Ontario seeks to extend investor rights, seniors’ tax credits

(November 23, 2004) The Ontario government has introduced legislation to allow secondary market investors to sue companies for disclosing false or misleading information. The bill would extend the same rights to such investors as those participating in an IPO.

“Thanks to the Canada Pension Plan, RRSPs, other pension plans and personal investments, just about every person in Ontario has a stake in our capital markets,” said Management Board chair Gerry Phillips. “Implementing civil liability for investors in the secondary market, where over 90 per cent of shares are bought and sold, is the right thing to do for investors in Ontario.”

The move follows a recommendation made by the Ontario legislature’s Standing Committee on Finance and Economic Affairs’ Report on the Five-Year Review of the Securities Act, which was tabled October 18, 2004.

The move is part of a bill introduced on Monday to enact several initiatives proposed in the last provincial budget.

“Our budget laid out a comprehensive four-year plan to encourage economic growth, restore the province to financial health, invest in education and improve health care,” said finance minister Greg Sorbara. “This bill contains initiatives that will continue to strengthen Ontario’s economy, while beginning to modernize government and find savings through the elimination or replacement of nine tax incentives.”

While cutting some tax rebates, the bill aims to eliminate the corporate capital tax by 2012. The plan is for more than 13,000 medium-sized corporations to stop paying capital tax by 2008, with the tax rate being reduced in subsequent years until reaching zero in 2012.

Today, Queen’s Park also tabled a bill extending $85 million in tax credits to seniors with low and moderate incomes.

“The action we are proposing would put more money into the hands of seniors,” said John Gerretsen, minister responsible for seniors. “It is yet another important piece of our plan to help seniors live safely, with dignity, and as independently as possible, with the supports they need.”

The proposal would increase the basic property tax credit for seniors from $125 to $625, effective for the 2004 and subsequent taxation years. The maximum amount for the credits would increase from $1,000 to $1,125.

Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com