Subsection 135(1) - Deduction in computing income
Administrative Policy
19 November 2013 External T.I. 2011-0414201E5 F - Coop, ristournes, société de personne
A coop holds an interest in a limited partnership whose members also are members of the coop. For purposes of s. 135, are the customers of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(a) | customers of LP rather than of members | 176 |
22 July 2013 External T.I. 2012-0467231E5 - Patronage dividends and capital gains
Patronage dividends paid to members totalling the amount of taxable capital gains realized by a co-op will be deductible by the co-op pursuant to...
20 September 2005 External T.I. 2005-0140601E5 F - Ristournes - Coop de travailleurs actionnaire
CRA indicated that a shareholder worker co-operative can make payments to its members that will be deductible under s. 135(1), stating:
19 June, 1995 T.I. 950842 (C.T.O. "Patronage of Dividends by Non Co-op"
"Private retailers who are not organized as co-operatives may deduct the amount of patronage dividends paid to customers. Such payment may be made...
13 March 1992 External T.I. 5-920029
Payments made by a credit union to non-members which were similar in nature to allocations in proportions to borrowing and bonus interest payments...
13 March 1992 T.I. (Tax Window, No. 18, p. 7, ¶1804)
A credit union can deduct payments made to non-members which, if made to members, will be deductible under s. 137(2) provided that the payments...
Subsection 135(1.1)
Administrative Policy
25 October 2004 External T.I. 2004-0086261E5 F - Ristournes
After referring to the legislative proposal to add s. 135(1.1) applicable to payments made after March 22, 2004 and related changes to the...
Subsection 135(2) - Limitation where non-member customer
Cases
The Queen v. Consumers' Co-Operative Refineries Ltd., 87 DTC 5409, [1987] 2 CTC 204 (FCA)
The taxpayer paid patronage dividends to its sole member in respect of refined products sold to it but no such payments were made to purchasers of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Amount | allocation in proportion to patronage could be made at a zero rate | 18 |
| Tax Topics - Statutory Interpretation - Absurdities | 49 |
Subsection 135(2.1)
Administrative Policy
25 February 2015 External T.I. 2013-0503941E5 F - Priority of subsections 135(2) or 135.1(3)
CRA addressed a numerical example where the cash dividends and patronage dividends paid as tax-deferred cooperative shares for the year were $6...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 135.1 - Subsection 135.1(3) | non-deductible excess cannot be carried forward | 127 |
Subsection 135(3)
Administrative Policy
29 April 2005 External T.I. 2005-0117371E5 F - Ristourne payée à une société de personnes
Regarding the withholding tax treatment of a payment made pursuant to an allocation in proportion to patronage (a "patronage dividend") to a...
12 May 2004 External T.I. 2004-0072951E5 F - Ristournes versées dans un REÉR
Regarding a patronage payment made to an RRSP, CRA stated:
[W]here the person receiving the payment of a patronage dividend under section 135 is a...
Subsection 135(4) - Definitions
Allocation in Proportion to Patronage
Administrative Policy
14 December 2012 External T.I. 2012-0436981E5 F - Ristournes de coopératives de travailleurs
S. 149.5 of the Quebec Cooperatives Act provides for the inclusion in a shareholding workers cooperative’s enhancement reserve of a portion of...
6 October 2005 External T.I. 2005-0146061E5 F - Coop de travailleurs actionnaire - montants versés
After finding that a workers shareholder cooperative qualified as a cooperative corporation within the meaning of s. 136(2), CRA...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 82 - Subsection 82(1) - Paragraph 82(1)(a) | interest on a preferred share was a dividend | 27 |
| Tax Topics - Income Tax Act - Section 136 - Subsection 136(2) | workers shareholder cooperative qualified | 108 |
19 January 2005 External T.I. 2004-0081001E5 F - Réserve de valorisation d'une coopérative
S. 149.1 of the Quebec Cooperatives Act provided that certain cooperatives could set up an “enhancement reserve” to value the use of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 181.2 - Subsection 181.2(3) - Paragraph 181.2(3)(b) | enhancement reserve of Quebec cooperative added to capital | 51 |
17 July 2001 External T.I. 2001-0091015 F - RISTOURNES DE COOPERATIVES DE TRAVAILLEURS
In finding that a worker cooperative could deduct patronage dividends to members, CCRA stated:
[T]he term "customer", for the purposes of section...
19 June 1995 Memorandum 950842 (C.T.O. "Patronage Dividends Paid by Non Co-ops")
"Although it is usually a co-operative that deducts patronage dividends, this deduction is available to any taxpayer who qualifies including sole...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Payment & Receipt | 27 |
7 June 1993 T.I. (Tax Window, No. 31, p. 23, ¶2549)
The payment by a non-profit housing project for seniors of the excess of the selling price for units over the cost of construction would not...
26 August 1992 T.I. (Tax Window, No. 23, p. 19, ¶2138)
A payor organization will not be considered to have failed to make "allocations in proportion to patronage" by virtue of members waiving their...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 135 - Subsection 135(7) | 29 |
Customer
Administrative Policy
29 January 2018 External T.I. 2017-0702731E5 - Patronage dividends and partnerships
Can a cooperative corporation, that is a member of a limited partnership, deduct patronage dividends computed on the basis of sales made by the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(a) | partnership rather than member was taxpayer for patronage dividend purposes | 76 |
Income of the Taxpayer Attributable to Business Done With Members
Cases
Interprovincial Co-operative Ltd. v. The Queen, 87 DTC 5115, [1987] 1 CTC 222 (FCTD)
It was held that although suppliers shipped to, and billed, members of the co-operative directly, the members acted as agents of the co-operative...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Onus | 62 | |
| Tax Topics - Income Tax Regulations - Regulation 1102 - Subsection 1102(1) - Paragraph 1102(1)(c) | property acquired only because parent so directed | 92 |
Sedgewick Co-operative Association Ltd. v. The Queen, 83 DTC 5455, [1984] CTC 14 (FCTD)
Since the word "income" in s. 135(4)(d) (and s. 135(2)) is not preceded by the word "business", that "income" is to be calculated on the basis of...
Administrative Policy
29 February 2016 External T.I. 2015-0613961E5 - Patronage dividends - partnership income
Is a cooperative corporation that is a limited partner required to include its share of partnership income in computing its income for s. 135(4)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f) | flow-thrugh of LP income for s. 135 purposes | 74 |
Subsection 135(7) - Payment to customer to be included in income
Administrative Policy
9 December 2010 External T.I. 2010-0364001E5 F - Ristourne de consommation, feuillet T4A
In finding that an amount received by virtue of an allocation in respect of "consumer goods or services" as defined in s. 135(4) is not required...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 218 | T4A required where annual payments in proportion to patronage exceed $500 | 96 |
26 August 1992 T.I. (Tax Window, No. 23, p. 19, ¶2138)
A patronage dividend will not be included in the income of a co-operative member if the member unconditionally foregoes her present and future...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 135 - Subsection 135(4) - Allocation in Proportion to Patronage | 41 |