Prescribed Rate - Historic Lows Govern Interspousal Loans
CRA has provided us with the lowest prescribed rates in the last 25 years - 1% once again this quarter- for the application to outstanding sums for shareholder loans, employee benefits and interspousal loans. This is a great opportunity to use low-taxed corporate dollars to fund family income splitting, the purchase of new vehicles, new investments or to fund employer-required moves.
Advisors and their clients should be discussing these strategies in the post June 15 period, after filing 2008 proprietorship returns.
The Canada Revenue Agency announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts the CRA owes to individuals and corporations. These rates are calculated quarterly in accordance with applicable legislation and will be in effect from July 1, 2009, to September 30, 2009.
Income tax
Other taxes
The interest rate on overdue and overpaid remittances for the following taxes will be:
|
Tax and Duty |
Overdue remittances |
Overpaid remittances |
|
GST |
5% |
3% |
|
HST |
5% |
3% |
|
Air Travellers Security Charge |
5% |
3% |
|
Excise Tax (non GST) |
5% |
3% |
|
Excise Duty (except Brewer Licensees) |
5% |
3% |
|
Excise Duty (Brewer Licensees) |
3% |
N/A |
|
Softwood Lumber Products Export Charge |
5% |
3% |
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EverGreen Explanatory Notes.
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