On March 6, 2015, CRA released Income Tax Folio S3-F6-C1: Interest Deductibility which replaces Interpretation Bulletin IT-533. The Folio notes that three criteria must be met for an amount to be considered interest, as follows:
Various other issues are also discussed.
For further information see VTN Monthly Tax Update Seminar, Issue No. 405
- calculated on a day-to-day accrual basis;
- calculated on a principal sum; and,
- compensation for the use of the principal sum