The CRA recently announced the prescribed interest rates that apply in the third quarter of 2018. The rates remain the same as those that apply in the second quarter.
• The annual interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance premiums is 6%, compounded daily.
• The interest rate paid on late refunds paid by the CRA to corporations is 2%, compounded daily.
• The interest rate paid on late refunds paid by the CRA to other taxpayers is 4%, compounded daily.
• The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans is 2%.
This letter summarizes recent tax developments and tax planning opportunities from a third-party affiliate; however, we recommend that you consult with an expert before embarking on any of the suggestions contained in this blog post, which are appropriate to your own specific requirements. Please feel free to get in touch with Lee & Sharpe to discuss anything detailed above, we would be pleased to help.
