On September 23, 2013, the Canada Revenue Agency announced the prescribed interest rates for the fourth quarter. These interest rates are set by the Canada Revenue Agency every quarter for a variety of items, including interest on overdue taxes and interest on overpayments of tax, among other things.
With one exception, the interest rate for all categories is being increased by 1%. Notably, the rate of interest used to calculate taxable benefits on interest-free and low-interest loans is being increased from 1% (where it has remained for several years) to 2%, which will have an impact on some tax planning strategies. The entire text of the Canada Revenue Agency’s news release can be found at: www.cra-arc.gc.ca/nwsrm/rlss/2013/m09/nr130923-eng.html
Melodie Lind can be reached at (250)869-1210 or at [email protected]
