The Revenue Agency of Canada have declared that the formal income tax interest rates in respect of taxable benefits, overpaid taxes, and underpaid taxes will all deduct by 1% as of January 1, 2014.
The prescribed rate that uses to taxable credits for employees and shareholders from interest-free and low-interest loans will deduct from 2% to 1% and before January 1, 2014, the family loans will be subject to the 2% prescribed rate.
The penalty rates and interest on belated income taxes will decrease from 6% to 5% and the prescribed rate for refunds of overpaid tax will decrease from 4% to 3% for non-corporate taxpayers and from 2% to 1% for corporate taxpayers.
