CRA Prescribed Rate Remains at One Percent for Q2 2016 | KPMG | CA

CRA Prescribed Rate Remains at One Percent for Q2 2016

CRA Prescribed Rate Remains at One Percent for Q2 2016

Canadian Tax Adviser, February 16, 2016. The CRA's prescribed income tax interest rates for taxable benefits, overpaid taxes, and underpaid taxes for the second quarter of 2016 (April 1, 2016 - June 30, 2016) will remain unchanged.

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Currently, the rate for penalties and interest on overdue income taxes is 5%. The prescribed rate for refunds of overpaid tax is 3% for non-corporate taxpayers (1% for corporate taxpayers), and the prescribed rate that applies to taxable benefits for employees and shareholders from interest-free and low-interest loans is 1%.

Prescribed rates for 2015 and 2016 are as follows:

 
Taxable Benefits
Overpaid Taxes
Underpaid Taxes
Corporations Others
2016        
January 1- March 31 1% 1% 3% 5%
April 1- June 30 1% 1% 3% 5%
2015        
October 1- December 31 1% 1% 3% 5%
July 1- September 30 1% 1% 3% 5%
April 1- June 30 1% 1% 3% 5%
January 1- March 31 1% 1% 3% 5%

For more information, contact your KPMG adviser.

Disclaimer

Information is current to February 16, 2016. 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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