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Hi,
As the title suggests, I made an error and did not make the interest payment within 30 days of my low interest loan to my trust. The trust's year end is 12/31 and it is now 2/27. Is there anything I can do to make things right, ie not have the gains of the trusts investments taxed in my hands or at my rate? Happy to make the payment now, wondering if there is any disclosure to cra or additional interest or penalties that I could pay.
Thanks.
Hi Bill, the payment has to be made by January 30, or else the income attribution rules will apply for the year. If the cheque for the interest payment is dated on January 30, this is considered as 'paid'. But you cannot back-date a cheque.