Month: March 2018

The CRA has announced an increase in the prescribed interest rates for amounts owing in the Second Quarter of 2018, with the basic rate rising from 1% to 2%. The prescribed rate increase had been expected since January when the Bank of Canada raised its overnight rate. It’s the first increase since the prescribed rate dropped to 1% at the start of 2014. The prescribed rate is determined quarterly by a formula in the Income Tax Regulations that calculates the average of three-month Government of Canada Treasury yields for the first month of the preceding quarter. The following rates will be in effect April 1 to June 30: 6% on overdue taxes, CPP contributions and employment insurance premiums (up from 5% in Q1) 2% on corporate taxpayer overpayments (up from 1% in Q1) 4% on non-corporate taxpayer overpayments (up from 3% as Q1) 2% on taxable benefits for employees and shareholders from interest-free and low-interest loans (up from 1%) 5.18% for corporate taxpayers’ pertinent loans or indebtedness (up...