CRA’s Rate On Overdue Taxes Will Rise To 10 Per Cent, Causing Tax Advisers To Shift Strategy
Courtesy of The Globe And Mail, published November 7th, Updated November 9th
The Canada Revenue Agency’s interest rate on overdue taxes will soon rise to 10 per cent, tax experts say, making paying back the agency more expensive and a greater priority for many individuals and already-stretched small business owners.
Until last year, the interest rate on unpaid taxes was low enough that it was not always a top financial priority, several accountants told The Globe and Mail. Since 2007, the rate has remained stable at five per cent or six per cent, a manageable level for most people.
But that has changed in recent months. In the second quarter of 2022, the interest rate on unpaid taxes started a steep incline, since then rising to nine per cent.
In the first quarter of 2024, barring any special CRA measures, the rate will climb from nine per cent to 10 per cent, double what it has been for most of the past decade. The CRA lists quarterly rates from 2006 onward on its current website, and this will be the first time since then the rate has reached double digits…… Note you may have to subscribe to Globe And Mail to see this article
Patricia is the Business Mentor and owner of Grow Vantage and a Past President of the Barrie Chamber of Commerce. She applies over 30 years of business experience (from start-up to corporate) to mentor entrepreneurs. Since 2011, she has held over 6,500 coaching and training sessions in-person and online. Through Ask For Directions Training, her entrepreneurial training program (and parent company Grow Vantage), and as a business coach, she works with start-ups who are new (or who have lost traction) to design, launch and grow their businesses. Along with 20 other expert instructors she teaches strategies in marketing, sales, communications, and finance, as well as practical techniques to increase productivity, and manage their businesses. In other words, everything entrepreneurs need to learn to grow and run their businesses successfully, and avoid the costly mistakes they can't even see coming - that lead to delays in growth and getting stuck.
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