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The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescribed interest leasing rate for the month of August 2021 will be 2.77%.

The CRA's instructions on how to calculate the prescribed leasing interest rate, which includes a link to the necessary bond yield information can be found at https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses/leasing-costs/prescribed-interest-rates.html.

As announced in this year's federal Budget, some recipients of Old Age Security will receive a one-time supplement, to be paid in August 2021.

During that month, OAS recipients who were born on or before June 30, 1947 will receive a payment of $500. No application is necessary, as the payment will be made automatically to all eligible OAS recipients. It is expected that payment will be made during the week of August 16, 2021.

As with all OAS amounts, the supplement payment will be taxable income, to be reported on the return for the 2021 tax year.

Details of the supplement payment can be found on the federal government website at  https://www.canada.ca/en/employment-social-development/news/2021/07/date-announced-for-500-one-time-payment-and-old-age-security-to-be-automatically-increased-by-almost-100-over-the-coming-year.html.

The current benefit year for the Canada Child Benefit runs from July 1, 2021 to June 30, 2022. The federal government recently announced that Child Tax Benefit amounts for this benefit year have been increased.

Specifically, for the 2021-22 benefit year, the maximum annual benefit will be $6,833 per child under age 6 and $5,765 per child aged 6 through 17. 

The announcement of the increase can be found at https://www.canada.ca/en/employment-social-development/news/2021/07/canada-child-benefit-5th-anniversary--indexation0.html, and more detailed information on the Canada Child Benefit program is available at https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview.html.

The most recent release of Statistics Canada's Labour Force Survey shows a rebound in employment, as pandemic-related public health restrictions were eased in several provinces.

For the month of June, employment increased by 231,000, or 1.2%, following a cumulative decline of 275,000 during April and May. For June, the overall unemployment rate declined from 8.2% to 7.8%.

Details of the employment picture for June, by province, sector, and demographic group can be found in the July release of the Labour Force Survey, which is available on the StatsCan website at https://www150.statcan.gc.ca/n1/daily-quotidien/210709/dq210709a-eng.htm?HPA=1&indid=3587-2&indgeo=0.

In its regularly scheduled interest rate announcement made on July 14, the Bank of Canada indicated that, in its view, no change to current rates was required. Accordingly, the Bank Rate remains at 0.5%.

In the press release announcing its decision, the Bank noted that the inflation rate for the month of May stood at 3.6%, which the Bank attributed to temporary factors, including “pandemic-related bottlenecks as economies re-open”. In the Bank's view inflation is likely to remain above 3% for the rest of 2021 before easing back to 2% in 2022. The Bank also re-affirmed its commitment to maintaining interest rates at current levels until the 2% inflation target is sustainably achieved.

The press release announcing the Bank's interest rate decision can be found on its website at https://www.bankofcanada.ca/2021/07/fad-press-release-2021-07-14/. The next regularly scheduled interest rate announcement will take place on September 8, 2021.

The Old Age Security benefit administered by the federal government is adjusted quarterly to reflect the rate of inflation.

The federal government has announced that the maximum basic OAS benefit payable from July 1 to September 30, 2021 will increase by 1.3%. That change will mean that the maximum basic benefit increases from $618.45 to $626.49.

The announcement of the increase, and more detailed information on the OAS and GIS benefits payable during the third quarter of 2021 is available at https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security/payments.html.

The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the first three quarters of 2021, as well as the rates that will apply for the purpose of calculating employee and shareholder taxable benefits.

                                         Debit rate          Credit rate       Shareholder Benefits

January 1 – March 31              5%                1% / 3%                     1%

April 1 – June 30                     5%                1% / 3%                     1%

July 1 – September 30             5%                1% / 3%                    1%

Additional details of interest rates charged and paid by the CRA can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/tax/prescribed-interest-rates.html.

In its regularly scheduled interest rate announcement made on June 9, 2021, the Bank of Canada determined that, in its view, no change to current rates was needed. Accordingly, the Bank rate remains at 0.5%.

In the press release announcing its decision, the Bank indicated that while the inflation rate has risen to around the top of the 1–3% inflation-control range and that it will likely remain near 3% through the summer of 2021, those increases are due to base-year effects and higher prices for gasoline. The Bank expects such increases in the rate of inflation to ease later this year.

The press release announcing the Bank's decision can be found on its website at https://www.bankofcanada.ca/2021/06/fad-press-release-2021-06-09/. The Bank's next regularly scheduled interest rate announcement date is July 14, 2021.

The Canada Revenue Agency (CRA) has announced the interest rates which will apply to amounts owed to and by the CRA for the first three quarters of 2021, as well as the rates that will apply for the purpose of calculating employee and shareholder taxable benefits.

                                            Debit rate          Credit rate       Shareholder Benefits

January 1 – March 31                 5%                1% / 3%                   1%

April 1 – June 30                        5%                1% / 3%                   1%

July 1 – September 30                5%               1% / 3%                    1%

Additional details of interest rates charged and paid by the CRA can be found on the CRA website at https://www.canada.ca/en/revenue-agency/services/tax/prescribed-interest-rates.html.

The prescribed leasing interest rate mandated by the Canada Revenue Agency (CRA) must be calculated using bond yield information found on the Bank of Canada website. That calculation shows that the prescribed interest leasing rate for the month of July 2021 will be 2.91%.

The CRA's instructions on how to calculate the prescribed leasing interest rate, which includes a link to the necessary bond yield information can be found at How to calculate Prescribed Interest Rates for Leasing Rules - Canada.ca.