The CRA has set the prescribed annual interest rates for amounts owing in Q4.

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The only change from the last quarter was the rate for the interest rate for corporate taxpayers’ pertinent loans or indebtedness, which will be 4.49%, CRA says.

The rates will cover the period from October 1 to December 31, 2016.

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CRA outlined the following interest rates:

  • 5% on on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums;
  • 1% on corporate taxpayer overpayments;
  • 3% on non-corporate taxpayer overpayments; and
  • 1% to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans.

See the full list of Q4 rates here.

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Tell clients about these insurance changes before year-end