Venture Capital Concerns Are Heard

On October 20, 2017, the Department of Finance ("Finance") responded to several concerns raised by the venture capital and angel investor sectors in respect of the proposed taxation of private corporation measures (see CBT's summary here). 

The Government recognized the important role played by venture capital and angel investor sectors in a developing economy and will continue to incentivize further investments in developing businesses.

Family and friends who invest in the early stages of a start-up company take on additional risk that may warrant a relatively high return under a reasonableness standard.  Finance repeated its commitment to simplify the proposed income sprinkling measures for family members who contribute to a family business.