[Verse 1] When families want to split their income flow There's a special rate that helps the money grow Canada Revenue sets it every quarter Prescribed rate loans keep attribution slaughter The rate is locked when documents are signed One percent or two, whatever rate you find Lend to spouse or kids at this low cost Beat attribution rules, no income lost [Chorus] Prescribed rate loans, lock it in Document right, let planning begin Interest paid by January thirty-first Avoid attribution, income dispersed P-R-L, that's the key Family planning strategy [Verse 2] Timing matters when you start the game Rising rates mean lock before they change If prescribed rate climbs from one to three Your old loan stays at one, lucky you'll be The borrower invests at higher yield Market returns of six percent revealed Pay one percent back, keep five for free Income split successfully [Chorus] Prescribed rate loans, lock it in Document right, let planning begin Interest paid by January thirty-first Avoid attribution, income dispersed P-R-L, that's the key Family planning strategy [Bridge] Written agreement, formal and clear Interest terms stated, year after year Commercial terms, arm's length deal Make it legitimate, make it real Annual payment, don't be late One day past due seals your fate Attribution kicks right back in All your planning down the drain [Verse 3] Corporate structures amplify the gain Prescribed rate loans through the corporate chain Freeze estate values, pass growth along When rates are low, the strategy's strong Monitor payments, track every dime CRA scrutiny happens all the time Professional advice, don't go alone Complex rules around every loan [Chorus] Prescribed rate loans, lock it in Document right, let planning begin Interest paid by January thirty-first Avoid attribution, income dispersed P-R-L, that's the key Family planning strategy [Outro] When the rate is low and markets high Prescribed rate loans will multiply Your family's wealth across the years Smart tax planning, that much is clear
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