Commentary

D7.644 Credit unions

Corporate tax
Corporate tax | Commentary

D7.644 Credit unions

Corporate tax | Commentary

D7.644 Credit unions

A loan society which is registered as a credit union under the Co-operative and Community Benefit Societies Act 20141 has the following tax exemptions2:

  1.  

    (a)     loan relationship credits are not taxable if they arise from loans made to members3, unless the society has failed to comply with a requirement under ITA 2007, s 887(2) to make a return of payments for any accounting period, in which case the tax exemption does not apply to that accounting period4.

  2.  

    (b)     loan relationship debits arising from debts owed to a member are not deductible5;

  3.  

    (c)     the activity of the

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