On December 12, 2023, the CRA announced that the prescribed income tax interest
rates for taxable benefits, overpaid taxes, and underpaid taxes will increase by one percent in the first quarter of 2024 (January 1, 2024 - March 31, 2024).
- The interest rate on overdue income taxes and penalties will decrease from nine to eight percent.
- The prescribed rate for refunds of overpaid tax will increase from seven to eight percent for non-corporate taxpayers and from five percent to six percent 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 the
prescribed rate of family income-splitting loans will increase from five to six percent.