[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=”4.16.1″ 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
[\/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=”4.26.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n
CMC is advocating that the Government of Canada consider indivisible reserves as non-profit capital for taxation purposes, as it cannot be divided amongst members of a co-operative. Instead, at the co-operative\u2019s dissolution or sale, they are allocated to another co-operative entity.<\/span>\u202f<\/span>It is permanent co-operative capital treated as a public good<\/span>\u202f<\/span>similar to<\/span>\u202f<\/span>all reserves in non-profit organizations (including non-profit co-operatives), which members have no private claim to it.\u00a0<\/span>\u00a0<\/span><\/p>\n Indivisible reserves can be mandatory or adopted by an irrevocable choice of a co-operative. They are derived from a portion of a co-operative\u2019s annual surpluses and contribute to the capitalization, longevity, and development, while acting as a disincentive to demutualization.<\/span>\u00a0<\/span><\/p>\n Many countries support co-operatives with indivisible reserves by removing the burden of corporate taxation on<\/span>\u202f<\/span>the proportion of their income\u202fallocated\u202fto the indivisible reserve.\u202f\u202fLegislative safeguards can also be put in place to:<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.26.0″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.26.1″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n The\u202f<\/span>International Cooperative Alliance<\/span><\/a>\u202f<\/span>(ICA) in its<\/span>\u202f<\/span>Guidance Notes to the Cooperative Principles<\/span><\/a>\u202f<\/span>(2015)<\/span>\u202f<\/span>points out\u202fthat an indivisible reserve emphasizes the co-operative difference. This is\u202funder the<\/span>\u202f<\/span>third co-operative principle,\u202f<\/span>Member Economic Participation<\/span><\/a>,\u202fas part of the capital<\/span>\u202f<\/span>becomes common property of the co-operative.\u202fThis is why\u202fwhen members are<\/span>\u202f<\/span>developing their co-operative<\/span>\u202f<\/span>and setting\u202fup reserves,<\/span>\u202f<\/span>at least, part<\/span>\u202f<\/span>of the latter should<\/span>\u202f<\/span>be indivisible.<\/span>\u202f<\/span>\u00a0<\/span><\/p>\n There are\u202fjurisdictions\u202fwhere the indivisible reserve is mandatory for all types of co-operatives, specifically\u202fin\u202fQuebec and Newfoundland\u202fand Labrador, as well as in non-profit<\/span>\u202f<\/span>housing<\/span>\u202f<\/span>co-operatives\u202facross\u202fCanada.\u202fCMC is not advocating for<\/span>\u202f<\/span>mandatory\u202findivisible reserves in<\/span>\u202f<\/span>\u201cfor-profit\u201d<\/span>\u202f<\/span>co-operatives.\u202fHowever, CMC is advocating for\u202f<\/span>\u202f<\/span>fair tax treatment and\/or other fair public policy<\/span>\u202f<\/span>implemented for co-operatives that\u202fdo\u202fhave them.<\/span>\u202f<\/span>\u202f<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Considering Indivisible Reserves as Non-Profit Capital for Taxation PurposesCMC is advocating that the Government of Canada consider indivisible reserves as non-profit capital for taxation purposes, as it cannot be divided amongst members of a co-operative. Instead, at the co-operative\u2019s dissolution or sale, they are allocated to another co-operative entity.\u202fIt is permanent co-operative capital treated as […]<\/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":"Promoting fair taxation for indivisible reserve\u00a0- CMC","_seopress_titles_desc":"CMC is advocating for the implementation of fair tax treatments and\/or other fair public policy treatments for co-operatives with an indivisible reserve.","_seopress_robots_index":"","_seopress_analysis_target_kw":"Government Relations,Public policies,Co-operatives","_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"footnotes":""},"class_list":["post-243516","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/canada.coop\/en\/wp-json\/wp\/v2\/pages\/243516","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=243516"}],"version-history":[{"count":5,"href":"https:\/\/canada.coop\/en\/wp-json\/wp\/v2\/pages\/243516\/revisions"}],"predecessor-version":[{"id":245099,"href":"https:\/\/canada.coop\/en\/wp-json\/wp\/v2\/pages\/243516\/revisions\/245099"}],"wp:attachment":[{"href":"https:\/\/canada.coop\/en\/wp-json\/wp\/v2\/media?parent=243516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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