Canada Revenue Agency (CRA) will begin charging 10% on late payments in the first quarter of 2024,\u00a0 up from 9% currently.<\/p>\n
The prescribed rate the CRA charges on\u202foverdue tax<\/a> is set four percentage points higher than the prescribed rate for family loans.<\/p>\n
Prescribed interest rates began rising in the third quarter of 2022 as inflation rose. Before then, the prescribed rate for loans to family members had been 1%<\/a>, and the rate charged on overdue tax 5%, for two years.<\/p>\n
Prescribed-rate loans can be used to\u202fsplit investment income with a spouse, common-law partner or other family member<\/a>.<\/p>\n
The prescribed rate is calculated every quarter.<\/p>\n
According to section 4301 of the Income Tax Regulations, the prescribed rate is based on the average yield of Government of Canada three-month Treasury bills auctioned in the first month of the preceding quarter, rounded up to the next whole percentage.<\/p>\n
The auction yields for three-month T-bills were 5.16% on Oct. 10 and 5.16% on Oct. 24. As the average of those two yields is 5.16%, the prescribed rate will rise to 6% for the first quarter of 2024.<\/p>\n","protected":false},"excerpt":{"rendered":"
The prescribed rate is set to rise in Q1 2024<\/p>\n","protected":false},"author":176168,"featured_media":471250,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2318],"tags":[3551,2749],"yst_prominent_words":[5362,10319,61624,63208,107143,107144,107146],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/473808"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/176168"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=473808"}],"version-history":[{"count":4,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/473808\/revisions"}],"predecessor-version":[{"id":473944,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/473808\/revisions\/473944"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media\/471250"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=473808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=473808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=473808"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=473808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}