{"id":243450,"date":"2024-01-12T15:14:15","date_gmt":"2024-01-12T20:14:15","guid":{"rendered":"https:\/\/canada.coop\/?page_id=243450"},"modified":"2024-11-28T08:06:24","modified_gmt":"2024-11-28T13:06:24","slug":"tax-deferred-co-operative-share-program","status":"publish","type":"page","link":"https:\/\/canada.coop\/en\/tax-deferred-co-operative-share-program\/","title":{"rendered":"Ratifying the Tax-Deferred Co-operative Share Program as a Permanent Fiscal Measure"},"content":{"rendered":"

[et_pb_section fb_built=”1″ _builder_version=”4.16.1″ background_color=”#4B4B4D” background_image=”https:\/\/canada.coop\/wp-content\/uploads\/Lettre-oo-cmc.png” background_blend=”multiply” custom_padding=”40px|0px|40px|0px|true|false” animation_style=”fade” animation_duration=”1200ms” animation_delay=”100ms” global_colors_info=”{}”][et_pb_row _builder_version=”4.16.1″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”0px||0px||false|false” animation_style=”slide” animation_direction=”top” animation_intensity_slide=”3%” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16.1″ custom_padding=”0px||0px||true|false” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23.4″ text_font=”||||||||” header_font=”|700||on|||||dotted” header_text_align=”center” header_text_color=”#FFFFFF” header_font_size=”40px” header_line_height=”1.3em” background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_margin=”0px||0px||true|false” custom_padding=”9px||1px||false|false” animation_style=”fade” header_font_size_last_edited=”off|desktop” locked=”off” global_colors_info=”{}”]<\/p>\n

Ratifying the Tax-Deferred Co-operative Share Program as a Permanent Fiscal Measure<\/h1>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.17.0″ _module_preset=”default” background_image=”https:\/\/canada.coop\/wp-content\/uploads\/circle-background-pattern.png” global_colors_info=”{}”][et_pb_row _builder_version=”4.23.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.17.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.26.1″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

Co-operatives and Mutuals Canada (CMC)\u202fis advocating to make the Tax-deferred Co-operative Share Program (TDCS) permanent, for the benefit of agricultural<\/span>\u202f<\/span>co-operatives throughout Canada, before it expires at the end of 2025.<\/span>\u00a0<\/span><\/p>\n

This Program was created in 2005 for a 10-year period. It has already been renewed twice due to the recognition of its importance:\u202fin 2015 for a period of five years, and\u202fagain\u202fin the Fall of 2020, when it was extended to shares issued through the end of 2025. Its purpose is to help agricultural co-operatives meet their capitalization needs and was based on the December 2004 report of the House of Commons entitled <\/span>\u201c<\/span>Study on Small Business Tax Measures: Canada\u2019s Agricultural Co-operatives<\/span><\/a>\u201d.<\/span>\u00a0<\/span><\/p>\n

The Program allows agricultural co-operatives to pay a patronage dividend in the form additional shares of the co-operative. For tax purposes, the inclusion of the dividend for the recipient is deferred to the year in which the shares are redeemed. Furthermore, the co-operative is not required to withhold tax when it pays the dividend in shares when conditions are met, such as a five-year hold on the ability to redeem the shares.<\/span>\u00a0<\/span><\/p>\n

The TDCS is a crucial capitalization and resilience mechanism for agricultural co-operatives, who form an integral part of Canada\u2019s rural economy and supply Canada\u2019s Food System. This small but impactful $3 to $5 million per year tax deferral program\u202fprovides\u202fincreased stability and helps the business model remain\u202fa viable\u202foption\u202ffor agribusinesses, while allowing Canadian co-operatives to be stronger in the face of international competitors and economic challenges.<\/span>\u00a0<\/span><\/p>\n

The uncertainty around the renewal TDCS program beyond 2025 creates issues for agricultural co-operatives, who cannot wait until the last minute to consider it in their financial planning. For this reason, CMC is recommending, on their behalf, that this Program become a permanent fiscal measure.<\/span>\u00a0<\/span><\/p>\n

[\/et_pb_text][et_pb_heading title=”Letter for the Tax Deferred Profit Sharing (TDP) Program – August 30, 2024″ _builder_version=”4.27.0″ _module_preset=”default” title_level=”h2″ global_colors_info=”{}”][\/et_pb_heading][et_pb_text _builder_version=”4.27.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n

On August 30, 2024, CMC and a group of agricultural co-operatives collaborated to send a collective letter asking the federal government to make the Tax Deferred Share Program permanent.<\/p>\n

[\/et_pb_text][et_pb_button button_url=”https:\/\/canada.coop\/wp-content\/uploads\/TDCS-Letter-30-Aug-2024.pdf” button_text=”Read the letter sent to the federal government” button_alignment=”center” _builder_version=”4.27.0″ _module_preset=”default” custom_button=”on” button_border_width=”4px” button_border_radius=”100px” button_letter_spacing=”2px” button_font=”|700||on|||||” button_icon=”E||divi||400″ animation_style=”zoom” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"

Ratifying the Tax-Deferred Co-operative Share Program as a Permanent Fiscal MeasureCo-operatives and Mutuals Canada (CMC)\u202fis advocating to make the Tax-deferred Co-operative Share Program (TDCS) permanent, for the benefit of agricultural\u202fco-operatives throughout Canada, before it expires at the end of 2025.\u00a0 This Program was created in 2005 for a 10-year period. It has already been renewed […]<\/p>\n","protected":false},"author":7,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"Tax-Deferred Co-operative Share Program\u00a0- CMC","_seopress_titles_desc":"CMC is advocating to make the Tax-deferred Co-operative Share Program (TDCS) program permanent, for the benefit of the agriculture\u202fco-operatives throughout Canada.","_seopress_robots_index":"","_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"footnotes":""},"class_list":["post-243450","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/canada.coop\/en\/wp-json\/wp\/v2\/pages\/243450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canada.coop\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/canada.coop\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/canada.coop\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/canada.coop\/en\/wp-json\/wp\/v2\/comments?post=243450"}],"version-history":[{"count":5,"href":"https:\/\/canada.coop\/en\/wp-json\/wp\/v2\/pages\/243450\/revisions"}],"predecessor-version":[{"id":246028,"href":"https:\/\/canada.coop\/en\/wp-json\/wp\/v2\/pages\/243450\/revisions\/246028"}],"wp:attachment":[{"href":"https:\/\/canada.coop\/en\/wp-json\/wp\/v2\/media?parent=243450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}