カナダ移民申請の過去記事・1

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Back number: 014C
(June 26, 2010)
投資ビザカテゴリーの新基準確定 - Updated on June 26th, 2010:

基準の概要:
必要投資金額 80 万カナダドル。
申請時に保有が必要な純資産 160 万カナダドル相当 (= 他通貨、株、不動産等を含む)。
連邦投資ビザ * ケベック州投資ビザにも適用されます。

- Resources of Information -


Regulations Amending the Immigration and Refugee Protection Regulations
Statutory authority

Immigration and Refugee Protection Act
Sponsoring department
Department of Citizenship and Immigration

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)
Executive summary

Issue: The Canadian Immigrant Investor Program (IIP) supports the Immigration and Refugee Protection Act (IRPA) objective “to support the development of a strong and prosperous Canadian economy, in which the benefits of immigration are shared across all regions of Canada” by attracting experienced business people and their economic resources to Canada. Candidates for the IIP must demonstrate business experience, a Personal Net Worth (PNW) of $800,000 and make an “investment” of $400,000 in the Canadian economy in the form of a five-year, zero-interest loan to the Government of Canada. These funds are distributed to participating provinces and territories (PTs) to fund economic development and job creation initiatives in their region.

Thresholds for PNW and investment amounts, specified in the Immigration and Refugee Protection Regulations (the Regulations), have remained unchanged since 1999 and are outdated. The relative impact of a $400,000 “investment” on economic development in 2010 compared to a decade earlier, along with changing client profiles, international competitiveness and increased PT participation in the program, now underscore the need for updated PNW and investment amounts that would reflect today’s global wealth.

Description: The Government of Canada proposes that amendments be made to the definition of “investor” and “investment” in section 88 of the Regulations that would increase the investment amount from $400,000 to $800,000 and the PNW amount from $800,000 to $1.6M for Investor class applicants.

Cost-benefit statement: This proposal is intended to expand the economic impacts of the program by increasing the availability of low-cost investment capital to PTs while enhancing Canada’s ability to attract individuals who can undertake significant economic activity after arriving in Canada. Following the elimination of the current inventory the gross increase to the Canadian economy would be approximately $600 million per year and would result in a net economic benefit to Canada of $59,229 per investment. A full cost-benefit analysis report will be available upon request in early August.

Business and consumer impacts: The implementation of this proposal would allow for an increase of approximately $89 million per year in the amount of investment capital available to participating PTs to support job creation initiatives in their regions, once the current inventory would be eliminated.

Domestic and international coordination and cooperation: PTs can opt to join the IIP but must guarantee repayment of the $400,000 investment at the end of five years. Under the terms of the Canada-Quebec Accord, the province of Quebec (QC) operates a separate IIP (the QIIP) with all investment capital flowing directly to QC. The Government of Canada and Quebec agree to harmonize their respective standards and practices in the implementation of their programs.

Performance measurement and evaluation: Through the process of general program evaluation requirements these changes will be monitored and evaluated. In addition a full Performance Measurement and Evaluation Plan and Cost Benefit Analysis will be available upon request by early August.
Issue

The Immigrant Investor program (IIP) was designed to recruit experienced business people and their resources to Canada. Currently, Investors must make a direct investment in the Canadian economy in the form of a $400,000, five-year interest-free loan. Citizenship and Immigration Canada (CIC) receives the investment funds and distributes them to participating provinces and territories (PTs) who must guarantee the return of the money and use it to generate economic development and job creation activities. Since 1999, Investors have also been required to meet a Personal Net Worth threshold (PNW) of $800,000 which is used to identify individuals who have additional resources to undertake further economic activity upon their arrival in Canada, and who possess business networks and valuable linkages to international markets that can be transferred to Canada.

The current $400,000 investment regime resulted in $487M being allocated to PTs in 2009, and there is currently almost $2B of five-year, revolving federal IIP capital being managed by PTs. The program is intended to provide PTs with funds for initiatives that otherwise would not occur and are outside general government programming. Examples of PT use of IIP capital to date include venture capital investments in clean technology and life sciences projects, public sector infrastructure investments (e.g. expansion of broadband internet access, construction of post-secondary institution facilities), loans to Canadian businesses for expansion and support for newcomer integration into the labour market.

The investment and PNW amounts are stipulated in the Regulations and these amounts have not changed since 1999. However, while the global marketplace has changed dramatically over the past decade, the aforementioned thresholds have not kept pace.

Despite recent global economic instability, the pool of potential immigrant Investors is rapidly expanding as demonstrated by CapGemini and Merrill Lynch’s 2009 World Wealth Report. (see footnote 1) The report projects that wealth in the Asia-Pacific region (the source region for 80% of Investors arriving in Canada in 2009) will continue to grow at a rapid pace and that the population of “High Net Worth Individuals” (HNWIs) will surpass that of North America’s within the next few years.

Canada competes with a number of other countries for high net worth immigrants; however, the investment required under the Canadian IIP is significantly lower in comparison to international programs. Most other countries with similar programs now require an investment closer to CAD$1M. In addition to costing less, the Canadian IIP offers significant incentives over other countries including the United States, the United Kingdom, Australia and New Zealand, the most notable of which is permanent residence status upon application approval. Thus the Canadian IIP has become underpriced on the international market and as a consequence, application intake has almost tripled since 2007 and application inventories have increased significantly. Consequently, an applicant applying today can anticipate a wait of approximately five years for a final decision which is not only longer than the approximately 23–35-month wait times for applicants who applied in 2007, but more importantly, longer than processing times for other international programs. CIC has increased the number of cases it processes annually from 1 000 to 2 000 in 2007 and again in 2010, to 3 000 cases per year. However, simply increasing processing of Investors to accommodate higher intake levels is not an option. Immigration is comprised of a complex series of programs which require a careful balancing of resources across the processing network to effectively meet Government of Canada commitments outlined in the Annual Report to Parliament on Immigration. Given current funding levels, increasing investor processing would require a shift in resources from other programs, negatively affecting these commitments.

Similarly, a net worth of $800,000 in 1999 was considered substantial enough to attract applicants with the financial wherewithal and expertise to make a significant positive economic contribution to Canada. Due to increasing global wealth, in 2010, partially fuelled by increasing real property values worldwide, a net worth of $800,000 is now within easy reach of a modest property owner in a large city, who may not have other transferable resources (e.g. liquid assets, business networks, and transferable business expertise) as originally envisioned. At the same time, PT participation in the program has grown. In 1999, only two PTs — Ontario and Prince Edward Island — participated. There are now seven participating PTs and others have expressed interest. Since IIP funds are distributed to PTs on the basis of an allocation formula, the entry of each new jurisdiction decreases the amount of capital available to other participants.

As the economy moves out of recession, the availability of low-cost capital to stimulate economic growth and support job creation is in high demand, particularly at a regional level. The IIP provides a much-needed infusion of low-cost capital to six provinces and one territory, across Canada. In addition to providing permanent rather than temporary residency upon application approval, the Canadian program has the lowest entry cost by far on the international market. Current PNW levels do not enable the program to focus on individuals with sustainable wealth and international business connections who are readily able to contribute economically to Canada. The proposal would increase the amount of incoming capital to PTs while enabling the program to focus on individuals who would bring additional investment resources to Canada. It is expected that the increased investment and PNW thresholds, combined with administrative measures such as Ministerial Instructions, would act to balance program demand against current processing resources.

Objectives

Increasing the investment amount required under the IIP would increase the flow of low-cost capital into PTs, supporting the IRPA objectives and complementing the goals articulated in Advantage Canada by “making it easier and less costly for Canadian entrepreneurs and businesses to access money from investors across Canada and the world.”

Raising the PNW amount would focus the program on high net worth applicants who are better able to engage in wealth-generating economic activity in Canada, by virtue of the amount of assets at their disposal and their links to international business networks.

Updating both amounts would produce a better match between the applicants and the program objectives. It would also move towards realigning the level of applications received with available processing resources. In the longer term, this is expected to lead to decreased processing times and a higher level of client service, which would support Canada’s ability to continue attracting high net worth investor immigrants.

Description

This regulatory initiative proposes to increase the PNW threshold from $800,000 to $1.6M and the required investment from $400,000 to $800,000 by adjusting the definition of “investor” and “investment” in section 88 of the Regulations — where these amounts are stipulated.

