2016 Prescribed Interest Rate for PLOIs - Slight... | KPMG | CA

2016 Prescribed Interest Rate for PLOIs - Slight Decrease for Q1

2016 Prescribed Interest Rate for PLOIs - Slight...

Canadian Tax Adviser, November 03, 2015. KPMG estimates that the quarterly prescribed interest rate to be used when determining the deemed interest income inclusion from a pertinent loan or indebtedness (PLOI) will decrease to 4.41% (from 4.52%) for January 1, 2016 - March 31, 2016. This rate is generally the average yield of Government of Canada 90-day Treasury Bills sold during the first month of the preceding quarter (rounded to two decimal places) plus 4%.

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As a result, the prescribed interest rates for PLOIs are as follows:

 

  Quarterly Prescribed Interest Rates
2016
January 1 - March 31 4.41%
2015
October 1 - December 31 4.52%
July 1 - September 30 4.61%
April 1 - June 30 4.75%
January 1 - March 31 4.89%

*KPMG Estimates

For more information, contact your KPMG adviser.

Disclaimer

Information is current to November 03, 2015. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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