CRA releases interest rates for amounts owing in first quarter 2012

Interest rate on corporate taxpayer overpayments will be 3 per cent
|payroll-reporter.com|Last Updated: 12/16/2011

The Canada Revenue Agency (CRA) has released the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts the CRA owes to individuals and corporations in the first quarter of 2012.

These rates are calculated quarterly in accordance with applicable legislation and will be in effect from Jan. 1 to March 31, 2012.

Income tax

•the interest rate charged on overdue taxes, Canada Pension Plan (CPP) contributions and employment insurance premiums will be five per cent

•the interest rate to be paid on corporate taxpayers overpayments will be one per cent

•the interest rate to be paid on non corporate taxpayers overpayments will be three per cent

•the interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be one per cent

Other taxes, duties or charges

The interest rates on overdue and overpaid remittances are as follows:

Tax, duty, or other charges

Overdue remittances

Overpaid remittances

Corporate taxpayers

Non corporate taxpayers

· Goods and Services Tax (GST)

5%

1%

3%

· Harmonized Sales Tax (HST)

5%

1%

3%

· Air travellers security charge

5%

1%

3%

· Excise tax (non GST/HST)

5%

1%

3%

· Excise duty (except brewer licensees)

5%

1%

3%

· Excise duty (brewer licensees)

3%

N/A

N/A

· Softwood lumber products export charge

5%

1%

3%

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