Fourth Quarter Prescribed Interest Rate Set: It’s 2%

CRA announced on September 23 that the prescribed annual interest rates will indeed go up by 1% on amounts owed to and by the CRA by individuals and corporations.

These rates are calculated quarterly and will be in effect from October 1, 2013 to December 31, 2013.

For income taxes that prescribed rates are:

• 6%: The interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums
• 4%: The interest rate to be paid by CRA on non-corporate taxpayers’ overpayments
• 2%: The interest rate to be paid by CRA on corporate taxpayers’ overpayments
• 2%: The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans
• The interest rate used to calculate corporate taxpayers loans or indebtedness will be 5.02%.