New Pet Food Manufacturing company Receives EBC Status from BC Gov't. -- The Pet Deli

Jan. 8, 2008 - PRLog -- The Pet Deli (www.thepetdeli.ca) is pleased to announce some very exciting news. Galbraith's Gourmet Pet Foods Inc. has received Eligible Business Corporation (EBC) Status under section 28.2 of the Small Business Venture Capital Act. The EBC status is a new investment option designed to promote capital investments in early stage companies and was established under the Equity Capital Program by the Ministry of Competition, Sciences and Enterprise in the Province of British Columbia, Canada. This program is ideal for investors that want to be actively involved in the growth of small business throughout BC, and offers companies the same benefits as a Venture Capital Corporation (VCC).

Investors may now receive a 30% tax credit for every dollar they invest in The Pet Deli, which entitles them to a 30% tax deduction off of their personal or corporate tax return. This gives the investor a great tax saving and a low cost investment stake in a dynamic new pet food manufacturing company with a high potential for excellent capital gains profits. Investors may claim up to $60,000 in EBC tax credits per year on a $200,000 maximum investment that can be carried back to a prior year if purchased within the first 60 days of the year, or carried forward for future years. Investments may be a little as $10,000.* If the investment is combined with self-directed RRSP contributions, investors' tax savings could range to an additional 22- 43.7% depending on individual tax brackets. The table below highlights the possible savings levels: Every potential investor’s situation is different or unique. The below chart is for example purposes only. Please consult with your accountant.

The Pet Deli Investment $10,000 $25,000 $100,000 $200,000 (Max)
EBC Tax Credit (30%) * $3,000 $7,500 $30,000 $60,000
Self-Directed RRSP (43.7%) ~ $4,370 $10,925 $43,700 $87,400
Total Tax Savings (73.7%) $7,370 $18,425 $73,700 $147,400
Net Investment Cost $2,630 $6,575 $26,300 $52,600

* - The EBC tax credit may be granted exclusive of or through a self-directed RRSP
~ - Federal & Provincial income tax brackets range from 22% to 43.7%

How a Pet Deli investor qualifies for the 30% EBC refundable Tax Credit.

If you are British Columbia resident or Corporation, we will assist you in completing the EBC Share Purchase Report with your cash payment, that can be made from regular accounts or your self-directed RRSP. The Pet Deli will issue the investor a common share allotment from our corporate legal representative. The Pet Deli will then complete the Tax Credit Application and forward it with the Share Purchase Report to BC Ministry of Small Business and Competition who will in turn, issue Tax Credit Certificates directly to the shareholder investor.

Claiming the Tax Credit.

A shareholder, either as an individual as referred to in section 2(1), or Corporation Section 2(2) of the Income Tax Act (BC), attaches the credit certificate to their income tax return T1 or T2 (Corp) and files it with the Canada Customs & Revenue Agency (CCRA) for the taxation year stated. The amount claimed is applied toward payment of all income tax amounts due to the CCRA with any excess refunded directly to the individual. **

Please Note: This is for people who are accredited investors as laid out in the BC Securities act.
* Investment in EBC Corporations must be minimum 5 year duration
** Corporate tax credits are non-refundable

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The Pet Deli is a manufacturer, distributor and retailer of Gourmet and Specialty Pet Food. The pet food will be sold in Grocery Stores, Pet Stores and small deli style retail locations. The product will be sold in the Frozen Food section of Grocery Chains and will be served "deli style" sold by weight and scooped into containers in the Retail Location. The stores will feature a wide selection of wholesome and nutritious meals and treats that are creative and colourful.

Website: www.thepetdeli.com

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