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EKC supports chamber recommendations for fair taxation
East Kootenay Community Credit Union (EKC) supports consultation with the current B.C. government to restore the small business tax credit for credit unions – together with B.C. credit unions, chambers of commerce and boards of trade.
EKC supports continued competitive financial services and local economic investment for British Columbia through fair taxation of credit unions.
A planned phase-out of the provincial small business tax rate on credit unions would put increased pressure on capital, impacting local economies. Without changes, after full phase out, B.C. credit unions would face a tax increase of over $26 million annually, which is money that could be better spent by credit unions to support our local communities.
Jody Burk, CEO of EKC stated, “Credit unions have a key role in the financial services industry, especially in rural communities. Credit unions, as B.C.’s cooperatively-owned financial sector, are in a unique position to reinvest capital back into the provincial economy. It is important to keep local investment a top priority.”
“The Cranbrook Chamber of Commerce solicited guidance and information from senior management at East Kootenay Community Credit Union in the development and advancement of this policy on the floor of the BC Chamber of Commerce AGM. It is vital that the Credit Union’s across BC work within a tax and regulation regime that keeps them viable, relevant and strong,” said Cranbrook Chamber Executive Director David D. Hull.
“Credit unions play an important role in B.C. communities by providing financial services to businesses and individuals in addition to supporting local projects that contribute greatly to the community.”
The Cranbrook Chamber of Commerce spoke on the floor of the BC Chamber AGM in favour of this policy in advance of an overwhelming majority vote in the affirmative. The BC Chamber policy team will now work to advance this policy to the various levels of government.
Burk recognizes the ongoing support from the Chamber of Commerce and especially David Hull.
In January 2017, the government deferred a planned tax increase for one year, pending further consultation. BC Chamber of Commerce recently released its 2017-2018 Policy & Positions Manual, including a section recommending a Competitive Tax Environment for Credit Unions.
British Columbia’s 42 credit unions operate in every corner of the province and provide financing for homeowners and businesses in excess of $56 billion.
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