Thank you, Mr. Chairman. As you have noted, on behalf of Mr. Todd, I am introducing today Bill 14, An Act to Amend the Risk Capital Investment Tax Credits Act, and the Income Tax Act.
Mr. Chairman, this bill amends the Risk Capital Investment Tax Credits Act to allow the government to charge fees to companies registering under the act and to provide for the setting of those fees by regulations. This bill also amends the act to retroactively deem the act and the regulations made under the act to have come into force on the date the act was given assent, September 25, 1998.
In addition, this bill amends the Income Tax Act to give retroactive effect to a provision of that act respecting the investment tax credits established under the Risk Capital Investment Tax Credits Act. These changes correct two problems with the Risk Capital Investment Tax Credits Act which were not identified until the program's implementation.
Mr. Chairman, when the regulations were being drafted for the Risk Capital Investment Tax Credit Act, it was determined that the act inadvertently did not allow for fees to be charged for many of the services provided to companies registering under the act. This bill amends that act to allow for fees to be set by regulations for services provided under the act. When the program was introduced in the 1998-99 budget, it was announced that there would be fees to recover the cost of these services.
The original act was proclaimed on September 25, but the order bringing it into force was not signed until February 11, 1999. The details of the program administration had to be known prior to the act being brought into force. The amendment being introduced provides that the act came into force on September 25, in order to allow for tax credits for the 1998 tax year, as was originally intended, and announced in the 1998 budget. Thank you, Mr. Chairman.