The Canada-Quebec Accord requires the governments of Canada and Quebec to consult each other on changes to their PNW and investment amounts, under the IIP and QIIP. Under the Accord both parties agree to harmonize their respective standards and practices in the implementation of their programs.

Regulatory and non-regulatory options considered

There are no alternatives to a regulatory change as PNW and investment amounts are explicitly stated in the Regulations.

Ministerial Instructions have also been published in the Canada Gazette, Part I, that would permit the Department to process a blend of applications received before and after publication of the proposed amendments. This action would allow the benefits of the higher investment amounts to be immediately available.

In addition, as described in the accompanying Ministerial Instructions, CIC would impose a short administrative pause following pre-publication of this proposal in the Canada Gazette, Part I, in order to mitigate the growing surge in applications.

These administrative directives would allow Canada to realize immediately the benefit of the increased investment amounts upon publication of the Regulations, and to address the impact of a potential surge of applications at the $400,000-investment level in the period between pre-publication and final publication.

Benefits and costs

Since 1999, 75 594 persons have arrived in Canada under the IIP. Investor applicants bring, on average, 2.65 dependents (spouses and children) with them to Canada. Immigrant investors settle mainly in British Columbia, Ontario and Quebec, but their investment capital is made available to all regions of Canada. This proposal is not intended to impact the number of investors who would arrive in Canada annually, but it would substantially increase the amount of capital injected into the Canadian economy annually by this group of immigrants.

Because the return of investment principal is guaranteed by provincial treasuries, PT investment strategies vary based on the amount of risk they are willing to assume. Some treasuries purchase bonds that guarantee the repayment of the $400,000 at the end of the period, and use immediate revenues available to support economic activity. Others are more aggressive and provide loans to businesses or to venture capital initiatives.

This proposal is intended ultimately to double the gross amount of IIP investment coming into Canada annually, therefore doubling program benefits without increasing program resources. However, existing inventories of applications to be processed under the current program criteria (i.e. a $400K investment) must be cleared before the full benefits of the proposed change would be realized. This is expected to occur within five to six years of implementation of the proposed changes, after existing inventories of applications filed prior to the proposed change have been assessed. Until then, annual expected benefits are calculated assuming a 2:1 case processing ratio of inventory applications to new applications received after the proposed regulatory change. No benefits are anticipated in the first year, as case processing requirements mean that no new applications filed after the proposed regulatory change would be finalized; therefore, no investments would be made by this cohort within the first year.

This 2:1 assumed case-processing ratio is based on current inventory levels, anticipated application intake, and previous experience with similar operational adjustments to Federal Skilled Worker applications. This ratio would allow for some of the benefits of the proposed regulatory change to be realized in the shorter term without significantly disadvantaging either group. Applicants in the existing inventory would be invited to reapply under the proposed requirements, should they feel that doing so would improve the timeframes for processing of their applications. The 2:1 ratio would be closely monitored by CIC and may require adjustments to ensure that anticipated benefits are realized.

It is assumed that CIC will continue to intake approximately 1 500 investments annually, as there will be no adjustments made to processing resources. Applying a 2:1 ratio results in an intake of 1 000 investments of $400K and 500 investments of $800K in each of the second to fifth years. The gross incremental impact of the proposed change is therefore calculated as $200M annually (500 investments ´ $400,000 incremental increase). An 8% discount rate is applied to arrive at the figures in the accounting statement below.

Due to the requirement to repay this investment capital after five years, this regulatory proposal also estimates an incremental net economic benefit to Canada of $59,229 per investment. At 500 investments annually, the increased benefit to Canada would be $29,6M annually. Once CIC is in a position to process solely applications made under the proposed new requirements this would increase to approximately $89M. This is expected to occur within five to six years of implementing the proposed changes, after existing inventories of applications filed prior to the proposed change have been assessed. Until then, annual expected benefits are calculated assuming a 2:1 case-processing ratio of inventory applications to new applications received after the proposed regulatory change.

Participating PTs have established sole-purpose funds to administer program investment, report to CIC quarterly on investment initiatives, and provide annual audited financial statements to account for this flow of funds. It is therefore expected that costs to PTs to administer increased levels of capital would be minimal, as PTs already have the necessary program infrastructure in place. The benefit of the net investment would be shared, according to the IIP allocation formula in subsection 88(2) of the Regulations — which distributes one half of the investment equally and one half according to relative PT gross domestic product (GDP) — among any and all regions wishing to participate. As additional PTs join the IIP, the amount of capital available to participating jurisdictions will decrease. Increases to the investment amount would offset any decreases in available investment capital should other jurisdictions decide to join the IIP.

