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Last updated: May 29 2024
Tax Milestones: Prescribed Interest Rates Drop, Deadlines in June
Rounding out the tax filing season 2024, in which 29,894,168 tax returns have been filed up to May 27 (59% by EFILE), the average refund is $2,178 and the average balance due is $7,164. Compared to 2023, just over 400,000 taxpayers have yet to file. Good news for those who owe: the prescribed interest rates will fall for the first time since the fourth quarter of 2023. With the upcoming proprietorship filing deadline of June 17, and the capital gains inclusion rate changes on or after June 25, the clock is ticking on June’s numerous tax filing milestones. Here’s what to discuss:
Prescribed Interest Rates for the third quarter of 2024 (July to September) will be:
- 9% - Charged by CRA on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums
- 7% - Paid by CRA on non-corporate taxpayer overpayments
- 8.96% - Charged on corporate taxpayers’ pertinent loans or indebtedness
- 5% - Paid by CRA on corporate taxpayer overpayments
- 5% - The rate used to calculate taxable benefits for employees and shareholders from interest free and low-interest loans and for inter-spousal investment loans.
Recent History of Prescribed Interest Rates:
|
|
2022 |
2023 |
2024 |
|||||||||
|
Quarter: |
1 |
2 |
3 |
4 |
1 |
2 |
3 |
4 |
1 |
2 |
3 |
4 |
|
Overdue Taxes |
5% |
5% |
6% |
7% |
8% |
9% |
9% |
9% |
10% |
10% |
9% |
|
|
CPP/EI premiums |
5% |
5% |
6% |
7% |
8% |
9% |
9% |
9% |
10% |
10% |
9% |
|
|
Tax Overpayments |
3% |
3% |
4% |
5% |
6% |
7% |
7% |
7% |
8% |
8% |
7% |
|
|
Tax Overpayments (Corporate) |
1% |
1% |
2% |
3% |
4% |
5% |
5% |
5% |
6% |
6% |
5% |
|
Tax Filing Milestones for June and July: Mark your calendar and remind your clients
May
- May 1: Interest is charged on tax balance due
- Canada Dental Care Plan: Open to seniors aged 65 to 69
- May 17: CCB Payment
- May 22: KB CE Savvy Summit: Advanced Retirement & Estate Planning Course launched
- May 29: CPP, OAS, GIS benefits payment date
- May 30: Canada Veterans’ Disability Benefit payment date
- Deceased prior year Nov. 1 to 30 – file 6 months after death
June
- June 1: Canada Dental Care Plan: Open to Disabled and Children under 18
- June 5: Bank of Canada interest rate announcement, RWM™ Meeting of the Minds Webinar
- June 15: Make election or revocation to stop contributing to CPP or revoke a prior election
- June 17: T1 proprietorship filing deadline. Make quarterly tax instalment remittance.
- Snowbirds: file Closer Connection Exception Statement for Aliens (IRS Form 8840); File extension to file US tax return (IRS Form 4868)
- June 17: KB Online Summer Semester 1 Begins
- June 20: CCB Payment
- June 25: Capital Gains inclusion rate increases to 66.66% for certain taxpayers: after first $250K for individuals; from first dollar for corporations and trusts. LCGE increases to $1.25M
- June 26: CPP, OAS, GIS benefits payment date
- June 27: Canada Veterans’ Disability Benefit payment date
- June 30: (Sunday) Form RC243 TFSA Return and RC243-Schedule A – Excess TFSA Amounts; filing due date for Section 216, 217 Returns to report net rental income from Canadian-source rental income. Canada Dental Benefit ceases, replaced by Canada Dental Care Plan.
- Deceased prior year Dec. 1 to 31 – file 6 months after death
