Membership Services

WHY BECOME A MEMBER?

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Advantages to Membership with Carman Co-op

What is Equity?

Equity represents your ownership share of the Carman Co-op. Each time you purchase merchandise you give the cashier your membership number. At the end of the fiscal year (If the Co-op shows a profit) a percentage of these purchases are allocated to your Equity Account. This is your share of the profits of the Co-op! If you buy goods from another business this profit would go in the owner's pocket. This is the Co-op difference! The more you purchase the more you share in the profits of the Carman Co-op. The Board may decide to buy back a portion of your Total Equity (A Cash Repayment). The higher your Equity Balance the higher the Cash Repayment. The Cash Repayment takes place in October of each year (as funds allow).

What happens to the Equity that is not paid out?

These "Retained Earnings" are used to finance the Carman Co-op so that we can upgrade, operate and expand our facilities without borrowing funds from external sources (Banks, Credit Unions etc.). Eventually, this Retained Equity will be paid back to you in full.

When does my Equity Account get paid out in full?

Provisions for full payments of Equity are made for:

Written application for repayment must be provided to the Carman Co-op. Members over 70 years of age and Non-Profits only need to make an initial application and then they will be automatically repaid each October (If funds allow). All applications are subject to Board of Director's approval.

Why is there GST on my statement?

Revenue Canada treats the Patronage Allocation similarly to a discount. Therefore, you are refunded a portion of the GST that you paid. The GST is added to your Equity Account. Eventually, you will get this back in cash. If you have used your purchases at the Carman Co-op as a business expense (And have taken Input Credits on same) you must repay this amount on your next GST return.

Why is Income Tax Taken off my Equity Balance?

Carman Co-op is required to deduct 15% Income Tax on any Patronage Allocation amounts over $100.00. This Income Tax is remitted to the Federal Government by us on your behalf. You will receive a T4A in February that will show your total Patronage Allocation and the Income Tax deducted. When you file your return the Income Tax Withheld (Box 22 on the T4A) can then be claimed as Income Tax Withheld. If the purchases were used for personal purposes, the Patronage Allocation (Box 30 on the T4A) is not included in your Taxable Income. If you are claiming some or all of the purchases as a business expense you must include the applicable portion of the Patronage Allocation as Income on your return.

Is my Cash Repayment Taxable?

No, any Cash Repayments from your Equity Account are never taxable.  If you have used your purchases as as a business expense (see above) you will claim the Allocation as income-not the Cash Amount.

Why didn't I get a cheque in October?

The cash repayment is based on both your previous year Patronage Allocation and your total Equity Balance. A higher Equity Balance results in a higher percentage of your Patronage Allocation being paid in cash. If you just purchased your Membership in the current year you would not have any Patronage Allocations as yet. You must also retain a minimum of $100.00 in Total Equity. Also, cheques under $10.00 are not issued.

Here are the ranges that will be used for the General Cash Repayment in October 2011:

The allocation was based on 2010 purchases. 

Information letter (including an Equity Statement sample) that will be distributed to our members in October 2011 is here .

If you have any further questions please contact the Administration Department.