Prescribed Rates Announced For First Calendar Quarter in 2010

CRA has once again provided us with the lowest prescribed rates in recent history - a 1% rate for certain taxable benefits and loans has been in place since April 2009.  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 should also consider speaking to their clients about opportunities for inter-spousal and shareholder loans with the low rates in effect.

 

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 January 1, 2010, to March 31, 2010 and have remained unchanged since April 1, 2009.

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%

 

Educational Resource: For more information on tax planning provisions and compliance requirements subscribe to The Knowledge Bureau's online tax reference for taxpayers, financial advisors and their clients: EverGreen Explanatory Notes.