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ARTICLE · 16 SEPTEMBER 2014

RRSP Eligibility For Renewable Energy Co-Operatives: Could There Be A Solution At Last?

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In order to be a "co-operative corporation" for the purposes of the ITA, the corporation must satisfy the requirements set out in section 136(2)(a) of the ITA.

CanadaTax
Ian Shewan
Ian Shewan
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One of the major obstacles facing renewable energy co-operatives is the concern that, although they are a co-operative for the purposes of the Cooperative Corporations Act (Ontario) (the "CCA"), they may not be co-operatives for the purposes of the Income Tax Act (Canada) (the "ITA"). 

In order to be a "co-operative corporation" for the purposes of the ITA, the corporation must, among things, satisfy the requirements set out in section 136(2)(a) of the ITA which requires:

The statute by or under which it was incorporated, its charter, articles of association or by-laws or its contracts with its members or its members and customers held out the prospect that payments would be made to them in proportion to patronage.

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