Canada Revenue Agency Announces Increase To Interest Rates

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 lind@pushormitchell.com 

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