Income-Splitting Loans
Trusts, Wills, Estates and Charities Bulletin
April 2009
The Canada Revenue Agency (the “CRA”) has announced the 2009 second quarter prescribed interest rate used to calculate taxable benefits for employees and shareholders for interest-free and low-interest loans would be 1%. With this the lowest historical prescribed rate ever, many clients may be candidates for an income-splitting structure using non-arm’s-length loans.
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