OTTAWA – NDP finance critic Peggy Nash (Parkdale High Park) challenged the Finance Minister to explain radical tax increases Canada’s credit unions and caisses populaires may now be facing because of Conservative mismanagement of Budget 2013.
According to a recently released Deloitte report, instead of raising the credit union tax rate from 11% to 15%, C-60 will actually more than double the tax rate to 28%.
“What this report has uncovered is worrying,” said Nash. “If this is a legislative error the Minister must immediately take corrective action. If this was a deliberate attack on Canada’s credit unions then the Minister must explain why credit unions and caisses populaires are being targeted by his government for such unfair treatment. They will now face a tax rate that's almost double what Canada’s banks are paying.”
As the Deloitte report highlights, any correction to this legislative mistake requires parliamentary approval.
“This was an unnecessary tax increase on credit unions and caisses populaires that we opposed at the time. Now we discover it was very poorly managed,” said Nash. “In the face of another prorogation, the Minister of Finance has to come forward, take responsibility and explain how he is going to fix this mistake.”
To read the Deloitte report: