We have written before about the “unprecedented window of opportunity” for wealthy families to save tax as a result of CRA’s historically low 1% rate on prescribed rate loans. See our blog post A window of tax saving opportunity…for how long? The prescribed rate dictates the minimum interest that must be charged on income-splitting loans to spouses and family trusts. A popular, low-risk form of tax planning with many of our clients.
Truth be told, when we wrote that blog piece back in 2010 we didn’t expect the 1% rate would still be in effect in 2013. And from what we hear, it won’t be much longer. [read more >>]