2012 Fourth Quarter Prescribed Interest Rates

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Fresh off the press…

CRA announced today the 4th quarter interest rates for 2012.  Effective October 1 to December 31, 2012, the interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be 1%.

Please remember that a cash advance given to an employee that is repaid over a period of several pay periods is considered an interest free loan and is subjected to the 1% taxable benefit.

For more information on prescribed rates you can visit the link below:

 

www.cra.gc.ca/interestrates

 

Helping you to better understand what’s in your pocket.

Until next time…

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