Our Red River Co-op Member Services can assist you with all your membership questions:
- Change your address
- Receive new Member Key tags
- Request a form (Name Change/Transfer, Moved Outside Trading Area, Estate, Age 65 or other),
Please contact them at:
In Winnipeg: (204) 272-8989
Outside of Winnipeg: 1 (844) 616-1447
Be sure to have your Co-op number available to confirm your identity.
For your convenience, members can also Change Your Address online now!
If you are moving within the Province, you can change your address at:
manitobaaddresschange.ca This site provides a simple way to notify multiple organizations of your change of address. Save time and avoid duplicating your efforts as you update your address for:
- Red River Co-op
- Manitoba Health
- Manitoba Hydro
- The City of Winnipeg Water and Waste Department
- The University of Manitoba
- And many others!
Red River Co-op’s Board of Directors is pleased to announce the 2016 allocation rates to our membership: 7.25% on fuel purchases (average of 6.56 cents per litre – based on an average regular unleaded retail pump price of 90.5¢/litre during 2016), 5% on pharmacy purchases, and 2% on food purchases.
Member Reminder: Tax Treatment of Red River Co-op Patronage Allocations
As a result of a number of calls received during 2016 by the Red River Co-op Member Services Department we wish to remind members of the income tax treatment of the patronage allocation they receive.
The taxability of the patronage allocation varies between members. However, If you are asked to provide the CRA with a copy of your T4A be sure it is labelled appropriately according to the percentage of the patronage that was used for business use:
- “For Consumer Goods only” – if 100% of the purchases were for goods or services you consumed and for which you cannot deduct the cost of when you calculate your income. In this case, the patronage is not taxable.
- “X% Taxable, Y% Consumer Goods” – if a portion relates to business/farm purchases and a portion relates to non-business expenses.
- Blank if all of the purchases are for business expenses that are deductible for income tax purposes. In this case, the patronage is taxable.
If you have misplaced your T4A, call Red River Co-op and we will request and send you a copy.
Information is provided below that relates to the patronage refund and income tax withheld to assist you when speaking with the CRA. If you require further assistance or clarification when speaking with the CRA, ask to speak with their supervisor or request a technical call back.
Patronage Allocations and T4As:
Red River Cooperative Ltd. provides its members with a patronage allocation based on the member’s purchases at a rate approved by the Board of Directors. Red River Co-op is required to withhold and forward to the CRA 15% of any allocation that exceeds $100. If the allocation is over $100, a T4A will be generated and sent to you. The allocation is reported in box 30 on the T4A and the withholding tax (income tax deducted) is reported in box 22 on the T4A.
If your allocation reported in box 30, is for business/farm use (Red River Co-op purchases have been deducted as expenses), the allocation must be reported as income on your tax return on line 130. If your allocation reported in box 30, is for personal use (consumers goods), the allocation need not be reported as income (do not enter on line 130), based on the information provided on the back of the T4A slip. If your allocation reported in box 30, relates partially to business/farm and partially to personal use (consumer goods) then a portion of the allocation that relates to business/farm use only must be reported as income on line 130. If you are filing manually ensure you label the T4A slip indicating the portion that relates to business/farm use and personal use. If you are filing electronically, enter the non-taxable portion in the non-taxable box, and the remainder in the taxable box when entering the T4A slip into any personal income tax preparation software program.
Box 22 contains the reported amount of income tax withheld by Red River Co-op and submitted to the CRA on the member’s behalf as a prepayment of income tax. Regardless of whether the allocation reported in box 30 is taxable or non-taxable income, the income tax deducted and reported in box 22 must be reported as part of “total tax deducted” on your income tax return.
Unfortunately, for the members that have received Income Tax Notices of Reassessment CRA has included the patronage allocation in their income and we have been told CRA cannot simply “undo” the reassessment. Members will have to individually request a second reassessment to remove the patronage allocation from income if some or all of the patronage pertains to consumer goods purchases. Members can either make their change online if they have subscribed to MyAccount, or make the request by mail. The link to the CRA website containing instructions for both is:
A T4A is created to report income for the year that it is received. T4As are mailed out in February of each year to members who received an allocation refund of $100 or more in February of the preceding year. Please keep your address current.
Red River Co-op is required by CRA (Canada Revenue Agency) to report all member allocations in excess of $100 and to withhold 15% of the amount earned over $100 and remit it to CRA on your behalf as a pre-payment of income tax. The allocation is reported in box 30 of the T4A and the income tax withheld is reported in box 22 of the T4A.
Allocations are not necessarily taxable.
- If your purchases were for personal use (consumer goods), the allocation is not taxable. Do not include the amount in box 30 of your tax return as income.
- If your purchases were for business/farm use, the allocation is taxable and must be include on line 130 of your tax return.
- If your purchases were partially for business/farm use and partially for personal use (consumer goods) then a portion of the allocation that relates to business/farm use only must be reported on line 130.
- If filing manually ensure you label the T4A slip indicating the portion that relates to business/farm use and personal use. If you are filing electronically, enter the non-taxable portion in the non-taxable box, and the remainder in the taxable box when entering the T4A slip information into any personal income tax preparation software program.
What is Equity? How Does it Work?
By holding equity in Red River Co-op, you are a part owner. Each time you purchase petroleum, food and pharmacy and give your membership number your purchases are recorded. At the end of the fiscal year, a portion of your purchases may be returned in the form of an equity allocation (share dividends). The more you purchase, the more you receive in equity. In addition, the Board may buy back a portion of your total equity (share redemption). This amount becomes the cash payment to you, a member-owner.
You Paid a portion back of my equity, what happens to the rest?
The remainder of the equity stays in your share account with Red River Co-op. When allocations are made in future years, the allocation amount will be added to your remaining equity, increasing your equity balance. As cash repayments are made, your equity balance is reduced by that amount. The remaining equity also helps finance the business, and the maintenance and upgrade assets to ensure ongoing success of your Co-op.
When can I get of my Equity paid out?
Provisions for payments of equity are made for:
- members over 65 years of age;
- and members who move out of the trading area.
A written application for repayment must be provided to Red River Co-op in each of these instances . All requests are subject to Board approval.
Why is there GST on my statement?
Revenue Canada allows the GST to be returned to you based on your allocation. Red River Co-op returns that GST to you by adding it to your equity account, ultimately getting paid back to you in the form of cash repayments.
Why is Tax taken off?
Red River Co-op is required to submit a minimal amount of tax to Revenue Canada. Fifteen percent of any allocation over $100 is submitted on your behalf. When filing your income tax, you are entitled to include the deduction as a tax credit (box 22 on the T4-A statement). If the purchases were used for personal use only, the allocation (box 30 on the T4-A) does not need to be included as part of your income. If you are claiming some or all of the purchases as business expenses, then you must include an applicable portion of that allocation as income on your income tax form.
For a detailed example of a Red River Co-op Equity Statement please click here.
The cash repayment is approved by the Board of Directors. This year the general repayment is based on a minimum of 75% repayment of your current year's allocation plus 10% of your total equity before this year's allocation. A cheque will not be issued for less than $10.
Under Canadian Payments Association (CPA) Rule A4, Section 22, a cheque is considered stale-dated after six months, unless it has been certified. Financial institutions don’t have to cash a cheque if it is considered “stale-dated”.