Worth noting: CRA interest rates and pooled registered pension plans

• From Jan. 1 to March 31, 2012, the Canada Revenue Agency (CRA) will charge you 5% interest on overdue taxes, Canada Pension Plan contributions and Employment Insurance premiums. Interest on overpayments owed by the CRA to corporate taxpayers will be 1% and to non-corporate taxpayers 3%. To calculate taxable benefits for employees and shareholders from interest-free and low-interest loans, the rate is 1%. Rates are calculated quarterly.
• The federal government would like your input on Pooled Registered Pension Plans (PRPPs). The Department of Finance has released for consultation draft legislation for changes to the Income Tax Act and the Income Tax Regulations to accommodate PRPPs, a broad-based, low-cost, defined-contribution pension vehicle available to employers, employees and self-employed individuals. You can submit comments to PRPPtaxrules-RPACreglesfiscales@fin.gc.ca until Feb.14,2012. The backgrounder and explanatory notes can be found at www.fin.gc.ca/n11/11-134-eng.asp.