22 March 1990 Income Tax Severed Letter AC59690 - Exception to Attribution Rules - Commercial Interest Rate on Loan

By services, 22 July, 2022
Official title
Exception to Attribution Rules - Commercial Interest Rate on Loan
Language
English
Document number
Citation name
AC59690
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
657166
Extra import data
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"field_release_date_new": "1990-03-22 07:00:00",
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Main text
5-9690
                 19(1)                    M. Eisner
                                          613-957-2138
March 22, 1990
          19(1)

Thank you for your letter of February 26, 1990 which is further to our letter of November 16, 1989 concerning the rate of interest that can be charged for the purposes of subsection 74.5(2) of the Income Tax Act in respect of a loan you propose to obtain from your spouse.

Since your situation involves a prescribed interest rate that changes every quarter and a commercial interest rate that can change over a short time, we suggest that you contact officials of the London District Office who will be able to provide you with information in an expeditious manner. For your further information, we note that the prescribed interest rate in effect from January 1, 1990 to March 31, 1990 is 15%.

We trust you will find the foregoing satisfactory.

Yours truly,

For Director Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch