Earnings from South Country Co-op Limited are distributed to member-owners based on their purchases during the fiscal year. Earnings are returned to the members in equity based upon financial performance of the company as determined by the Board of Directors on an annual basis. From there, the Directors elect if a General Cash Repayment will be made that year.
The cash portion is paid out to you each year, known as your "dividend cheque".
The equity portion is your money that is being retained by South Country Co-op Limited to help finance the business, and maintain and upgrade assets to ensure ongoing success. It's a reinvestment back into the company, and our communities, to continue bringing local products and superb service to our members and guests.
Equity is paid out as per our By-Laws:
- to your estate
- when the member has reached the age of 65
- if the member has permanently moved out of our trading area
Is my cash refund taxable?
- A tax of 15% is withheld from refunds exceeding $100.
- If your purchases are for personal use, they are not taxable and you can claim back this amount as pre-paid income tax by using box 22 of your T4A and including this amount on line 437 of your income tax return.
- If your purchases are for business purposes, the amount of your refund must be included as part of your income tax calculation.