Interest rates for the third calendar quarter

Rate on overdue taxes, EI, CPP remains at 5 per cent
|payroll-reporter.com|Last Updated: 07/04/2012

The Canada Revenue Agency (CRA) announced 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.

These rates are calculated quarterly in accordance with applicable legislation and will be in effect from July 1, 2012, to Sept. 30, 2012. The rates below remain unchanged.

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 paid to corporate taxpayers on overpayments will be one per cent.

•The interest rate paid to non corporate taxpayers 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

The interest rate on overdue and overpaid remittances for the following taxes will be:

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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