Equity FAQs
February 20, 2020

Can I use my local Co-op number in other communities?
Your Red River Co-op number works only within the communities served by your Red River Co-op. Communities served by another Co-op will not use the same member number. Each Co-op is independent and has different policies regarding equity and cash back.

Do you have to be a member to shop at Red River Co-op?
No, but by becoming a member you become a part owner of the business and share in the earnings of Red River Co-op. You can also attend the annual meeting, vote on resolutions, and run for a position on the Board of Directors.

What is Equity? How Does It Work? How do I Earn a Share of the Profits?
By buying a membership in Red River Co-op, you are a part owner. Each time you purchase petroleum, food and/or prescriptions from our 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. The more you purchase, the more you receive in equity. Additionally, Red River Co-op may buy back a portion of your equity. This amount becomes the cash payment to you, as a member-owner. Making the Smart Stop at Red River Co-op and using your member number is a great investment in your future.

Why is my Social Insurance Number required for my membership?
Your Social Insurance Number is required under the Income Tax Act for reporting purposes and in order to issue a T4A slip. Red River Cooperative Ltd. is required by law to have this number on file and does not violate the Personal Information Protection and Electronic Documents Act (PIPEDA).
• The number provided will not be used for any other purpose.
• In the event your equity allocation is over $100.00 your SIN will assist you with the ability to collect the withholding tax held by Canada Revenue Agency (CRA) when filing your annual income taxes.

I just received a T4A in the mail. Why did I receive this?
A T4A is issued to a Member if their allocation is in excess of $100. The T4A you received in February 2022 includes the amount of Share Equity you earned in 2021 (Box 3), as well as the amount of Withholding Tax (Box 22) that was remitted on your behalf. The T4A will not match the cheque you received in 2021, as the T4A reflects the total Share Equity you earned. The cheque is based on cash repayments that is approved by the Board of Directors.

We’re required to report allocations over $100, and to withhold and remit 15% of anything above that amount to the Canada Revenue Agency. Your refund isn’t necessarily taxable! Refunds from consumer goods/personal use (groceries, household items, gas for private car use, etc.) are not subject to tax. You are entitled to claim any withheld tax, whether taxable or not taxable income.

What do I do with this T4A?
Box 22, Income Tax Deducted:
The tax withheld and remitted to CRA is a direct benefit to all members and can be used as a prepayment of tax. Include the amount shown in Box 22 as part of “total tax deducted per information slips” on your income tax form.

Box 30, Allocation:
Consumer Goods (Personal Use):
If your purchases from Red River Co-op were for personal use only, the allocation is not taxable. You receive the benefit of the tax withheld but do not include the patronage allocation (Box 30) as part of your income.
Suggestion: Write “Consumer goods only” on the copy you are enclosing with your income tax return to avoid any confusion with the Canada Revenue Agency. If you are filing electronically, enter the non-taxable portion in the non-taxable box.

Business/Farm Purchases:
If you are claiming some or all of your purchases from Red River Co-op as expenses against income, then you must include the applicable portion of the allocation on your income tax form as taxable income. You receive the benefit of the tax withheld (box 22 of the T4A).

You paid back a portion of my equity, what happens to the rest?
The remainder of the equity stays in your share account with Red River Co-op. It will be used in calculating cash repayments in future years. It also helps finance the business, and maintain and upgrade assets to ensure ongoing success at Red River Co-op.

When can I get my equity paid out?
Provisions for payments of equity are made for:

1. Estates,
2. Members of 65 years of age - repayment only - equity balance less original $5 membership share, or;
3. Members who move out of the trading area.

It is your responsibility to notify Red River Co-op Member Services who will send you an Application to apply for any of the above. Please call 204-272-8989 (within Winnipeg) or 1-844-616-1447 (outside Winnipeg).

All requests will be paid within six months after approval by the Board of Directors.

Why is there GST on my statement?
Canada Revenue Agency 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 through cash repayments.

Why didn’t I get a cheque?
The cash repayment is approved by the Board of Directors. This year the general repayment is based on a minimum of 70% 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.

When is a cheque considered stale-dated, and no longer valid?
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”.