CRA announces prescribed annual interest rates

Nearly all rates increase by 1 per cent
|payroll-reporter.com|Last Updated: 10/29/2013

The Canada Revenue Agency (CRA) has announced the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts it owes to individuals and corporations.

These rates are calculated quarterly in accordance with applicable legislation and will be in effect from Oct. 1 to Dec. 31. All interest rates have increased by one percentage point since last quarter, except for the rate for corporate taxpayers pertaining to interest on loans and indebtedness.

Income tax

• The interest rate charged on overdue taxes, Canada Pension Plan (CPP) contributions, and employment insurance premiums will be six per cent.
• The interest rate to be paid on corporate taxpayers overpayments will be two per cent.
• The interest rate to be paid on non-corporate taxpayers overpayments will be four per cent.
The interest rate used to calculate taxable benefits for employees and shareholders from interest-free and low-interest loans will be two per cent.
• The interest rate used to calculate corporate taxpayers loans or indebtedness will be 5.02 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

Overpaid remittances – Non-corporate taxpayers

Goods and Services Tax (GST)

Six per cent

Two per cent

Four per cent

Harmonized Sales Tax (HST)

Six per cent

Two per cent

Four per cent

Air travelers’ security charge

Six per cent

Two per cent

Four per cent

Excise tax (non GST/HST)

Six per cent

Two per cent

Four per cent

Excise duty except brewer licensees (amounts payable after June 30, 2003)

Six per cent

Two per cent

Four per cent

Excise duty except brewer licensees (amounts payable before July 1, 2003)

Four per cent

N/A

N/A

Excise duty (brewer licensees)

Four per cent

N/A

N/A

Softwood lumber products export charge

Six per cent

Two per cent

Four per cent

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