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ARTICLE · 18 JANUARY 2023

CRA Prescribed Rate Rising – How Will You Be Impacted?

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The Department of Finance confirmed that the prescribed interest rate will be 8% in the first quarter of 2023. The rate increase will impact those who owe money to the Canada Revenue Agency (CRA)...

CanadaTax
Crowe MacKay LLP
Crowe MacKay LLP
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The Department of Finance confirmed that the prescribed interest rate will be 8% in the first quarter of 2023. The rate increase will impact those who owe money to the Canada Revenue Agency (CRA) and those contemplating a prescribed-rate loan strategy, as well as intergenerational transfers and corporate freezes.

Crowe MacKay's trusted advisors share how the increase may impact you and provide some tax planning solutions. If you require assistance, connect with us in Alberta, British Columbia,

What is the Prescribed Rate?

The prescribed rate is set quarterly and tied directly to the yield on the Government of Canada's three-month Treasury Bills. Calculations are based on a formula in the Income Tax Regulations, which takes the average of three-month Treasury Bills for the first month of the preceding quarter up to the next highest whole percentage point.

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