Cost-benefit statement

These figures are based on CIC assumptions and are subject to change as further analysis, including a formal cost-benefit analysis, is undertaken. A full cost-benefit analysis report will be available upon request in early August.

A. Quantified impacts $ in millions
participation 2010–11
2011–12
2012–13
2013–14
2014–15
Ongoing per year

Benefit: Increase in gross investment capital available
PTs participating in the federal IIP
$0
$171M
$159M
$147M
$136M
$600M* (following elimination of backlog)

*Not discounted

Benefit: Increase in net investment capital available
PTs participating in the federal IIP
$0
$25M
$23M
$22M
$20M
$89M* (following elimination of backlog)

*Not discounted

B. Quantified impacts in non-$ — e.g. Risk assessment

CIC now has an inventory of approximately 16 000 cases and is committed to processing 3 000 IIP cases per year. Intake in 2009 was approximately 8 400 cases, or 5 400 above our annual target. The proposed change is intended to better align application intake with CIC processing capacity to curb inventory growth and meet our processing target.

C. Qualitative impacts

Positive Impacts
Government of Canada
In the long-term, a decrease in incoming applications would result in decreasing costs of inventory management and storage, and balanced intake and output would maximize departmental resources.

Incremental benefit to Consolidated Revenue Fund as a result of holding higher levels of IIP investment dollars.

Provinces and Territories
Increased investment by PTs in economic development and job creation. The benefits of additional IIP capital would be passed on to the general public where PTs target public infrastructure investments through their IIP fund.

Province of Quebec
Quebec would be a beneficiary of increased investment through the Quebec IIP. Further analysis will be reflected in the full CBA.

Facilitators (Banks)
Opportunities to connect to higher net worth clients.

Canadians
Increased secondary economic activity through recruitment of higher net worth Investors to Canada.

Stimulus provided through investor consumption (e.g. homes, cars, furniture), taxation, philanthropy, etc.

Canadians are the ultimate beneficiaries of job creation and economic development undertaken through PT IIP fund activities.

Negative Impacts
Government of Canada
Administrative cost: Storage of full applications and additional inventory management costs resulting from processing inventory and new applications together.

Provinces
Minimal incremental costs may be incurred by PTs to manage higher volumes of IIP funds.

Increased program delivery cost as a result of increased IIP investment dollars (e.g. increased resources for financial/debt management and oversight).


Rationale

Since the Canadian program was redesigned in 1999, other countries have introduced Investor programs with much higher investment requirements making the cost of entry into the Canadian program the lowest on the international market. As a result, the cost-benefit analysis supports the assertion that the IIP has become underpriced on the international market and therefore program benefits are not being maximized at current resource levels.

While both the U.S. and Australian programs offer lower investment thresholds for their regional investment programs than those proposed for the Canadian program, neither provides permanent residence immediately nor do they allow applicants to finance their investments, which has the effect of significantly reducing the cost of the investment for the applicant. In addition, the IIP guarantees the return of the original amount to the Investor while there is no such guarantee under the U.S. program. The proposed investment amount positions the Canadian program closer to the international competition without overpricing it.

Canada has historically been the industry leader in attracting high net worth immigrant Investors. Recently, investment programs offered by other countries with higher investment thresholds have begun to attract larger numbers of applicants. For example, the number of approved visas for the U.S. Investor program, which requires an investment of US$500K or US$1M (depending on the region of investment), nearly tripled between 2008 and 2009, from 1 443 to 4 218 visas. (see footnote 2) While the terms of the U.S. and Australian programs differ significantly from the Canadian IIP, their ability to recruit Investor immigrants at a higher investment threshold supports the notion that the Canadian IIP investment thresholds can be revised upward. The increased popularity of the Canadian program alone — application levels have nearly tripled since 2007 — also indicates that the program is undervalued and there is room to increase the investment amount to further enhance the IIP’s economic benefits to Canada and manage intake.

