CRA Announces Interest Rates for First Calendar Quarter

On Dec. 15, the Canada Revenue Agency (CRA) announced the prescribed annual interest rates in effect from January 1 to March 31, 2016, confirming there are no changes to the prescribed interest rates since last quarter with the exception of one category:  the interest rate for corporate taxpayers’ pertinent loans or indebtedness.

The prescribed amounts for income tax purposes are:

• 5% - charged on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums
• 4.41%  rate charged for corporate taxpayers’ pertinent loans or indebtedness.
• 3% - individual taxpayer overpayments on income taxes owing.
• 1% - rate used to calculate taxable benefits for employees and shareholders from interest free and low-interest loans and corporate taxpayer overpayments

Additional Educational Resource – for a complete update on tax preparation and planning changes for 2016, register for DAW Advanced Personal Tax update that will be hold in Winnipeg, Calgary, Vancouver and Toronto between January 20 - 25, 2016. Please click here for detailed agenda and keynote speakers information.

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