CRA releases interest rates for second quarter
Rates apply to amounts owed to CRA, amounts CRA owes individuals, corporations
03/18/2013|payroll-reporter.com|Last Updated: 03/18/2013
The prescribed annual interest rates that will apply to any amounts owed to the Canadian Revenue Agency (CRA) and to any amounts the CRA owes to individuals and corporations have been set.
These rates are calculated quarterly in accordance with applicable legislation and will be in effect from April 1 to June 3, the CRA said. The rates listed below remain unchanged from the previous quarter.
• 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 taxpayer overpayments will be one per cent.
• The interest rate to be paid on non-corporate taxpayer 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 and duty||Overdue remittances|
|Corporate taxpayers||Non corporate taxpayers|
|Goods and services tax (GST)||five per cent||one per cent||three per cent|
|Harmonized sales tax||five per cent||one per cent||three per cent|
|Air travelers security charge||five per cent||one per cent||three per cent|
|Excise tax (non GST)||five per cent||one per cent||three per cent|
|Excise duty (except brewer licensees)||five per cent||one per cent||three per cent|
|Excise duty (brewer licensees)||three per cent||N/A||N/A|
|Softwood lumber products export charge||five per cent||one per cent||three per cent|
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