Increasing demand for the IIP has resulted in growing inventories of applications and reflects the need to realign the PNW and investment amounts to internationally competitive levels. Demand for the IIP is not expected to decrease given current PNW and investment amount levels and the low cost of entry to the IIP compared to other international programs, and it is expected that inventories of applications and, consequently, wait times will continue to grow. An applicant applying today waits approximately five years for a final decision which is considerably longer than wait times under other international programs. In the long run, lengthy wait times will undermine the program’s competitiveness.

Increasing the PNW and investment to $1.6M and $800,000, respectively, would refocus the program on higher net worth individuals, and is expected to reduce application intake and slow inventory growth.

Consultation

The Canada-Quebec Accord requires that the Canadian and Quebec governments harmonize their respective standards and practices in the implementation of their programs. CIC has engaged with Quebec on the proposed changes, and the province supports the revision of the PNW and investment amounts upwards.

Consultations with stakeholders and partners commenced in 2007 and have been ongoing since that time.

The Canadian banks who act as program “facilitators” by providing financing, administer the money flows to CIC and from CIC on behalf of their clients, and market the program abroad indicate general support for changes to program criteria, though opinions vary regarding optimal thresholds.

PTs also support the proposed increases to the investment and PNW threshold amounts to $800,000 and $1.6M respectively, as it would increase availability of program investment capital to them.

The most recent consultations have taken place in late 2009 between facilitators and participating PTs concerning the issue of investment amounts. Ministerial correspondence requesting confirmation of the amounts was sent from Minister Kenney of CIC to Minister James in Quebec.

In 2010, between February and April, consultations on the proposed amounts have been ongoing between CIC and the facilitator advisory group, participating PTs, Quebec officials and respective ADMs.

Implementation, enforcement and service standards

The PNW and investment amounts would take effect when these proposed Regulations come into force.

As previously noted, CIC would introduce administrative measures via ministerial instructions to process a blend of applications received before and after publication. This action would allow the benefits of the higher investment amounts to be immediately available.

In addition, as described in the accompanying Ministerial Instructions, CIC would impose a short administrative pause following pre-publication of this proposal in the Canada Gazette, Part I, in order to mitigate the growing surge in applications. The administrative pause would come to an end pending the final approval and coming into force of this proposal. At the current intake rate, this surge could extend processing times to beyond acceptable levels that have been established in the Annual Report to Parliament on Immigration and diminish the level of benefits associated with this proposal.

Performance measurement and evaluation

The proposed changes would be monitored and evaluated according to regular program evaluation schedules, and ongoing consultations with stakeholders and partners will inform the policy development process, as will the program evaluation which is scheduled for 2011–2012.

Through the process of general program evaluation requirements, these changes will be monitored and evaluated. In addition, a full performance measurement and evaluation plan and cost-benefit analysis will be available upon request by early August.

Contact

H. S.
Director
Permanent Resident Policy and Programs
Citizenship and Immigration Canada
365 Laurier Avenue W, 8th Floor (JETS D878)
Ottawa, Ontario
K1A 1L1


PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to subsection 5(1) and section 14 of the Immigration and Refugee Protection Act (see footnote a), proposes to make the annexed Regulations Amending the Immigration and Refugee Protection Regulations.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Heidi Smith, Director, Permanent Resident Policy and Programs, Citizenship and Immigration Canada, 365 Laurier Avenue West, Jean Edmonds South Tower, 8th Floor, Ottawa, Ontario K1A 1L1 (tel.: 613-954-4214; fax: 613-954-0850; e-mail: Heidi.Smith@cic.gc.ca).

Ottawa, June 17, 2010

JURICA ČAPKUN
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE IMMIGRATION AND REFUGEE PROTECTION REGULATIONS

AMENDMENTS

1. (1) The portion of the definition “investment” in subsection 88(1) of the Immigration and Refugee Protection Regulations (see footnote 3) before paragraph (a) is replaced by the following:

“investment”
« placement »

“investment” means, in respect of an investor, a sum of $800,000 that

(2) Paragraph (b) of the definition “investor” in subsection 88(1) of the Regulations is replaced by the following:

(b) has a legally obtained net worth of at least $1,600,000; and

COMING INTO FORCE
2. These Regulations come into force on the day on which they are registered.

 
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