Most Canadian credit union executives can't remember atime when they didn't have to pay a nominal tax on income. But inthe near future, the 40-year-old credit union tax, like most taxes,is scheduled to increase.

The current combined federal/provincial income tax, whichmirrors Canada's small business deduction and includes anadditional deduction for other earnings not covered under smallbusiness, varies from 11% to 15% based on the province in which thecredit union operates.

Those rates are scheduled to increase by 4% according toprovisions in Canada's 2013 federal budget, passed on June 26,which calls for a five-year phase-out of what had been considered apreferential tax rate.

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