On December 12, 2022, the CRA announced that the prescribed income tax interest rates for taxable benefits, overpaid taxes, and underpaid taxes will increase by one per cent in the first quarter of 2023 (January 1, 2023 - March 31, 2023).
- The interest rate on overdue income taxes and penalties will increase to eight per cent (from seven per cent).
- The prescribed rate for refunds of overpaid tax will increase to six per cent (from five per cent) for non-corporate taxpayers and four per cent (from three per cent) for corporate taxpayers.
- The prescribed rate that applies to taxable benefits for employees and shareholders from interest-free and low-interest loans, as well as to the prescribed rate of family income-splitting loans, will also increase to four per cent (from three per cent).
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