KELOWNA — Interior Savings Credit Union commends the Government of British Columbia on its decision to reinstate the credit union tax treatment, which was announced in the Sept. 11 B.C. budget update.
Previously, the lower tax rate was implemented in recognition of the fact that B.C. credit unions are in a unique position to reinvest capital back into the provincial economy.
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A competitive tax environment enables credit unions to reinvest in a diverse provincial economy by creating quality, head-office jobs across the province, providing more financial support for community projects, and making more local lending decisions to help small businesses and individuals thrive.
The province had begun to phase out the small business tax rate on credit unions, with plans to increase it incrementally over a period of four years. In January 2017, the government announced it would defer additional increases, pending further consultation. Without the restoration of the credit union tax treatment, B.C. credit unions faced a tax increase of over $26 million annually. That is money that would otherwise have been reinvested back into the local credit union and local economy or shared with members and the community.
“We see this recent budget decision as a signal that the BC Government recognizes the important contribution credit unions make to building strong, vibrant communities,” said Kathy Conway, President and CEO of Interior Savings. “With this permanent tax change, we’ll have more money to lend to our members and to support local businesses and community development.”
Last year, Interior Savings returned $2.5 million to members through its Member Rewards profit sharing program, awarded $453,000 in bursaries to local students and invested another half a million in support of community events, programs and services.
“We look forward to continuing to work with the government to develop legislation and regulations that enable us to grow and support our communities,” said Conway.
About Interior Savings:
Interior Savings is a member-owned, democratically-controlled credit union dedicated to creating local money while helping to build vibrant communities. Through its 21 branches, 16 insurance offices, Member Service Centre, and two Commercial Services Centres, the Credit Union offers personal and commercial banking and a full range of insurance and wealth management services to more than 70,000 members across 14 communities. Since 2002, Interior Savings has returned $53.8 million to members through its Member Rewards Program and invested nearly $8 million in support of community programs.