Non-arm’s length loan interest deadline looming
We want to take this opportunity to remind clients that they need to ensure that all interest payable on all outstanding non-arm’s length loans is paid on or before January 30th, 2015.
In 2014 or earlier, you may have made a loan to a grandparent, parent, spouse, sibling, child or grandchild for the purpose of income splitting. In order to ensure that any income earned from the funds loaned to that particular individual does not attribute back to you, any interest accruing on the loan must be actually paid to you no later than 30 days following the end of each year following the year in which that loan was made.
Please contact us if you have any questions or concerns or if you require further clarification with the matter.