Skip Links

Saskatchewan Budget 2017: Keep tax rate fair for credit unions 


Postcards on Credit Union Taxation

Credit union staff and members are being asked to send the following postcard to Saskatchewan’s Finance Minister Kevin Doherty.

Step 1. DownloadDOWNLOAD THIS POSTCARD

Step 2. Attach it to the email

Step 3. Sign the bottom of e-mail with your name and city


click on the image to send an email to Kevin Doherty:

Why are we sending the Finance Minister these postcards?

Credit union taxation is being reviewed as part of the Government of Saskatchewan’s overall review of expenditures and revenues for the upcoming provincial budget in the spring of 2017. Credit unions are asking the provincial government to keep the existing provincial tax provisions for credit unions. Credit unions already pay a fair share of tax. In 2015, Saskatchewan credit unions paid approximately $29.4 million in combined federal and provincial taxes.

Credit union taxes were reviewed just three years ago, and in the 2014 provincial budget, the Government of Saskatchewan announced that it would maintain the current provincial tax provisions for credit unions, recognizing the restraints credit unions face related to raising capital as well as their important place in the provincial economy. Every dollar of capital in the credit union system is estimated to leverage ten times more in potential lending activity. The provincial government’s decision in 2014 to maintain the competitive balance in the tax provisions for credit unions kept $11 million of capital in the credit union system in 2014 and again in 2015. Considering that multiplier effect, the current tax provisions resulted in $110M in additional lending opportunity to businesses, consumers and the agriculture sector for growth in 2014 and again in 2015.

Did you know? 

Approximately half of the small and medium-size commercial market in Saskatchewan does business with credit unions. Credit unions also hold approximately 18 percent ($2.5 billion) of total outstanding farm debt. The credit unions’ ability to generate capital for lending is critical to supporting economic growth. In Saskatchewan, credit unions contribute $600 million in annual economic impact.

How does this postcard help?

By signing and sending in these postcards, you are asking the Minister of Finance to retain the province’s credit union tax provisions. The current tax provisions are designed to accumulate capital for credit unions, and as a result, support economic growth. Credit unions primarily rely on retained earnings to meet ever-increasing regulatory requirements for capital to ensure soundness in the financial system. When banks need capital, they have the ability to issue stock on capital markets. Saskatchewan’s tax system respects the difference between credit unions and banks.

What do we do after signing the postcard?

The postage is already paid on this postcard. Your credit union can just put it in the mail.

Credit union officials are currently meeting with their local MLAs to discuss the issue. In January 2017 we will also be providing staff and members with social media tools to contact MLAs on the tax issue. Watch Twitter for #CUsgrowSK. If you have any questions regarding Saskatchewan credit unions tax advocacy campaign, please contact Leslie Trobak, Manager of Saskatchewan Government Relations at the Canadian Credit Union Association at 306-271-0407 or at ltrobak@ccua.com.

Stay Connected with CCUA

Follow + Share + Like

Twitter   Facebook   LinkedIn   YouTube   Email marketing