Where do Immigrant Investor Funds Go In BC?

One of the questions that I am most frequently asked is “where does British Columbia’s money from the Immigrant Investor Program go?”  Indeed, at least two people today e-mailed me this question after they read an article in the China Daily about how $1.6-billion left China due to emigration under various investor scheme.

The answer can be found on the the B.C. Immigrant Investment Fund Ltd.’s (the “BC IIF”) website.  The BCIIF receives and manages British Columbia’s portion of funds under the Immigrant Investor Program.  Their 2011-2014 Service Plan can be found here.

According to the website and the 2011-2014 Service Plan, some of the money from the Immigrant Investor Program has been spent on the following projects:

  • Loaning $60-million to aid in the construction of the BCIT aerospace facility near the Vancouver International Airport;
  • Loaning $5-million to help facilitate the purchase of the University of Victoria Technology Enterprise Facility, which accommodates the Centre for Addictions Research B.C., the NEPTUNE Canada Research Project, and the Venus Research Project.
  • Loaning $13.9-million for the construction of a student residence at the University of the Fraser Valley.
  • Loaning $3.3-million for the construction of two residences at the Nicola Valley Institute of Technology.
  • Loaning $5.1-million for two condominium units at Simon Fraser University Foundation.
  • Loaning the Province of British Columbia $39-million for the Gateway Prince George Complex Care Project of the Northern Health Authority.
  • Loaning the Province of British Columbia $29-million for the replacement of the J. Lloyd Crowe Secondary School.
  • Loaning the Province of British Columbia $32-million for the renovation and replacement of Penticton Secondary School.
  • Loaning the Province of British Columbia $24-million for the replacement of the Burnaby Secondary school.
  • Loaning the Province of British Columbia $15-million for the renovation and replacement of Revelstoke Secondary School and the new Primary School.
  • Loaning the Province of British Columbia $13-million for the replacement of University Hill Secondary School.
  • Loaning the Province of British Columbia $12-million for the seismic upgrade of the Cariboo Hill Secondary School.
  • Loaning the Province of British Columbia $11-million for the seismic upgrade of the Ecole Jules Quesnel Elementary School.
  • Investing $66-million dollars total in the following 13 companies:
    • Angstrom Power Inc.
    • Boreal Genomics
    • Cooledge Lighting Inc.
    • Delta-Q Technologies
    • Endurance Wind Power
    • E-One Moli Energy
    • Indicee Inc.
    • LaCima Inc.
    • Light-Based Technologies
    • Mingleverse Laboratories Inc.
    • Partnerpedia Solutions Inc.
    • NGRAIN (Canada) Corporation
    • Ostara Nutrient Recovery Technologies Inc.

It should be noted that the interest collected on the above loans is extremely low.

The above list should dispel the occasionally held notion that the Immigrant Investor Program has done nothing for British Columbia.  However, whether it has contributed more or less than most people assume, or whether the above-list will satisfy people that the benefits of the program outweigh the negatives that some people associate the program with, I do not know.


MI-3 Introduces Caps to the Federal Investor Program

On July 1, 2011, the third set of Ministerial Instructions came into affect. Dubbed M-3, the changes introduced have certainly grabbed the attention of what one immigration lawyer calls the oligarchy of overseas consultancy firms that specialize exclusively in investor applications.

Under the changes, a maximum of 700 new federal Immigrant Investor applications will be considered for processing each year. Assuming that success rates remain constant, this means that around just over 600 applications will be accepted each year.

All applications are to be sent to the Centralized Intake Office in Sydney, Nova Scotia.

The cap began on July 1, 2011. It was full by July 5, 2011, as numerous overseas facilitators and consultants rushed applications. Given the speed with which the applications were filed, I cannot think of any way that an individual can apply to permanent residency under the Immigrant Investor Program without the assistance of an extremely skilled facilitator or representative.


Immigrant Investor Fined For Tax Evasion

On July 15, 2010, the Tax Court of Canada declared that S Korki, an Immigrant Investor from Iran, would have to pay gross negligence penalties for failure to fully disclose income.

In the 2002 and 2003 taxation years, Mr. Korki declared a net income of $19,100 and $22,312 respectively. After carrying out a Net Worth Analysis during an audit, the CRA reassessed this amount to $287,340 and $177,380.

Over the court of the whole affair, the Canada Revenue Agency pounced on inconsistencies in testimony, statements from officers and friends, obtained evidence of wire transfers, discovered undeclared offshore accounts, and real property sales.

They found that the applicant had not met the burden of showing that the reassessment was wrong. They further found that gross negligence penalties were appropriate. These penalties add 50% to the amount of tax owing.

The case stresses how important it is for immigrant investors to obtain proper tax advice prior to immigrating.


Live in Care Givers, PNP Acceptance Rates

According to CIC, during the past 12 months the approval rate for different application streams for permanent residence has been as follows:

Immigration Category Approval Rate

Economic

Quebec Skilled Workers

97%

Federal Skilled Workers (Pre-C-50)

57%

Federal Skilled Workers (Post C-50)

21%

Entrepreneurs

76%

Self Employed

45%

Investors

82%

Provincial Nominees

96%

Live-In-Caregivers

99%

Canadian Experience Class

85%

Family

Parents and Grandparents

91%

Spouses & Partners

83%

Dependent Children

80%

Family Class (Other)

70%

Humanitarian

Government Sponsored Refugees

76%

Private Sponsored Refugees

69%

Refugee Dependents

86%

H&C Applications

70%

FCH – Family Relations – H&C

90%