CU Tax Debate: Beyond U.S. Borders
Most Canadian credit union executives can't remember a time when they didn't have to pay a nominal tax on income. But in the near future, the 40-year-old credit union tax, like most taxes, will increase.
Only 30% of credit union systems are fully or partially taxed, with rates ranging from a low of 10% to a whopping 40% paid on non-cooperative transaction earnings like fees or commissions in Brazil.
Many of the taxed credit unions tend to be part of smaller systems in developing countries. In addition to Canada, the other developed systems being taxed include Poland and Australia, the later of which has shouldered 20 years of paying tax on net income as well as other taxes, Edwards said.