[Verse 1] When families want to split their income streams Prescribed rate loans fulfill those schemes The government sets the quarterly rate Lock it in before it's too late Lend to spouse or adult child today Watch the income flow their way [Chorus] P-R-L, lock the rate and lend P-R-L, attribution rules will bend Document the terms, charge interest true Pay by January thirty-one, that's what you do Prescribed rate magic, income splitting gold Beat the taxman's grip with strategies bold [Verse 2] When rates are low, that's your cue to act Lock that percentage in the lending pact The borrower invests your money well Earning more than interest they must sell The surplus income stays in their hands Lower tax bracket, that's where it lands [Chorus] P-R-L, lock the rate and lend P-R-L, attribution rules will bend Document the terms, charge interest true Pay by January thirty-one, that's what you do Prescribed rate magic, income splitting gold Beat the taxman's grip with strategies bold [Bridge] Commercial terms or CRA will strike Formal agreements, get the language right Bona fide arrangement, not a sham Interest payments annual, stick to the plan Attribution defeated when you play by rules Prescribed rate lending, sharpest tax tools [Verse 3] Watch the calendar, timing is key Quarterly changes, monitor carefully January first, April, July, October too New rates published, what will you do? Existing loans keep their frozen rate New loans follow whatever's current date [Chorus] P-R-L, lock the rate and lend P-R-L, attribution rules will bend Document the terms, charge interest true Pay by January thirty-one, that's what you do Prescribed rate magic, income splitting gold Beat the taxman's grip with strategies bold [Outro] Family planning with financial art Prescribed rate loans, play the smartest part
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