SURREY, BRITISH COLUMBIA--(Marketwired - Feb. 19, 2014) - Coast Capital Savings congratulates the provincial government for tabling a balanced budget and for maintaining the small business tax exemption for credit unions for an additional three years.
"We were facing a significant, immediate provincial tax increase if the province had automatically followed suit with the federal government in phasing out the small business tax deduction for credit unions," said Tracy Redies, CEO of Coast Capital Savings. "We're thankful the Province has decided to wait to phase out this important deduction, as it gives us time to work with government to find a tax structure that is fair and recognizes the unique challenges credit unions face in remaining competitive while serving their members, supporting communities and stimulating the economy."
Redies went on to explain that eventually phasing out both the federal and provincial deduction would result in an overall tax increase of $7.6 million for Coast Capital - equivalent to nearly 10% of the credit union's profits.
"It's important to remember that, unlike banks, those profits aren't going into the pockets of shareholders. Credit union profits are reinvested into retained earnings that protect our members' deposits, and back into BC community causes. This year alone, Coast Capital will donate $5.7 million, and the credit union sector will invest nearly $49 million in communities."
Redies also noted that Coast Capital applauds the Province for fulfilling its commitment to a balanced budget.
"At the end of the day, whether you're a family, a business or a Province, you can't get ahead if you continually spend more than you bring in. Finding that balance is a key thing we try to help our customers achieve every day at Coast Capital, and we're happy to see government provide this leadership for British Columbians."