I-3 - Taxation Act

Section 800 Disposition versions

2006-03-01

800. A credit union may, in computing its income for a taxation year, deduct the aggregate of the payments it makes to its members in the year or within twelve months thereafter, as bonus interest payments or pursuant to allocations in proportion to the loans made to its members.

Such deduction is permitted, however, only if such payments were not deductible from the income of the credit union for the preceding taxation year.

Furthermore, such a deduction is permitted only if such payments are credited for the year by the credit union to the member, at the same rate as that at which such payments are similarly credited for the year to all other members of the credit union. Those payments are computed at a rate depending, in the case of bonus interest payments, on the amount of interest payable to the member in the year, on the amount of money the member has on deposit with the credit union, and, in other cases, on the amount of interest payable by the member on the borrowed money or the amount of money that he borrowed from the credit union.

1972, c. 23, s. 608; 1975, c. 22, s. 215; 1982, c. 5, s. 148; 1995, c. 49, s. 180.