of this announcement on the Fund, including the Fund's offering of Class A Shares.
ROI was established in 2002 and has built a full-service asset management platform that has the capacity to underwrite, finance, acquire and manage assets that fit the investment profile and mandate of its managed funds. On December 7, 2012, three closed-end investment funds managed by ROI were listed on the TSX: ROI Canadian High Income Mortgage Fund (TSX: RIH.UN), ROI Canadian Mortgage Income Fund (TSX: RIL.UN), and ROI Canadian Real Estate Fund (TSX: RIR.UN). As of March 31, 2013 ROI managed more than $1.3 billion in assets across 10 funds.
SOURCE ROI Capital