What is Equity? How Does it Work?
By holding equity in Clearview Co-op, you are a part owner. Each time you purchase petroleum products 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 20% of my equity back, what happens to the rest?
The remainder of the equity remains in your share account with Clearview Co-op. When allocations are made in future years, the allocation amount will be added to your remaining equity, increasing your equity balance. Then as repayments are made, the repayment is calculated on your total equity balance after the current year's allocation.
When can I get of my Equity paid out?
Provisions for payments of equity are made for:
- Members over 65 years of age;
- Members who move out of the trading area.
A written application for repayment must be provided to Clearview Co-op in each of these instances . All requests are subject to Board approval.
Why is Tax taken off?
Clearview 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 petroleum was 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.
Why didn't I get a cheque?
The cash repayment is based on your total membership equity. This year, the cash repayment was 15% of your total equity. A cheque would have been issued to you if the cheque amount was $10 of more. That means if you had equity of $100 or more after the allocation, you would have received a cheque with your equity statement. For those members with less than $100 of equity, a cheque was not issued.