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Tax Implications

Return Paid OnTax TreatmentOptions
Loan and Mortgage InterestTax free unless the interest paid was claimed as a tax deduction.Can contribute the shares to a RRSP Share account and receive a contribution receipt.
RRSP InterestNo tax is payable, as the Shares will be paid to the RRSP plan and held as Shares in that plan. No tax receipt will be issued and your contribution room will not be affected.Additional Shares can be transferred to this account for which a contribution receipt will be issued, assuming there is contribution room available.
RRIF InterestNo tax is payable as the Shares will be paid to the RRIF and held as Shares in that plan. Minimum annual payments will be made from this plan and transferred as Shares to a non-registered Share account.Any member under 69 years of age, can transfer these Shares to a RRSP Share account.
Savings/Term Deposit InterestShares earned will be paid to a Bonus Share account and treated as interest income for the year in which they are received. A tax slip (T5) will be issued in the following year.Members can contribute the Shares to a Share RRSP account as a deposit and receive an RRSP contribution receipt, assuming there is contribution room available.

"When I got that first Bonus Share cheque in the mail, I couldn't believe it. I held onto it for 3 months to show it off to my friends back in Ottawa. It gave me such joy to be rewarded by my credit union."

- Madelyn Hayes