Credit Union Closing

jasconius

Registered User
Messages
217
My local CU is closing in the near future due to lack of business and is expecting to pay out an amount to each member equal to the sum of reserves deemed now unneccessary (eg Bad Debts, Statutory reserves etc) divided by the no. of members.

Given that these these reserves were taken out of 'surpluses' in previous years and would other have been paid as dividends and may have attracted DIRT, what would the position now be on receipt of the closure payment?
 
Given that this is not a regular occurrance, I might expect that the Credit Union would have guidance for members on their possible tax opbligations in relation to the payment. They will be liaising with their auditors on this matter and perhaps they already have ascertained the procedure for members. Maybe a call to your CU might help.
 
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