Rules of Application
• Where interest free or low interest loans are made available to employees or shareholders.
Computation of Benefit
• Outstanding loan x prescribed interest rate = taxable benefit.
• Reduce by any amount paid by the employee.
• No GST/HST or QST applicable.
• Prescribed interest rates:
- Jan 1 – Mar 31 5%
- Apr 1 – Jun 30 5%
- Jul 1 – Sep 30 5%
- Oct 1 – Dec 31 5%